"In Short Janet, It's Too Late" - Albert Edwards Calls It With These Seven Charts

Submitted by Tyler Durden on 12/17/2015 - 12:29
"The party's over and bond investors who always tend to be more sober types, realize this and have headed for the exits whereas equity investors are so intoxicated they haven't realized that the music has stopped. Equity investors are still gyrating around the dance floor - just as in 1999 and 2007... I believe the Yellen Fed will soon be treated with the same contempt the Greenspan Fed was in the aftermath of the 2008 financial crisis. And they will deserve it."

WTF Headline Of The Day: Saudi Millionaire Edition

 



  

The US Knows Where ISIS Videos Are Produced - But Does Nothing About It

Submitted by Tyler Durden on 12/17/2015 - 14:10 "Obviously, if we know where they’re producing the propaganda, we should be doing everything we can to destroy their facilities."
Yes, "obviously."
 

"Just Wait For The Bankruptcies" - The Latest Market That "Is In Real Trouble"

Submitted by Tyler Durden on 12/17/2015 - 13:50 Natural-gas fell to the lowest ever inflation-adjusted price in its history of NYMEX trading on Wednesday as extremely warm weather continues to limit demand. As we recently explained, the glut in nattie is worse than that facing the crude complex, and while the glut in oil is expected to continue for the next year or so before balancing in late 2016, the pain for liquefied natural gas (LNG) could be just beginning. As one trader warned "this market is in real trouble...just wait for the bankruptcies."

In First Post-Hike Reverse Repo, Fed Removes $105Bn Liquidity From 49 Banks

Submitted by Tyler Durden on 12/17/2015 - 13:35 In what appears to be an orderly process, The NY Fed's first Reverse Repo operation since The FOMC 'raised' rates accepted $105.185 billion of Treasury collateral from 49 banks at 25bps. This is being greeted as good news by many as no major disprutions appear to have occurred... aside from, of course, a 6bps plunge in long-end bond yields, 250 point drop in The Dow, and notable weakness in high-yield bonds. We gently remind readers that there is up to another $900 billion of liquidity to be withdrawn for now.



The same happens in the U.S. just ask any whistle blower...

Treason! Lawmaker Discovers It's Bad Idea To Accuse Erdogan Of Supplying Sarin Gas To ISIS

Eren Erdem, the Turkish opposition lawmaker who says ISIS obtained deadly sarin gas from Turkey and who also claims to have proof of Erdogan's role in Islamic State's lucrative oil smuggling business is now under investigation for treason. Just another day in Erdogan's thriving, NATO-backed democracy.

Shorting The Short-Sellers - Bearish Bets Soar On Loeb, Einhorn Firms

Submitted by Tyler Durden on 12/17/2015 - 13:10 Cynical short-sellers are targeting some of Wall Street's most famous short-sellers. Amid plunges in the stock prices of David Einhorn's Greenlight Capital and Dan Loeb's Third Point reinsurance entities, Bloomberg reports that bearish investors have piled in pushing short interest (as a percent of shares outstanding) to its highest since 2009.

How The Fed Just Launched The Next Bear Market: BofA's Unexpected Conclusion In 8 Charts

Submitted by Tyler Durden on 12/17/2015 - 13:00 "Rising rates and falling profits are not a good combination for asset prices, so we will turn sellers of risk in early 2016."



Need to keep the sheep scared...

Coming To America?

Sweden is in shambles (as we detailed here and here), but the latest escalation in terrorist-related threats to the refugee-protecting nation. As The Express reports, Sweden is now on lockdown after crazed Islamic State (ISIS) jihadis sent letters to European civilians ordering them to convert to Islam within three days or face being decapitated in their own homes. The chilling letters pledged to then "bomb your rotten corpses afterwards."

President Obama Tries (Again) To Reassure Nation Over Terrorist Threats - Live Feed

Submitted by Tyler Durden on 12/17/2015 - 12:12 With another big-spending weekend ahead for the American consumer, President Obama is set to explain to an increasingly worried nation that despite the apparent very real threat of terrorism (and all the spending, surveillance, and loss of liberty that is required to maintain your freedom), they should go about their borrowing-and-spending consumption duties... or else the terrorists win. Having managed somehow to both increase gun sales and push a majority to oppose an assault weapon ban, Obama will today re-reassure his fellow Americans that he knows what's best for them.

"That's Not Supposed To Happen" - Yield Curve Slumps To Flattest In 9 Months

Submitted by Tyler Durden on 12/17/2015 - 11:44 The Fed hiked... and the Treasury market threw up all over it, flattening the curve over 10bps in the last 16 hours (to 9 month lows). The reaction screams "policy error" as rate cut odds for January remain above rate-hike odds. Financials - who will benefit greatly from this rate hike if all the talking heads are to be believed - appears not to have got the flattening curve joke yet.

"Let Them Fly There Now": Putin Threatens To Shoot Down Turkish Jets In Syria, Calls Erdogan An Ass Kisser

Submitted by Tyler Durden on 12/17/2015 - 11:40

Why One Congressman Voted "NO" On The Massive, Wasteful Omnibus Bill

Submitted by Tyler Durden on 12/17/2015 - 11:31 "Once again I find myself shaking my head at the wasteful spending in DC and a flawed process that drops thousands of pages of text on us with 48 hours to “read” and understand... The fact that extremist environmental groups are pleased and that Obama hasn't threatened a veto tells you everything you need to know about this fundamentally-flawed bill."

November Unemployment Hits Seven Year High In Brazil As Supreme Court Mulls Impeachment Bid

Submitted by Tyler Durden on 12/17/2015 - 11:10 Brazil's Supreme Court green lighted House Speaker Eduardo Cunha's Rousseff impeachment bid on Wednesday, even as the high court is also considering a request for his removal. Meanwhile, the economy continues to deteriorate as we just got the highest unemployment reading for the month of November in seven years."

Investors Lose Faith - Slumping Stocks Give Up All Yellen Gains

Submitted by Tyler Durden on 12/17/2015 - 10:56 It appears the "what the market missed" that we detailed earlier - This sets the Fed on a collision course with the market because "with the market pricing fewer hikes than the Fed suggests, someone is going to end up being wrong," - is starting to filter out to the mainstream. Despite exuberant buying in FANGs, the broad market indices have retraced the post-Yellen exuberance as bond yields fade, hinting at the market's growing realization that this could be a policy error.

What If Economists Applied Their Own Theories... To Themselves

Submitted by Tyler Durden on 12/17/2015 - 10:45 It appears that a main preoccupation of economists – the self declared “behavioral economists” prominent among them – is to show how dumb people are as consumers and in assessing risks. Drawn to logical conclusion, this implies that economists, advising benevolent dictators are the solution. In ancient Greece people flocked to oracles and sought guidance.; today, Councils of Economic Advisers, IMF, OECD, Nobel prizes sustain perceptions that "macro- strology" and much else of what economists do is "science."

Putin 'Endorses' "Absolute Leader" Trump As Colorful, Talented Guy

Submitted by Tyler Durden on 12/17/2015 - 10:23 “He’s a really brilliant and talented person, without any doubt. It’s not our job to judge his qualities, that’s a job for American voters, but he’s the absolute leader in the presidential race.”

WTI Slides As Goldman Warns $20 Oil Looms, Crude Storage "Too Full For Comfort"

Submitted by Tyler Durden on 12/17/2015 - 10:06 Despite spoiradic algo-crazed ramps, crude oil prices continue to slide back towards a $34 handle (in Jan '16 contract) this morning following a reiterated downbeat note from Goldman warning that storage levels are "too full for comfort," that positioning is not as stretched short as some believe, and confirming that this will not end until prices near cash costs to force production cuts, likely around $20/bbl.

As A Hopeful Fed Hikes Rates, Americans' Economic Confidence Tumbles To 13-Month Lows

Submitted by Tyler Durden on 12/17/2015 - 09:54 Once again we ask The Fed, "why now?"

An Easy Silver Double

from Outsider Club:

Silver is cheap.
We thought it was cheap at $20 per ounce in 2013 and early 2014.
But that was only because silver prices north of $40 per ounce were still in our recent financial crash-laden memory.
Silver has actually been cheap for a year now. At least as measured relative to its golden big brother.
Right now, however, silver is extremely cheap
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High Treason- Why It’s So Important To Pursue Justice Against Crisis Actors

from The Sleuth Journal:

Are we too busy watching the show that no one has stopped to ask the question of- how can we track down and hold accountable the crisis actors which are destroying freedom in America and around the world? It’s a brand new narrative and it’s something truth and freedom lovers will have to tackle at some point in the near future if humanity is to survive the coming catastrophes. The need for an investigative body that will penetrate the secrecy of government to hold crisis actors (among others) responsible for their crimes is urgent. So let me be (one of) the first to say it. Crisis actors are just as guilty as those in power, especially over the past two administrations, who are committing crimes against humanity, and they must all be held accountable. It is time to view crisis actors in this regard from now on.
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The FOMC Meeting: Theatre Of The Absurd

by Dave Kranzler, Investment Research Dynamics:

Well, the “big” day has finally arrived. Since Bernanke’s infamous “taper” speech, there’s been an absurd amount of time, energy and resources spent by analysts, financial news television mannequins and bloggers discussing when and if the FOMC would take the unimaginably bold step of raising the Fed funds rate by 25 basis points. Into how much money does this translate? 25 basis points on $1 million is $2500. Laughable.
After the Fed deferred the life-shattering decision to nudge rates up slightly at the November meeting, the threats issued by various Fed officials became a daily occurrence. Given that the “bar” that was set to trigger the massive nudge up in rates was a 5% unemployment rate, the non-farm payroll report for November seemingly calcified the decision. The die is cast, the Rubicon has been crossed.
Meanwhile, every possible economic report, index and indicator originating from private sector sources show that U.S. economic activity is plunging at a rate last experienced in 2008-2009.
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Why the Fed Is WRONG About Interest Rates

from Washington’s Blog:

Richard Werner – an economics professor and the creator of quantitative easing – says that it’s a myth that interest rates drive the level of economic activity. The data shows that the opposite is true: rates lagthe economy.
Economics prof Steve Keen – who called the Great Recession before it happened – points out today in Forbes that the Fed’s rate dashboard is missing crucial instrumentation:
The Fed will probably hike rates 2 to 4 more times—maybe even get the rate back to 1 per cent—and then suddenly find that the economy “unexpectedly” takes a turn for the worse, and be forced to start cutting rates again.
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The Fed-Rate Hike: The Torpedo is Launched

by Jeff Nielson, Bullion Bulls:
Back at the end of 2008, in the heart of the crisis we now know as the Crash of ’08, Western central banks collectively engaged in perhaps the most extreme/reckless act in the modern history of our economies. They collectively took interest rates across the world to 0% or near-zero, and then held them there.
As has been explained to readers previously, such extreme interest rates are the economic equivalent of a defibrillator: a desperation-measure, intended to only be used as a Last Resort, and even then, only briefly. The cabal of Western central banks acknowledged this reality. All these central bankers promised – emphatically and unequivocally – to immediately normalize interest rates in early 2009.
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