Wednesday, March 9, 2016

Why This Sucker Is Going Down - The Case Of Japan's Busted Bond Market



The world financial system is booby-trapped with unprecedented anomalies, deformations and contradictions. It’s not remotely stable or safe at any speed, and most certainly not at the rate at which today’s robo-machines and fast money traders pivot, whirl, reverse and retrace. Indeed, every day there are new ructions in the casino that warn investors to get out of harm’s way with all deliberate speed. And last night’s eruption in the Japanese bond market was a doozy.


Deutsche Bank Goes "Searching For Liquidity;" Can't Find Any

"Liquidity" is a lot like health insurance. You don't need it until you do.
 




Missing Clinton E-Mail Claims Saudis Financed Benghazi Attacks

Something that has gone unnoticed in all the talk about the investigation into Hillary Clinton’s e-mails is the content of the original leak that started the entire investigation to begin with.


How To Trade Tomorrow's ECB Meeting

The European Central Bank promised in January to "review and reconsider" its monetary stance this week. The question, as BloombergBriefs notes, is not if policy makers will ease but how. Haruhiko Kuroda's humbling in FX markets shows what Mario Draghi is up against tomorrow: namely, that even the most forceful policy decisions can be overwhelmed by events, positioning, or sentiment. Draghi has a number of options (some more and some less priced in) but most crucially there two large gaps to be filled in European Stock indices - the question is which is filled first?





"You Want A Bloodbath?!" New Video Surfaces Of Police Shooting Oregon Protester In Back

"You back down or you kill me now. You want a bloodbath?"




Keith Olbermann Unleashes On Donald Trump: "I Am Moving Out Of Your Building"

"Okay, Donnie, you win.  I’m moving out.  Not moving out of the country — not yet anyway. I’m merely moving out of one of New York’s many buildings slathered in equal portions with gratuitous gold and the name “Trump.” Nine largely happy years with an excellent staff and an excellent reputation (until recently, anyway) — but I’m out of here."



Central Banks Are About To Leave Fiat Addicted Stock Markets In Agony

Many investors today are not very familiar with market history and tend to live only in the day-to-day mainstream narrative while watching little red and green graphs move up and down. This is not so much an issue in a relatively stable economic environment. The problem is, today we live in the most unstable economic conditions possible.



This Is Jeff Gundlach's Favorite (& Scariest) Chart

"...these lines will converge!"



China's Gamblers Ditch The Burst Stock Bubble, Return To Macau's Casinos

THe bursting of the stock bubble is hardly bad news, and certainly not for Macau, because now that China's habitual gamblers no longer have a market where to bet it all, they can finally go back to their original stomping grounds.



China Food Inflation Explodes To 4 Year Highs As Producer Prices Slump For 47th Straight Month

For the 47th month in a row, China's Producer Prices have fallen year-over-year - a record deflationary streak. CPI rose 2.3% YoY - the fastest pace since May 2014 (against expectations of a 1.8% rise in consumer prices, and at the upper end of the +1.5% to +2.4% range). PPI printed as expected with a  4.9% YoY plunge in producer prices (-4.5% to -5.5% range). However, what is most disturbing - from both a social unrest and economic-stimulus-hope basis, is that Food prices exploded 7.3% YoY - the most in 4 years.



Caution...Reading this will piss you off...Because it's true...

Guest Post: A Message To The Voting Cattle

"...your ignorance is not because the truth is not available to you, there’s been radicals preaching it for thousands of years. No, you are ignorant because you shun the truth with all your heart and soul. You close your eyes and run away when a hint of reality lands in front of you. You condemn as extremists and fringe cooks those who try to show you the chains you wear, because you don’t want to be free, you don’t even want to be human."



Presenting The Interactive Map Of European Refugee Assaults

A wave of sexual assaults allegedly perpetrated by men of “Arab and North African origin” caused Europe to cast aspersions starting in January. No longer were these “victims” fleeing the type of carnage that tragically befell Paris in November, they were suddenly transplants from a barbarous culture whose attitude towards women was outdated by hundreds of years.



The "Terrifying Prospect" Of A Triumph Of Politics Over Economics

All of life’s odds aren’t 3:2, but that’s how you’re supposed to bet, or so they say. They are not saying that so much anymore, or saying that history rhymes, or that nothing’s new under the sun. More and more 'they's seem to be figuring out that past economic and market experiences can’t be extrapolated forward - a terrifying prospect for the social and political order.



What Happens Next: These Six Catalysts Will Determine If The Market Surges Or Crashes

What are the “top trumps” that could send bond, credit and equity markets substantially higher or lower than currently expected? Here are the six "positioning, policy and profits" indicators that will determine the next leg in the market.


Doorways and Liquidity?

by Bill Holter, JS Mineset:
A very curious thing happened overnight in Japan, trading in their 10 year bonds was briefly halted. This was the result of a selloff that pushed yields from minus .10% up to minus .015%. The price move in the bonds was only .6%, so not a huge move but the circuit breakers were hit and trading stopped.
So why is this a big deal, or is it? First, the JGB market is second or third largest and most liquid in the world behind U.S. Treasuries and maybe Eurobonds. This sort of chaotic movement should not happen. More importantly, I believe the circuit breakers are so “tight” because a panic event can not be allowed to gain ANY momentum. Any “momentum in the wrong direction” at this point could easily become self reinforcing because of leverage or margin used to carry positions today. Please understand I am not picking on JGB’s as the same thing could be said of many if not ALL markets today as markets are so intertwined. The point we are driving at here is “volatility kills”!
Read More

Attorney General: Opioid Drug Abuse ‘Behind Upticks in Violence As Well As Violent Crime Using Guns’

by Susan Jones, CNSnews:
Attorney General Loretta Lynch told Congress on Wednesday that “one of the greatest hazards to both law enforcement and the people that we serve is an epidemic of gun violence.”
She also said opioid drug abuse is linked to “upticks in violence as well as violent crime using guns.”
Sen. Patrick Leahy (D-Vt.) asked the attorney general, “Do you see a connection between the growing opioid crisis and illegal firearms trafficking?”
Read More

VICE Editor Jokes About Trump Assassination To ‘Save America From Fascism’

by Paul Joseph Watson, Infowars:
VICE contributing editor and left-wing activist Molly Crabapple has become the latest public figure to joke about wanting to see Donald Trump assassinated.
Crabapple (who was born Jennifer Caban) responded to a viral video which shows a man at a Trump event surreptitiously feeding another man by tweeting, “I’m imagining them as stone cold operatives about to assassinate Trump – who are also adorably in love.”
She followed up with yet another tweet glorifying the would-be assassins as “a handsome married couple who are also assassins tasked with saving America from fascism.”
Read More @ Infowars.com

The Two Worlds of Precious Metals: East and West

by Jeff Nielson, BullionBullsCanada:
For five thousand years; gold and silver have been humanity’s premier forms of money, real “money”, not the faux-money manufactured by our central banks, which is mere currency. During that same period of time, these metals have been our premier instruments of wealth preservation, and thus our “safe havens.”
There is nothing accidental about this. To begin with, gold and silver have obvious aesthetic appeal. Indeed, silver is actually the more-brilliant of the two metals. It is this aesthetic appeal which makes these metals “precious”. But they are more than this, they are also (relatively) rare.
If diamonds were as common as pebbles, it would be impossible to impress one’s potential bride-to-be with such stones, even in a setting of gold. Diamonds have their value (both real and sentimental) not only because of their aesthetic qualities but also because of their perceived scarcity.
Read More

Babylon is Falling: A Rothschild Indicted for Fraud

from Orwellian Eye:
For anyone who doesn’t currently read alternative news, this will come as a surprise, but for those who have been keeping up with the myriad cabalistic shenanigans, this latest intelligence concerning the fall of the family Rothschild is a breath of fresh air in a choking smokescreen meant to confuse the sane among us.
Baron David de Rothschild could soon be locked up for a good long while in a prison cell, breathing stench of his own creation. He has been indicted over a fraud scheme brought to light by expatriates living in Spain.
French police have been directed by a judge to locate Rothschild to bring him in for questioning.
Read More

Major Meat Company Goes Antibiotic-Free After Charged with 33 Counts of Animal Cruelty

by Christina Sarich, Natural Society:
Largely in response to consumer demand, Tyson will be sourcing their pork meat from pigs raised without antibiotics. This could mean, by default, that Tyson’s pigs will be treated better. We shall see. [1]
This is a new trend, it seems, since just last year mega-companies like McDonald’s promised to move away from chicken raised with antibiotics, and would only use cage-free eggs.
Read More

Why We’re Ungovernable, Part 13: The Unprotected Push Back

by John Rubino, Dollar Collapse:

Peggy Noonan, former Reagan administration speech writer and current Wall Street Journal pundit has, like most of her peers, been wondering what’s gotten into the unwashed masses lately that makes them such unpredictable voters. And she’s come up with a useful conclusion: The rise of Donald Trump (and similar iconoclasts in other countries) is due to the gradual division of society into the protected — that is, people who make the rules and therefore benefit from them — and the unprotected, who don’t make the rules and end up getting screwed. The latter have finally figured this out and have stopped supporting the former. Here’s her latest OpEd piece, in its entirety:
Read More


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