The Fed's Stunning Admission Of What Happens Next
Submitted by Tyler Durden on 01/17/2016 - 11:31
"The events of 1929 taught us that the absence of any rise in prices did not prove that no crisis was pending. 1937 has taught us that an abundant supply of gold and a cheap money policy do not prevent prices from falling."
"China Banks Seem To Be Doing Whatever They Can To Avoid Paying Anyone In Dollars"
Submitted by Tyler Durden on 01/17/2016 - 17:53
What has been going on lately? Well if there is a common theme, it is that China banks seem to be doing whatever they can to avoid paying anyone in dollars. We are hearing the following...
The State Of Our Denial Is Strong
Submitted by Tyler Durden on 01/17/2016 - 17:20
Well, things did 'change'...
What Just Happened With OIL?
Submitted by Tyler Durden on 01/17/2016 - 16:55
What's wrong with this picture?
Wells Fargo's Problem Emerges: $17 Billion In Junk Energy Exposure
Submitted by Tyler Durden on 01/17/2016 - 16:37
<Q - Mike L. Mayo>: What percent of the $17 billion is not investment grade?
<A - John R. Shrewsberry>: I would say most of it. Most of it.
<Q - Mike L. Mayo>: So most of the $17 billion is non-investment grade.
<A - John R. Shrewsberry>: Correct.
Here Is The Stealthy Way Some Are Betting On A Market Crash
Submitted by Tyler Durden on 01/17/2016 - 15:50
With the price of protecting against dramatic downside in equities soaring to record highs, it appears market participants are turning to a cheaper alternative in size...
Syria 4 Years On: Shocking Images Of A Post-US-Intervention Nation
Submitted by Tyler Durden on 01/17/2016 - 15:20
Cracks At The Core Of The Core
Submitted by Tyler Durden on 01/17/2016 - 14:50
It is the “Core of the Core” that now concerns us the most. That is where Federal Reserve (and global central bank) policies have left their greatest mark. It is at the “Core of the Core” where momentous misperceptions and market mispricing have become deeply entrenched. It’s the “Core of the Core” that has attracted enormous amounts of “money” over recent years. It’s also here where I believe leverage has quietly been used most aggressively. Over recent years it became one massive Crowded Trade. Now the sophisticated players must contemplate beating the unsuspecting public to the exits.
US Bank Counterparty Risk Soars After Energy MTM Debacle
Submitted by Tyler Durden on 01/17/2016 - 14:21
A few dots are starting to be connected now that we have exposed the debacle of The Fed's decision to allow banks to mark-to-unicorn their energy loans. "Something" was wrong in recent weeks as the TED-Spread surged (implying rising counterparty uncertainty among banks) and then the last week - since The Fed's alleged meeting with banks - has seen financial credit and stocks crash. 2008 all-over-again as "when in doubt, sell 'em all" is back for the US financial system.
JPM Explains How Crude Carnage Creates $75 Billion SWF "Contagion" For Equities
Submitted by Tyler Durden on 01/17/2016 - 13:50
"Assuming selling in accordance to the average allocation of FX Reserve Managers and SWF across asset classes, we estimate that the sales of bonds by oil producing countries will increase from -$45bn in 2015 to -$110bn in 2016 and that the sales of public equities will increase from -$10bn in 2015 to -$75bn in 2016."
Iran Unleashes Oil Flood, Will Quintuple Crude Revenue In 2016
Submitted by Tyler Durden on 01/17/2016 - 13:31
Iran is about to get a lot richer and according to President Rouhani, "everybody is happy except the Zionists, the warmongers who are fuelling sectarian war among the Islamic nation, and the hardliners in the U.S. congress."
Peak Desperation: Clinton Campaign Deploys Wall Street 'Strategist' To Attack Bernie Sanders
Submitted by Tyler Durden on 01/17/2016 - 13:16
Hillary Clinton’s campaign is absolutely imploding right now. When people get desperate, they do desperate things, and the latest move by the Clinton campaign reeks of putrid, panicked desperation. Of course, it makes perfect sense that Hillary Clinton, JP Morgan and Bank of America would share the same strategist. After all, they are the exact same brand.
Mid-East Massacre: Qatar Crashes, Saudi Stocks Plunge Most Since Black Monday
Submitted by Tyler Durden on 01/17/2016 - 12:41
Broad middle-east and african stock markets crashed over 5%, erasing any gains back to November 2008 as the carnage from last week continues. From Kuwait (-4.3%) to Qatar (-8%) it was a bloodbath as Saudi Arabia Tadawul Index plunged 5.4% - the most since Black Monday (now down over 50% from their 2014 highs). These losses are far in excess of US 'catch-up' moves and suggest a dark cloud over Asia this evening.
US Economy – Slip-Sliding Away
Submitted by Tyler Durden on 01/17/2016 - 12:13
It must be China. Or the weather, which is usually either too cold or to warm – somehow the weather is just never right for economic growth. Surely it cannot be another Fed policy-induced boom that is on the verge of going bust? Sorry, we completely forgot – the Fed is never at fault when the economy suffers a boom-bust cycle. "[An] oversold market can easily become more oversold when it keeps being inundated with evidence that economic conditions are not what they were thought to be."
Exclusive: Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears
Submitted by Tyler Durden on 01/17/2016 - 11:21
The Dallas Fed met with the banks a week ago and effectively suspended mark-to-market on energy debts and as a result no impairments are being written down. Furthermore, as we reported earlier this week when first nothing the rumor, the Fed indicated "under the table" that banks were to work with the energy companies on delivering without a markdown on worry that a backstop, or bail-in, was needed after reviewing loan losses would exceed the current tier 1 capital tranches.
