Art Cashin: This Is "What You Get Before You Slip Into A Crisis"
Submitted by Tyler Durden on 01/18/2016 - 10:55
"The Fed has painted itself into a corner... [the current situation's severity] is very similar to what you get before you slip into a crisis....The bumpy ride is probably not over yet... stay on guard."
The Fed Responds To Zero Hedge: Here Are Some Follow Up Questions
Submitted by Tyler Durden on 01/18/2016 - 13:06
Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount
Submitted by Tyler Durden on 01/18/2016 - 12:40
Italian bank stocks are crashing (with BMPS down 40% year-to-date) as Reuters reports that investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion) pile of loans that are unlikely to be repaid. The broad banking sector is down 4% with stocks suspended, and in light of this bloodbath, Italian regulators have decided in their wisdom, to ban short-selling of some bank stocks (which has driven hedgers into the CDS market, spking BMPS credit risk).
RANsquawk Week Ahead Video: Focus remains on China while ECB and BoC rate decisions loom
Submitted by RANSquawk Video on 01/18/2016 - 12:36Germany & The Incompatibility Of Cultures
Submitted by Tyler Durden on 01/18/2016 - 12:05
"The attackers might be politically motivated, but their fear can not be ignored. German society is changing, with right-wing Christian as well as Islamic groups getting stronger by the day. It is an alarming situation for the majority of secular people in Germany and Europe. What happened on New Year's Eve could change the way Germans live and treat foreigners forever."
Francois Hollande Admits Socialist Policies Failed, Declares "Economic State Of Emergency"
Submitted by Tyler Durden on 01/18/2016 - 11:30
Remember when showing 'progress' in Europe was as simple as pointing to your high stock market or low bond yields to "prove" everything is awesome. Well for Francois Hollande, the days of hiding behing manipulated data are over and the open kimono reveals a nation whose stability is wracked by record unemployment. In a desperate-for-re-election speech today, socialist leader Hollande admitted his policies needed reform and that France is an economic "state of emergency."
Glencore's "Investment Grade" Bonds Just Took Out September Crash Lows: Downgrade To Junk Imminent
Submitted by Tyler Durden on 01/18/2016 - 10:36
Glencore's 2021 bonds just hit a 5 year low, taking out the September crash levels, and trading at about 64 cents on the dollar. Following the recent junking of Noble Group which has sent its stock price to 12 year lows and hitning that a bankruptcy is now virtually inevitable, we expect Glencore to be junked any minute, with the ensuing cascade of margin and collateral calls testing just how "systematically unimportant" the world's largest commodity traders really are.
What Crisis Is The Gold/Oil Ratio Predicting This Time?
Submitted by Tyler Durden on 01/18/2016 - 10:30
What happens next?
Negative Oil Prices Arrive: Koch Brothers' Refinery "Pays" -$0.50 For North Dakota Crude
Submitted by Tyler Durden on 01/18/2016 - 10:20
Do you have some extra space in your garage or attic? Or perhaps you own an oil tanker you aren’t currently using. Or maybe you have a storage unit that’s got a little extra room next to an old mattress and box springs. If so, you may want to call up oil producers in North Dakota and ask if they’d care to send you some free oil.
What's Eroding The Middle Class?
Submitted by Tyler Durden on 01/18/2016 - 09:47
A society without a functioning middle layer of economic and social activity is not stable, though repression can mask this for a time. This erosion of a self-employed, independent middle class was an important pre-condition for the collapse of Rome and the French Revolution. There is zero evidence that any of the drivers of this erosion is going to reverse.
Dow Dumps 150Pts Off Morning Highs As Oil Bounce Dies
Submitted by Tyler Durden on 01/18/2016 - 09:11
Remember when oil was in the green (because Iran was "priced in") and stocks were in the green (because China was "fixed") this morning? Well, that's over. The dip-buying algo's reflex has run the stops, filled the gaps to unchanged and now stocks and crude are turning lower once again.
Wall Street Reacts To The Lifting Of Iran Oil Sanctions
Submitted by Tyler Durden on 01/18/2016 - 08:37
After years of U.S. sanctions, Iran is now free to export as much of its oil as it wants after the International Atomic Energy Agency said the country had curbed its ability to develop a nuclear weapon leads to lifting of international sanctions. And while the end of sanctions also opens the door to foreign investors into country’s oil sector, most importantly it allows the country to flood the world with its oil. As a result the first thing the Iran oil ministry did today was to issue a notification order to boost oil production by 500k b/d.Below, courtesy of Bloomberg, is a summary of the world's, and Wall Street's reactions, to the lifting of the Iran oil embargo.
Equity Futures Rise After Oil Rebounds From 12 Year Lows; US Markets Closed
Submitted by Tyler Durden on 01/18/2016 - 07:51
With the US closed today for Martin Luther King Holiday, global risk tone has once again been set entirely by oil, which opened sharply lower at fresh 12 year lows on fears of an Iran oil glut, but has steadily rebounded on the latest OPEC comments, and at last check both WTI and Brent were unchanged trading in the low $29's on muted volume. With Asian markets mixed, European shares swung between gains and losses, while the yen weakened as China stepped up efforts to curb foreign speculation against its currency. Crude oil rose from a 12-year low after the Organization of Petroleum Exporting Countries forecast a decline in supplies from rival producers.
Japan's Nikkei Closes Below 17,000 As Hong Kong Money-Markets 'Break' Again
Submitted by Tyler Durden on 01/18/2016 - 02:44
With Hong Kong Dollar spot little changed (but pressing the weaker end of its peg band) and 12-month forwards suggesting notable weakness/depegging to come, it appears that the Hong Kong interbank lending debacle is far from over. While overnight money appears stable, 1-week Yuan HIBOR is up 370bps at 11.90%, and 1-month and 3-Month HKD HIBOR just snapped higher ( to Jan 2013 highs and July 2010 highs respectively). It appears comments from Hong Kong Monetray Authority's Norman Chan that it's just a matter of time before outflow of funds lead to the local currency hitting the low end of the peg sparked heavy medium-term demand for liquidity. Offshore Yuan is crepping back weaker (as is crude) after an early bounce but NKY ended below 17,000 - for the first time since September.
Doug Casey: Why Do We Need Government?
Submitted by Tyler Durden on 01/17/2016 - 22:00
Throughout history government has served as a vehicle for the organization of hatred and oppression, benefitting no one except those who are ambitious and ruthless enough to gain control of it. That’s not to say government hasn’t, then and now, performed useful functions. But the useful things it does could and would be done far better by the market.
