Wall Street Is One Sick Puppy

Courtesy of David Stockman via Contra Corner 

The robo-traders – both the silicon and carbon based varieties – were raging again yesterday in celebration of a “goldilocks” jobs report. That is, the headline number for April was purportedly strong enough to sustain the “all is awesome” meme, while [Continue Reading]

Atlanta Fed “Keeps Faith in Strong Recovery”

Courtesy of Mish.

Eyes on the Consumer

The Atlanta Fed Macrobblog has All Eyes on the Consumer.
It appears that the first quarter may have been even worse than we thought. The[Continue Reading]

Daily News

Let’s start the weekend reading off with some fun before we get serious. 


Jon Stewart sums up every NFL fan’s true feelings about DeflateGate (SB Nation)

Jon Stewart devoted eight delightful minutes of television to laughing with Gronk and at Tom Brady [Continue Reading]

The Downside Momentum has Stalled, but Does its Presage a Dollar Recovery?

Courtesy of Marc To Market

Three developments drove the dollar last week.  The eurozone bond market sell-off exhausted itself with the help of softer than expected German industrial orders and an outright decline in industrial output. The US jobs data bolstered arguments that what now looks like a [Continue Reading]

Deflation Works!

Courtesy of Bill Bonner at Acting-Man

The Coming Resolution

We’ve been exploring how the credit bubble resolves itself. Inflation? Deflation? Are we locked in to a long, long period of stagnation, slump and economic sclerosis?

Yesterday, we shared our research department’s forecast for the short term: Based on simple regression-to-the-mean logic, it [Continue Reading]

Illinois Supreme Court Rules 2013 Pension Reform Law Unconstitutional; Chicago Teachers “Insulted by 7% Pay Cut Offer”

Courtesy of Mish.

Pension news out of Chicago keeps getting worse.

In 2013, the Illinois legislature took a feeble stab at fixing some small aspects of the Illinois pension problem.

The legislation, signed by then Governor Pat Quinn reduced the 3 percent compounded cost-of-living adjustment for retirees established in 1989, [Continue Reading]

Britain: A Functioning Democracy It’s Not

Courtesy of The Automatic Earth.

Jack Delano Long stairway in mill district of Pittsburgh, Pennsylvania 1940

We at the Automatic Earth always try to steer clear of elections as much as [Continue Reading]

US Job Growth Recovers

Courtesy of Marc to Market

The consensus for a 226k increase in April non-farm payrolls got as close as reasonably possible to the [Continue Reading]

Clean Sweep by UK Conservatives Masks Huge Rifts

Courtesy of Mish.

The UK results are in. The pollsters could not have been more wrong. The expected result was a close vote and a hung parliament. Instead, Labour and the Liberal Democrats got pounded. Here are the Final Tallies from the Guardian.

[Continue Reading]

Mediocre Is The New Perfect

Courtesy of John Rubino.

Three things happened this morning: The Labor Department reported a big jump employment; the financial markets responded like kids on Christmas morning; and — with a few hours lag — level-headed analysts deconstructed the jobs report and found it to be mediocre at best.

To [Continue Reading]

Welcome To The Currency War, Part 19: Good Times For The Winners

Courtesy of John Rubino.

Most talk of currency war focuses on the problems caused by countries devaluing their money. This does indeed cause a lot of problems, especially long-term once everyone figures out the game and starts front-running it by preemptively dumping their currency.

But in the short run, [Continue Reading]

How to Dress for a Rainy Day

Outside the Box: How to Dress for a Rainy Day

By John Mauldin

Valuations are quite high and could spur financial instability, Janet Yellen told us yesterday. The question on the lips of the attendees at my recent Strategic Investment Conference was [Continue Reading]

Establishment +233K Jobs; Household +192K Employment, Part-Time Employment +198K, Labor Force +166K

Courtesy of Mish.

Initial Reaction

Today we see a snap back from last month's report on both establishment jobs and household survey employment. Last month the household survey last month came in at an anemic 34,000. This month it is 192,000.

Part-time employment went up by 198,000 meaning the entire [Continue Reading]

Daily News


Financial Markets and Economy

U.S. Unemployment Falls to Lowest Level Since May 2008 (Bloomberg)

Payrolls rebounded in April following an even bigger setback a month earlier than previously estimated, a sign companies are confident the U.S. economy will reboot after stagnating early this [Continue Reading]

Oil Price Recovery May Be Too Much Too Soon

Courtesy of Nick Cunningham at OilPrice

Oil prices have hit their highest levels in 2015, with WTI surging above $60 per barrel. Crude oil inventories in the U.S. declined for the first time since December 2014, perhaps indicating that the glut could be easing.

The EIA reported [Continue Reading]

Daily News

Financial Markets & Economy

The Fed Does Not Control the Money Supply (NY Times)

Brad DeLong points us to David Glasner on John Taylor; I don’t think I need to add to the pile-on. But [Continue Reading]

Resilience is The New Black

Courtesy of The Automatic Earth.

Harris&Ewing Happy News Cafe, “restaurant for the unemployed”, Washington, DC 1937

This is another essay from our friend Dr. Nelson Lebo III in New Zealand. Nelson is a certified expert in everything [Continue Reading]

The 10th Man: Übermensch

The 10th Man: Übermensch

By Jared Dillian

Elon Musk just unveiled something called the “Tesla Powerwall,” a means to store solar-created electricity in people’s homes… with the potential to put the entire utility industry out of business.

As you probably know, Musk [Continue Reading]

UK Election Shocker: Exit Polls Show Cameron’s Tories Do Far Better Than Expected, 10 Short of Outright Majority

Courtesy of Mish.

An exit poll shocker shows Cameron’s Tories Do Far Better Than Expected.

Heading into the election, the Guardian made this projection:

Conservatives 273
Labour 273
SNP 52
Liberal Democrats 27 [Continue Reading]

The Great Disconnect – Central-Bank-Driven “Markets” Have Nothing To Do With Economics

Courtesy of David Stockman via Contra Corner

The German bund yield soared like a rocket earlier today. After touching on the truly lunatic rate of 5 bps only a few weeks back, it has just crossed the 60 bps marker. Needless to say, when a blue chip 10-year bond [Continue Reading]

What’s Wrong With Factory Odors

Courtesy of Lee Adler of the Wall Street Examiner

Factory Orders for March came in at a seasonally adjusted headline number of a 2.1% monthly gain. That was in line with the Street consensus and a rebound from a drop of 0.1% in February. [Continue Reading]

Explaining UK’s Dysfunctional Voting System; Where is British Politics Headed? Horse Trading

Courtesy of Mish.

Early this morning in UK National Elections Underway: Expected Outcome is Hung Parliament I noted the dysfunctional nature of the election.

To recap, the expected outcome for the Scottish National Party (SNP) [Continue Reading]

3 Things: Trade, Confidence & Momentum

Courtesy of Lance Roberts via STA Wealth Management

The Warning Of Imports/Exports

At the beginning of 2015, I noted the divergence between the ISM manufacturing survey and the decline in both imports and exports:

"The surging dollar and [Continue Reading]

Daily News

Financial Markets & Economy

Guess Who Owns $1.1 Billion In Apple Stock (Zero Hedge)

The Swiss National Bank had a rough quarter in Q1 as the decision to abandon the increasingly unsustainable EURCHF floor (an event which marked an implicit admission that central [Continue Reading]