Archives for May 2015

Mario Draghi’s Slippery Downward Slope

Courtesy of The Automatic Earth. Harris&Ewing F.W. Grand store, Washington, DC 1925 Mario Draghi made another huge faux pas Thursday, but it looks like the entire world press has become immune to them, because it happens all the time, because they don’t realize what it means, and because they have a message if not a […]

Behind The Scenes In FX Trading: What Is Really Going On

Courtesy of ZeroHedge. View original post here. Earlier this month we got confirmation of something we postulated back in April: that the primary source of revenue for Virtu (which, as a reminder, has had only one losing trading day in six years) is no longer equities but FX. Here’s what we said: Today, Virtu released […]

“New Silk Road” Could Change Global Economics Forever, Part 1

Courtesy of Robert Berke of Part 1: The New Silk Road Beginning with the marvelous tales of Marco Polo’s travels across Eurasia to China, the Silk Road has never ceased to entrance the world. Now, the ancient cities of Samarkand, Baku, Tashkent, and Bukhara are once again firing the world’s imagination. China is building the […]

Project Bookend: BoE Emails Guardian Top Secret Documents on Brexit, Including PR Notes on How to Deny the Project

Courtesy of Mish. Incompetence at Its Finest Here's a major laugh for a long holiday weekend in the US: Secret Bank of England taskforce investigates financial fallout of Brexit Bank of England officials are secretly researching the financial shocks that could hit Britain if there is a vote to leave the European Union in the […]

Rand Paul: Unleashing the American Dream

Courtesy of Mish. Those living in or near Chicago have the opportunity to hear Senator Rand Paul in a discussion about how to transform Chicago, the state of Illinois and the U.S. with liberty-based public policy solutions. Date:  Wednesday, May 27, 2015 from 12:30 PM to 2:00 PM (CDT) Location: The 1871 Center at the […]

How China’s (Formerly) Richest Man Destroyed His Own Fortune When He Tried To Sell A Stock

Courtesy of ZeroHedge. View original post here. On Wednesday, we reported on what was certainly the biggest market news of the week when in under one second, Chinese solar company Hanergy Thin Film crashed by nearly 50% due to what are still unknown reasons. As a reminder, before its crash and indefinite trading suspension, Hanergy’s […]

Dollar Bulls Regain the Whip Hand

Courtesy of Marc To Market The US dollar had a good week. Indeed, the Dollar Index's 3.3% rise was its best weekly performance since last September. After looking rather bleak, the divergence theme struck back with a vengeance.   ECB officials indicated that its sovereign bond buying program was turning more aggressive in the May-June period […]

Daily News

  Financial Markets and Economy JPMorgan: Something Has Gone Wrong With the Global Consumer (Bloomberg) "It would be difficult to overstate the recent downside surprise in global consumer spending," writes JPMorgan Senior Global Economist Joseph Lupton. Though retail sales in the U.S. have missed expectations for five consecutive months, disappointing consumer spending is far from just a made-in-the-USA […]

A Vision of Monetary Hell Troubles Our Sleep…

Courtesy of Bill Bonner  A vision of Hell troubles our sleep. It is the vision of what the United States will be like when the authorities have obliterated almost three millennia of monetary progress and have their boots on our necks. Here’s Peter Bofinger, a leading German Keynesian economist, in Der Spiegelmagazine: With today’s technical possibilities, […]

Yellen Yap: Point by Point Rebuttal

Courtesy of Mish Inquiring minds are reading Fed Chair Janet Yellen's Outlook for the Economy speech, delivered today at the Providence, Rhode Island Chamber of Commerce. Here are a few snips from what I believe to believe is a way over-optimistic assessment. I provide rebuttals following each statement. Yellen: The U.S. economy seems well positioned […]

Is Greece Still A Country If Someone Else Owns Its Assets?

Courtesy of John Rubino. This story isn’t actually about Greece, but it begins there. After the country went functionally bankrupt a few years ago, the solutions proposed by its creditors (mostly European banks and governments) included the impoverishment of its current citizens through cutbacks in wages and pensions, the impoverishment of its future citizens through […]

CPI Shows Sharply Rising Medical Costs; Huge Obamacare Hikes Planned

Courtesy of Mish. The CPI came in exactly in line with the Bloomberg Consensus option today. It’s the details, not the overall number that is worrying. Medical care and rents have been rising rapidly. The Fed likes to ignore food and energy costs. They have their chance to prove it. From Bloomberg … Pull forward […]

7 ideas completely lost on people who are “fiscally conservative but socially liberal”

To be "fiscally conservative/socially liberal" means overlooking many of the facts that make it impossible to separate social and fiscal issues. The following article discusses why the social and fiscal aspects of any political theory are so tangled that one is often just an unfortunate side of the other and why the relatively innocuous "fiscally conservative/socially liberal" position […]

Time To Get Real About China

Courtesy of The Automatic Earth. NPC Dedication of Francis Asbury statue, Washington, DC 1924 The present Chinese leadership appears to be trying to gain (regain?) more -if not full- control over the country’s economic system, while at the same time (re-)boosting the growth it has lost in recent years. President Xi Jinping, prime minister Li […]

DOJ Calls Out UBS Rap Sheet; Ignores Homegrown Citigroup’s Rap Sheet

Courtesy of Pam Martens. Assistant Attorney General, Leslie Caldwell, Speaking at Press Conference May 20, 2015 When the U.S. Department of Justice held its press conference on Wednesday to announce that five mega banks were each pleading guilty to a felony charge, paying big fines and being put on probation for three years, Assistant U.S. […]

Two Ominous Stock Market Charts

Courtesy of Pater Tenebrarum via A Big Dow Theory Divergence We briefly want to show a few charts that have caught our eye recently. This is by no means a comprehensive market update (we plan to provide one soon). Here is something though one doesn’t see all too often: the Dow Industrials and Transportation averages […]

Another US Foreign Policy Success: Isis Controls Half of Syria after Palmyra Seizure

Courtesy of Mish. Congratulations are in order for team Bush and team Obama for another stunning US foreign policy success: Isis Controls Half of Syria after Palmyra Seizure. Fighters from the Islamic State of Iraq and the Levant (Isis) have seized the Syrian city of Palmyra, home to a Unesco world heritage site, putting nearly […]


  Michael Santoli Interviews Ian Bremmer on Yahoo Finance. Outside the Box: Superpower By John Mauldin Ian Bremmer’s new book on the future of the US and geopolitics, Superpower, just hit the streets yesterday, and it’s already creating quite a buzz. It draws on Bremmer’s remarkable understanding of politics, America, and the world. I first ran […]

Why Bonds Are No Longer a “Safe Haven”

  Why Bonds Are No Longer a “Safe Haven” Courtesy of Bill Bonner Bonds: A Crowded Trade In the financial markets, we have been waiting for a crash of U.S. stock prices. And waiting. And waiting. It still hasn’t come. Last week the spectacular bull market in U.S. stocks that began in March 2009 continued with […]

Today’s News

Courtesy of Phil’s Stock World Click on this link to try Phil’s Stock World FREE!  Financial Markets and Economy Banks Will Keep Doing FX Stuff That Got Them in Trouble (Bloomberg) Here they’re doing that grumbling in letters to clients the day after their guilty pleas. There is no promise of reform here: The Justice Department caught […]

Existing Home Sales Lower Than Any Economist’s Estimate; Rising Supply a Good Thing?

Courtesy of Mish. Existing Home Sales Disappoint Economists overestimated existing home sales today, rounding out another impressive day of overoptimism. New home sales came in at a seasonally adjusted 5.04 million annualized rate. The Bloomberg Consensus Estimate was 5.22 million. 5.04 million was below the lower end of the consensus range of 5.10 M to […]

Philly Fed Region “Weak but Stable”; Kansas City Region “Declines More Sharply”

Courtesy of Mish. More weak economic reports came out today. Let’s take a look at two regional manufacturing reports. Philly Fed Region “Weak but Stable” The Bloomberg Economic Consensus for the Philadelphia Fed Business Outlook Survey was 8.0. Economists got the leading sign correct, but the consensus estimate was a tad high with the index […]

Public Confused Why World’s Biggest Banks Admitting Criminal Fraud, Leads To Public Yawns

  View image | Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. It was about two years ago when we summarized all the known and confirmed rigged markets. Libor – interest rates (link) ISDAfix – swaps (link) Platts – oil prices (link) WM/Reuters – FX (link) High-Frequency Trading – equities (link) […]

JPMorgan’s Jamie Dimon Deals With His Bank’s Felony Charge – Badly

Courtesy of Pam Martens. JPMorgan Tries to Claim It’s a Felon Because of One Bad Apple After more than 200 years of operation, yesterday JPMorgan Chase became an admitted felon. That action for foreign currency rigging came less than two years after the bank was charged with two felony counts and given a deferred prosecution […]