"Everything's Crashing"

Submitted by Tyler Durden on 12/11/2015 - 09:37
The writing has been on the wall for a few days/weeks, but it appears a combination of global FX and equity turmoil and domestic corporate debt market collapse is finally starting to roil US equity markets. The Dow is down over 600 points in the last week or so, bond yields are collapsing, the USDollar is tumbling, crude is crashing, and junk bonds are in free-fall.

Which "Junk" Fund Liquidates Next? After Third Avenue, Here Are The Unusual Suspects

Now that the first casualty in the junk bond space has spilled its blood in the water, the hungry sharks are circling. And perhaps the best place to look for the chum is where Third Avenue itself was discovered: dead last in the morningstar list of worst (and best) performing High Yield funds of 2015...

Russian Military Told To Boost "Strategic Nuclear Forces Amid Rising Tensions With The U.S."

Submitted by Tyler Durden on 12/11/2015 - 09:32 Syria was a secondary topic on Putin's mind today when during a meeting with his defense chiefs, Putin gave the order "to strengthen Russia’s strategic nuclear forces amid rising tensions with the U.S. over the global balance of power."

Yuan Slides As PBOC Signals Intent To Further Weaken Currency

We have been almost alone in our exclamations at the collapsing offshore Yuan in the last few days but since The IMF blessed China's currency with inclusion in The SDR, CNH is down 13 handles. However, now we appear to have an answer. Overnight saw commentary from CFETS (China's FX market 'manager') that indicated implicitly that Trade-Weighted Yuan was still trading too high.

Producer Prices Rises Most In Five Months, Service Inflation Highest In Over A Year

Following a miss in retail sales (if slight beat in core spending), the final key economic update the Fed will look at before its "first rate hike in nine years" meeting next week is today's Producer Price Inflation report which rose 0.3%, above the expected unchanged print and even higher compared to October's -0.4% decline. The report showed that while the decline in energy prices continued as expected, sliding 0.6% in the Final Demand Goods category, there was a surprising pickup in final demand services, which rebounded by 0.5% driven by Trade which rose 1.2% from the prior month, driven by an unexpected pickup in margins for apparel, jewelry, footwear, and accessories retailing.

Retail Sales Growth Tumbles To Weakest In 6 Years As Auto Sales Drop

Despite all the industry's exuberance over auto sales in America, the government's retail sales data shows vehicle sales dropped 0.4% in October (in other words, automakers are channel-stuffing). This rolled through the various headline data leaving a 4th miss in a row MoM and the weakest YoY growth for retail sales since Nov 2009 - deep in recession territory.

Rand Crashes, EM Stocks Plunge As Trader Warns, Absolutely Ignore The "It's-Priced-In" Meme

Submitted by Tyler Durden on 12/11/2015 - 08:02 "The Fed will drive home the lower and slower mantra. That is all spin, signifying nothing... There are so many unknowns, good and bad. Either way, absolutely ignore the "it’s priced in" claims... The Fed is going to raise rates next week, and anyone who claims it is not a huge deal is fooling you, as well as themselves."

Dow Dumps Over 300 Points From Thursday Highs After IEA Warns Oil Glut To Worsen

Submitted by Tyler Durden on 12/11/2015 - 07:43 'As goes oil, so goes the US equity market' appears to bethe new mantra. Just as yesterday's pump-and-dump tracked oil, so in the pre-market, WTI Crude plunged back to fresh 7-year lows after IEA warned that the oil glut will worsen, with prices lower for longer as demand remains subdued through at least 2017. This in turn sent US equities tumbling with Dow futures down 200 points (down 330 from Thursday highs).

Putin Orders Military To "Immediately Destroy" Any Threat To Russian Forces

Submitted by Tyler Durden on 12/11/2015 - 07:36 Russian President Vladimir Putin has ratcheted up the rhetoric in what appears to be one step closer to the potential for direct conflict with The West. While not detailing 'who' he was focued on, amid the obvious Turkey-Russia tensions, Putin told a session of the Defense Ministry's collegium that "I order to act extremely tough. Any targets that threaten Russian forces or our infrastructure on the ground should be immediately destroyed."

Dow, DuPont To Merge In $130 Billion Deal; 10% Of DowDuPont's Workforce To Be Fired

Submitted by Tyler Durden on 12/11/2015 - 07:05 It's official: two of America oldest publicly traded companies will merge, with Dow and DuPoint merging as equals in a combined company that will have a $130 billion market cap and will be named DowDuPont. And while shareholders already benefited from the deal with shares of both consitutents rising by 10% in the days preceding the official announcement, the biggest loser are once again the employees: the combined company announced that as part of the $700 million in restructuring efforts, 10% of the combined company's employees will be laid off.

US Equity Futures Suddenly Fall Off A Cliff As Europe Slides, Oil Tumbles, EM Currencies Turmoil

Submitted by Tyler Durden on 12/11/2015 - 06:41 It was a relatively calm overnight session in which European stocks wobbled modestly, Japan was up, China was down following its weakest fixing since 2011 as the PBOC continues to aggressively devalue since the SDR inclusion (stoking concerns capital outflows are once again surging), EM stocks stocks were weak and the dollar was unchanged ahead of today's retail sales data and next week's Fed meeting, and then suddenly everything snapped.

Jeremy Grantham Urges "Easily Manipulated" Americans To "Become More Realistic" About World's Demise

Submitted by Tyler Durden on 12/10/2015 - 23:10 Americans have a broad and heavy bias away from unpleasant data. We are ready to be manipulated by vested interests in finance, economics, and climate change, whose interests might be better served by our believing optimistic stuff "that just ain’t so." We are dealing today with important issues, one so important that it may affect the long-term viability of our global society and perhaps our species. It may well be necessary to our survival that we become more realistic, more willing to process the unpleasant, and, above all, less easily manipulated through our need for good news.

War Is On The Horizon: Is It Too Late To Stop It?

Submitted by Tyler Durden on 12/10/2015 - 22:50 One lesson from military history is that once mobilization for war begins, it takes on a momentum of its own and is uncontrollable. This might be what is occuring unrecognized before our eyes.

Credit Suisse Warns On China: "Some Companies Are Having To Borrow To Pay Staff Salaries"

Submitted by Tyler Durden on 12/10/2015 - 22:20 "Corporate balance sheet deterioration may well be a theme in 2016, raising market concerns, in our view. A mirror image of that is the rise in bank non- performing loans. Our contacts among the banks seem increasingly concerned about the NPL issue in 2016."

Whither Gold During a ‘Dangerous End Game’?

from The Daily Bell:
It’s going to get much worse for gold … It’s been another tough year for gold. The precious metal has fallen 10 percent in 2015 and is tracking for its longest yearly losing streak since 1998. And according to one technician, the pain will continue heading into 2016. “I think there’s still downside here,” Rich Ross said Monday on CNBC’s “Trading Nation.” – CNBC
Dominant Social Theme: Gold is headed toward the basement and then to the garbage can.
Free-Market Analysis: The knives are out again for gold as Wall Street waits impatiently for the Federal Reserve to hike interest rates, thus strengthening the dollar, which – so we are told – will result in another tumble for gold against the mighty greenback.
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The Middle Eastern Countries Are Now Turning Away From The US

from X22 Report:

The Global Commodity Crash Tells Us That A Major Deflationary Financial Crisis Is Imminent

by Michael Snyder, The Economic Collapse Blog:

If we really are plunging into a deflationary global financial crisis, we would expect to see commodity prices crash hard.  That happened just before the great stock market crash of 2008, and that is precisely what is happening once again right now.  On Thursday, the Bloomberg Commodity Index closed at 79.1544.  The last time that it closed this low was 16 years ago.  Not even during the worst moments of the last recession did it ever get so low.  Overall, the Bloomberg Commodity Index is down more than 28 percent over the past 12 months, and it has plummeted by more than half since mid-2011.  As a result of this stunning commodity collapse, extremely large mining companies such as Anglo American are imploding, giant commodity trading firms such as Glencore and Trafigura are in full-blown crisis mode, and huge portions of the global financial system are in danger of utterly collapsing.
Read More…

China Containerized Freight Index Crashes to Worst Level Ever

from Wolf Street:

To the chagrin of the government, China has one export that is booming: capital flight.
Fearing further devaluations of the yuan, a terribly inconvenient crackdown on corruption, political purges, and other mayhem, wealthy Chinese are trying to get part of their money out of harm’s way. Capital outflows tripled to an estimated $113 billion in November from October.
To prop up the yuan in face of this sort of capital flight, the People’s Bank of China has been selling foreign currency, including US Treasuries. As a consequence, its foreign exchange reserves plunged by $87 billion in November to $3.396 trillion, the lowest since February 2013. The export of capital is a booming business in China.
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7 Charts Show This is Financial Crisis Part 2 as Debt Deficits & Taxes Expand!

from The Money GPS:

The Coming Economic Collapse Will Crash Stocks

by Graham Summers, GoldSeek:
In 2008, the world experienced the worst economic collapse in 80+ years. This collapse triggered a stock market crash that erased $30 trillion in wealth.
Since that time, collectively Central Banks have cut interest rates over 600 times and have printed over $15 trillion in new money… money that has failed to generate sustained economic growth… money that has set the stage for another stock market crash.
Consider the measures of GDP growth in the US for instance.
The mainstream media likes to present the “official” GDP numbers as though they are gospel… but the reality is that the number you hear in the press is not even close to accurate.
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Regulators: Banks Are Now Making Riskier Loans, Just Like Before the Crash

by Pam Martens and Russ Martens, Wall Street on Parade:
The Office of the Comptroller of the Currency (OCC), which regulates national banks, including the behemoth Wall Street banks that either blew themselves up or became part of shot-gun marriages during the 2008 crash to avoid outright collapse, issued a warning yesterday that credit risks are rising at banks. The rising risks are the result of a loosening of loan underwriting standards, which, says the OCC, “reflects broad trends similar to those experienced from 2005 through 2007, before the most recent financial crisis….”
The first question that comes to mind from this report is what good is increased capital at the mega banks if the banks are simultaneously increasing the riskiness of the loans on their books. The next question is why the regulators have sat back and watched this risk grow over the past tumultuous year without nipping it in the bud. And the final question is what does the Financial Stability Oversight Council (FSOC) – the coalition of all the bank and Wall Street regulators that huddle together regularly in secret – plan to do about this growing threat to financial stability.
Read More…

Texas Police Chief Warns Obama That Gun Control Will “Cause A Revolution… You’re Not Our Potentate, Sir”

by Mac Slavo, SHTFPlan:

An East Texas police chief has cautioned the president against trying to enact further gun control measures and called upon all Americans, and particularly those in his tiny town, to arm themselves legally to withstand the threat of terror attacks or mass shootings on U.S. soil.

Police Chief Randy Kennedy sounded off in a video posted to Facebook after President Obama’s recent speech on terrorism, advising him to change his course, stating “if you try to disarm us, sir, then you will cause a revolution in this country to occur.”

Via the Associated Press:

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Obama Plans to Bypass Congress, Issue Executive Order Expanding Background Checks

by Kurt Nimmo, Infowars:
The Obama administration plans to forgo congressional approval and issue an executive order targeting the sale of firearms between individuals.

Obama’s senior adviser Valerie Jarrett indicated the unconstitutional order will expand background checks.  She said Obama instructed his team to complete a proposal and submit it for his review “in short order.”

In November Senate Democrats urged President Obama to circumvent Congress by using executive actions. Sens. Sen. Richard Blumenthal (D-CT) and Chris Murphy (D-CT) spearheaded the effort. Sens. Chris Coon (D-DE), Tom Carper (D-DE) and Tim Kaine (D-VA) have joined their colleagues. Obama and the Democrats have received support from the Michael Bloomberg-funded Everytown for Gun Safety organization.

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