Albert Edwards: "Let Me Tell You How This All Ends"

Submitted by Tyler Durden on 05/08/2016 - 19:50
The dollar's recent rapid slide has been accompanied by a constant backdrop of dovish cooing from the Fed. Until this week, SocGen's Albert Edwards notes that both equity and commodity markets had embraced the weak dollar as the elixir to solve all their ills. That relief, however, has now proved fleeting as fear of weak economic activity has reasserted its influence on investors. The weak dollar, Edwards warns, should be seen as merely a shuffling of deckchairs on the Titanic before the global economy sinks below the icy waves. 

These Are The 8 Triggers For A New Financial Crisis

Submitted by Tyler Durden on 05/09/2016 - 09:00 In reality, it will not be a single factor but an unexpected concatenation of events, that result in a financial crisis, driving global contagion and an economic slowdown.

Brazilian Stocks, Currency Tumble After Brazil House Chief Calls For Annulment, New Rousseff Impeachment Vote

Submitted by Tyler Durden on 05/09/2016 - 11:08 The story of Rousseff's impeachment took another unexpected, and sharp U-turn when moments ago, Bloomberg reported that the interim chief of Brazil’s lower house, Waldir Maranhao, accepted a request from the government's attorney general to annul the procedure that approved the impeachment motion in the house, according to reports from Folha de S.Paulo newspaper and Epoca magazine.

Trump On Debt Renegotiation: "You Never Have To Default Because You Print The Money"

Submitted by Tyler Durden on 05/09/2016 - 08:56 "If interest rates go up, we can buyback debt at a discount if we are liquid enough as a country. People say I want to default on debt - these people are crazy. First of all you never have to default because you print the money I hate to tell you, so there is never a default. It was reported in the NYT that I want to default on debt - you know I am the king of debt, I love debt, but debt is tricky and its dangerous. But let me just tell you: if interest rates go up and bonds go down, you can buy debt - that's what I'm talking about."

Who's Telling The Truth On American Jobs - The Fed Or The Government?

Submitted by Tyler Durden on 05/09/2016 - 11:07 For the fourth month in a row, Labor Market Conditions - according to The Fed - have contracted, the longest streak since the financial crisis. At the same time, despite having fallen from recent highs, the government's Labor Department proclaims non-farm payrolls continue to improve... because the narrative of consecutive monthly job gains must stand. The question is - who is telling the truth?

"Rigged... Not A Real Market" - What Market Pros (And Jim Cramer) Think About The Market

Submitted by Tyler Durden on 05/09/2016 - 10:51 Sometimes it’s nice to get a sanity check and hear other investors and market professionals views on how the stock market has changed over the past few years.  We hear more and more from various market participants that the market seems to be one big correlated beast that doesn’t trade on supply and demand anymore...

The Greatest Speech Ever (Is More Relevant Now Than Ever)

Submitted by Tyler Durden on 05/08/2016 - 19:30 Every now and then, it is good to refresh knowledge of what is truly important in life.

WTI Crude Tumbles To $43 Handle After Large Cushing Build

Submitted by Tyler Durden on 05/09/2016 - 10:35 On the heels of downward price momentum from positive headlines out of Alberta with regard the wildfires, Genscape has just reported a forecast 1.4 million barrel build at Cushing - significantly above expectations and recent activity. This has pushed WTI crude further below the pre-Saudi oil minister levels and back to a $43 handle...

Finally Good News For Canada's Raging Wildfire: Rain, Wind Conditions Push Blaze Away From Oil Sands

Submitted by Tyler Durden on 05/09/2016 - 10:13 Cooler weather on Monday will help in firefighters  battle to get the Alberta wildfire under control. The fire, which has destroyed about 620 square miles and has been nicknamed "The Beast", has been burning since May 1 and now has more than 100 water-dropping helicopters flying over it. After expecting the fire to double in size over the weekend, light rains and cooler temperatures helped prevent that from happening. "This is great firefighting weather, we can really get in here and get a handle on this fire, and really get a death grip on it," said Alberta fire official Chad Morrison on Sunday.



"Wrong Way Gartman"...

Stocks Jump, Oil Tumbles As Gartman Says "It Is Time To Buy Crude Oil And To Sell Equity Futures"

Submitted by Tyler Durden on 05/09/2016 - 09:52 "... it is time to buy crude oil and to sell equity futures, with the only problem now to decide how to weight the position; that is, do we sell equal dollar sums on both sides or do we weight the trade for “beta,” if there is such a thing for crude oil." - Dennis Gartman

China Commodity Carnage Spills Over To US Markets - Crude, Copper Clubbed

Submitted by Tyler Durden on 05/09/2016 - 09:35 WTI Crude prices have puked back all the "yay we have a new Saudi Oil Minister" algo-buying gains and even with just modest strength in the USD Index, the bloodbath overnight in Chinese commodity markets appears to be spilling over. Gold and Silver are also being punished as commodity currencies collapse.

Key U.S. Events In The Coming Week

Submitted by Tyler Durden on 05/09/2016 - 08:47 In the traditional post payrolls data lull, we’re kicking off what’s set to be a much quieter week for data this week with nothing of note due to be released in the US on Monday, however the week picks up with notable economic dataon NFIB small business cofidence, Import prices, PPI and culminates with Friday's retail sales report, UMichigan sentiment and business inventories.

BofA Says It's Time To Sell WTI Crude With A Price Target As Low As $35; Here's Why

Submitted by Tyler Durden on 05/09/2016 - 08:18 To Bank of America the relentless surge higher on algo-momentum driven buying has proven too much, and the bank's strategist Paul Ciana has come out with a new trading recommendation as follows: "Sell WTI Crude Oil: Sell crude oil into event driven stress at $45.75, stop at $48.25. Target market profile levels of $38.50 and possibly $35.25."

P2P Bubble Bursts? LendingClub Stock Plummets 25% After CEO Resigns On Internal Loan Review

Submitted by Tyler Durden on 05/09/2016 - 07:53 Moments ago all of our warnings about P2P lending were validated (quite painfully for those still long the company) and the Peer2Peer bubble may have finally burst, when as part of its Q1 earnings release, the board of directors announced that on May 6, 2016 it had accepted the resignation of Renaud Laplanche as Chairman and CEO. His resignation followed an internal review of sales of $22 million in near-prime loans to a single investor.

The Latest Casualty From Europe's Anti-Immigrant Surge: Austrian Chancellor Faymann Resigns

Submitted by Tyler Durden on 05/09/2016 - 07:18 Two weeks after Austria's dramatic result in its first round presidential elections which saw the right wing, anti-immigrant Freedom Party sweeping its competition, gathering over 35% of the vote and leaving the other five candidates far behind, moments ago Austria unveiled the latest casualty from Europe's anti-refugee, right wing revulsion when the country's Chancellor Werner Faymann resigned after losing the support of his colleagues in the Social Democratic party.

US Futures, Europe Stocks Jump On Oil, USDJPY Surge; Ignore Poor China Data, Iron Ore Plunge

Submitted by Tyler Durden on 05/09/2016 - 06:52 The overnight session has been one of alternative weakness and strength: it started in China where stocks tumbled 2.8% to a two month low following some unexpected warnings in the official People's Daily newspaper and poor trade data. Concerns about China, however, were promptly forgotten and certainly not enough to keep global assets lower, with European stocks gapping higher at the open and rallying from a one-month low, driven by a "surprising" surge in the USDJPY which has moved nearly 200 pips higher since its post-payrolls low. Another driver is the jump in oil, which rallied just shy of $46 a barrel, buoyed by Canadian wildfires that are curbing production and speculation that the Saudi Arabian oil minister succession will be bullish for oil prices.

Will "Inevitable USD Strength" Lead To Another Market Selloff

Submitted by Tyler Durden on 05/09/2016 - 06:02 With stocks the biggest beneficiary of the late January "Shanghai Accord", it stands to reason that the US Dollar was the biggest loser. Sure enough, overnight the WSJ writes that the "powerful rallies that have lifted stocks, crude oil and emerging markets for the past three months have one important thing in common - the falling dollar - and investors are growing anxious that it could prove to be the weak link." But is a strong dollar about to make another appearance and unleash the next leg lower in risk assets?

All Of A Sudden, Fish Are Dying By The MILLIONS All Over The Planet

by Michael Snyder, The Economic Collapse Blog:

Why are millions upon millions of dead sea creatures suddenly washing up on beaches all over the world?  It is certainly not unusual for fish and other inhabitants of our oceans to die.  This happens all the time.  But over the past month we have seen a series of extremely alarming mass death incidents all over the planet.  As you will see below, many of these mass death incidents have involved more than 30 tons of fish.  In places such as Chile and Vietnam, it has already gotten to the level where it has started to become a major national crisis.  People see their coastlines absolutely buried in dead sea creatures, and they are starting to freak out.
For example, just check out what is going on in Chile right now.  The following comes from a Smithsonian Magazine article entitled “Why Are Chilean Beaches Covered With Dead Animals?“…
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China's Crashing - Stocks, Commodities Plunge After "Top Authority" Implies "Abandoning Loose Policy"

Submitted by Tyler Durden on 05/09/2016 - 01:04 "After comprehensive judgment, our economic recovery cannot be U-shaped, cannot be V-shaped, but will be L-shaped," warns an 'authoritative' person according to a shocking report published by Government mouthpiece People's Daily. The report, explaining why investors should not expect growth to pick up soon or expect more stimulus to come soon further sets expectations for China to "face the issue of rising non-performing loans" and not continue to create zombie companies. The result -  a bloodbath in stocks and commodities...

Why Citi Is Worried: "This Is The Tipping Point"

Submitted by Tyler Durden on 05/08/2016 - 23:41

Hillary Doubles Down As FBI Probe Enters Final Stages

Submitted by Tyler Durden on 05/08/2016 - 23:30 "This certainly sends the signal that they are nearing an end to their investigation. ... It's very high-stakes. They're only going to ask her questions that they know the answers to already."

HSBC’s London Gold Vault: Is This Gold’s Secret Hiding Place?

Submitted by Tyler Durden on 05/08/2016 - 22:36 HSBC’s main gold vault in London regularly comes under the media spotlight for a number of reasons. These reasons include: a) the HSBC London vault stores a very large amount of gold on behalf of the well-known SPDR Gold Trust (GLD); b) along with the Bank of England vaults and JP Morgan vault, the HSBC vault is one of the 3 largest gold vaults in London; c) the location of the HSBC vault in London is not publicised and so the secrecy creates intrigue; d) HSBC every so often throws out some visual or audio-visual media bait about the vault, most famously in the case of CNBC’s Bob Pisani; Despite all of the above, no one seems to have ever tried to figure out where this gold vault is actually located. Until now.

The New Normal: Cold War 2.0

Submitted by Tyler Durden on 05/08/2016 - 22:00 We are all living in Hybrid War time. From R2P (“responsibility to protect”) to color revolutions, from currency attacks to stock market manipulations. From judicial-financial-political-media enabled “soft” coups – as in Brazil – to support for “moderate” jihadis, multiple stages of Hybrid War now cross-pollinate and generate a vortex of new mutant viruses. This is the new normal; Cold War 2.0, 24/7.

"The Death Of The Gold Market" - Why One Analyst Thinks A Run On London Gold Vaults Is Imminent

Submitted by Tyler Durden on 05/08/2016 - 21:22 We’ve argued for many years that a breakdown and bifurcation in the gold market between physical and paper gold substitutes would be necessary for accurate price discovery of physical gold bullion. The lead article in the January 2016 edition of the LBMA’s quarterly magazine was titled “Wholesale Physical Markets are Broken”, which might be confirmation that this process is reaching an advanced stage.

Obama: TTIP Necessary So As To Protect Megabanks From Prosecution

Submitted by Tyler Durden on 05/08/2016 - 21:00 On May 7th, Deutsche Wirtschafts Nachrichten, or German Economic News, headlined, "USA planen mit TTIP Frontal-Angriff auf Gerichte in Europa” or “U.S. Plans Frontal Attack on Europe’s Courts via TTIP,” and reported that, “America’s urgency to sign TTIP with Europe has solid reason: Megabanks must protect themselves from claims by European investors who allege that they were cheated during the debt crisis. … The U.S. Ambassador to Italy has now let the cat out of the bag on this — probably unintentionally.”

"Love The Communist Party" - China Threatens Its Entrepreneurs Not To Become "Trumpeters Of Western Capitalism"

Submitted by Tyler Durden on 05/08/2016 - 20:28 China’s entrepreneurs shouldn’t simply make money. They must “love the motherland, love the people, love the Communist Party, and actively practice socialist core values,” President Xi Jinping told businessmen in March. The latest to discover this is Ren Zhiqiang, a retired real estate tycoon who must serve a one-year probation for publishing “erroneous views” that “seriously violate the Party’s political discipline." A party member, he got in hot water after questioning the president’s call for tighter controls over the media.

If Everything Is So Great, Where Are The Unicorn IPOs?

Submitted by Tyler Durden on 05/08/2016 - 20:00 Over the course of the last week it seemed no matter where we turned in the business media one meme was being pushed above all others: It’s still a great time to be a private tech unicorn. Implying, that funding rounds were still “robust.” What wasn’t said, so we will, is this: It’s a great time to be a private “unicorn” rather, than take the chance and become the poster-child for the IPO apocalypse. For it’s better to be assumed a $BILLION dollar success story rather, than IPO and officially open the books to the market and remove all doubt – that you’re not.

Scientists Explain Why It Is Inevitable That America Will Be Hit By Absolutely Monstrous Earthquakes

by Michael Snyder, End Of The American Dream:
Have you noticed that the crust of the Earth is starting to become a lot more unstable? Over the past couple of months, major earthquakes have shaken areas all over the planet and major volcanoes have been erupting with a frequency that is more than just a little bit startling. Here in the United States, the state of Oklahoma absolutely shattered their yearly record for quakes last year, we just saw a very disturbing earthquake right along the New Madrid fault just recently, and as you will see below one scientist is telling us that the San Andreas fault in southern California “looks like it’s locked, loaded and ready to go”.
The name of the scientist that issued that very ominous warning is Thomas Jordan, and he is the director of the Southern California Earthquake Center. The following quote from Jordan comes from a Los Angeles Times article that was published this week that is getting a huge amount of attention right now…
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QUEEN PANICS: ‘Brexit’ Could Trigger WWIII, Warns David Cameron

from The Mirror:

David Cameron will plead for Britain to stay in the EU and help prevent the Continent being ripped apart by another conflict.
Mr Cameron will highlight the UK’s role in bringing peace to Europe as he hits thereferendum campaign trail.
Both the Prime Minister and his Brexit -backing Tory rival Boris Johnson make speeches this morning in the countdown to the June 23 vote.
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Can Rules Prevent Money Printing?

from Mises:

Today’s fiat dollar is created by two methods. One, the central bank (The Fed) creates new money when it purchases an asset. This money is credited to someone’s bank account, a liability on some bank’s books, and is matched on the bank’s asset side by new reserves held at the Fed. Two, these new reserves can be pyramided by the banking system’s fractional reserve rules into many multiples of new money. When the bank loans money, it creates a demand deposit on the liability side of its balance sheet, offset by the loan on the bank’s asset side. Historically, banks have been the biggest money manufacturers, due to the leverage effect of fractional reserve rules.
The moment of money creation: Notice that the banks’ ability to create new money depends upon the central bank’s power to create reserves. Therefore, we may consider that bank money creation is a secondary and dependent power, even though its impact on the money supply has been great. The moment of money creation is the central bank’s ability to print reserves.
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