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 Stocks, Credit Risk Worsen Despite "Short-Squeezed" Yuan Strength
Submitted by Tyler Durden on 01/17/2016 - 20:27
On the heels of new reserve ratio regulations and the biggest strengthening in the Yuan fix in 4 weeks, offshore Yuan has strengthened notably (despite Chinese default/devaluation risk surging in the CDS markets). Chinese stocks are weaker in the early going but corporate bond yields continue to slide to new record lows as the "last bubble standing" stands ignorant of the risks around it.
Saudi Arabia Is Buying Up American Farmland To Export Agricultural Products Back Home
Submitted by Tyler Durden on 01/17/2016 - 20:00
The Saudis are explicitly conserving their own resources at home, while exploiting land and water supplies here in America. “We’re letting them come over here and use up our resources. It’s very frustrating for me, especially when I have residents telling me that their wells are going dry and they have to dig a lot deeper for water. It’s costly for them to drill new wells."
Wells Fargo Is Bad, But Citi Is Worse
Submitted by Tyler Durden on 01/17/2016 - 19:28
"While we are taking what we believe to be the appropriate reserves for that, I'm just not prepared to give you a specific number right now as far as the amount of reserves that we have on that particular book of business."
Japanese Stocks Enter Bear Market, Credit Risk Surges To 20-Month Highs
Submitted by Tyler Durden on 01/17/2016 - 19:19
"It’s difficult to see the fall stopping today," warned one Japanese equity strategist and rightly so as Japan's broad TOPIX idnex just entered a bear markets (down 20% from the August 2015 highs). With the Nikkei well below 17,000, Kuroda is due to speak at the Diet today as Japanese corporate bond risk surges to 20-month highs.
Foreign Central Banks Furiously Dump US Treasuries: Record $47 Billion Sold In First Two Weeks Of 2016
Submitted by Tyler Durden on 01/17/2016 - 18:58
According to the latest Fed data, after a drop of $12 billion in the first week of the year, another $34.5 billion in Treasurys held in custody was sold in the week ended January 13, bringing the total to just $2.962 trillion, below the previous recent low recorded in early November, and at levels not seen since April 2015. Adding up the flows from the first two weeks of the year reveals the worst and most custody holdings "outflowing" start to the year in history.
Here Is The Stealthy Way Some Are Betting On A Market Crash
Submitted by Tyler Durden on 01/17/2016 - 18:50
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...
Wells Fargo's Problem Emerges: $17 Billion In Junk Energy Exposure
Submitted by Tyler Durden on 01/17/2016 - 18:37
<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.
The "Putin Is Isolated" Meme Officially Dies As Japan Calls For Closer Ties With Russia
Submitted by Tyler Durden on 01/17/2016 - 18:30
“As chair of the G7, I need to seek solutions regarding the stability of the region as well as the whole world. I believe appropriate dialogue with Russia, appropriate dialogue with president Putin is very important.”
Oil Plunges To $28 Cycle Lows As Iran Supply Looms, Stocks Slide
Submitted by Tyler Durden on 01/17/2016 - 18:05
February WTI Crude futures have plunged to new cycle lows at $28.60 (down 2.7%) as Iran supply looms over an already over-glutted global crude market. Brent is down even more (-3.7%). Dow futures are down 60 points at the open.
"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?
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.
