Mylan CEO: "The US Healthcare System Bubble Is Going To Burst; This Is No Different Than The Subprime Crisis"

"My frustration is, the list price is $608. There is a system. I laid out that there are four or five hands that the product touches, and companies that it goes through before it ever gets to that patient at the counter. Everyone should be frustrated. I'm hoping that this is an inflection point for this country. Our healthcare is in a crisis, it's no different than the mortgage financial crisis back in 2007. This bubble is going to burst."

Subprime Auto Delinquencies Jump 17% In July, Net Losses Soar 28%

According to the latest Fitch auto subprime report, things in the auto subprime space are progressively deteriorating, with subprime 60+ day delinquencies rising 13% month-over-month (MOM) in July to 4.59%, and were 17% higher versus a year earlier.  Subprime ABS annualized net losses (ANL) hit 7.39% in July rising 17% MOM, and were 28% higher year-over-year (YOY).

Jackson Hole'd - A New Monetary Order Looms

The title of this year’s Jackson Hole meeting – “Designing Resilient Monetary Policy Frameworks for the Future” – is a telling one. It is actually a call to a specific goal, rather than the typical generic one. You get the feeling that the Fed has something on its mind... Translation: Fed projections have been wrong, and the central bank doesn’t know how to make them any better in the future.

Did Turkish President Erdogan Just Use A False Flag To Justify Invading Syria?

What we do know is that the targets of the attack were supporters of a political party that threaten Erdogan’s dreams of totalitarianism. We also know ISIS has not claimed responsibility for the attack, nor has Erdogan provided any evidence they were responsible, except to reiterate their alleged responsibility over and over. Don’t be surprised, therefore, if this attack is used as a further excuse to expand military operations against ISIS or some other group that Erdogan considers terrorists - or as a further move to target the Kurdish movement in Turkey and Syria. Oh wait, that literally just happened.

US Destroyer Fired Warning Shots At "Harassing" Iranian Fast-Attack Ship

A U.S. destroyer fired three warning shots after an Iranian fast-attack craft approached and circled two U.S. Navy ships and a Kuwaiti vessel in the northern Gulf on Wednesday. CNN reports that the U.S. ship fired the shots into the water after the Iranian ship did not leave after a brief radio conversation.

The Lack Of EpiPen Competitors Is The FDA's Fault

A firm cannot just willy-nilly raise their prices without a competing firm leaping in to give consumers what they want at a lower price. As it turns out, Mylan has a great friend who keeps would-be competitors out of the market, or at least makes it so difficult for them that they eventually go out of business. That friend is the FDA.

Rate Hike Jitters Return In Poor, Tailing 7Y Treasury Auction

And just like that the rate market's perception has shifted. Following two stellar auctions earlier this week, namely a blockbuster auction of 2Y and 5Y bonds, which saw such strong demand we concluded that nobody appeared to be concerned about tomorrow's Yellen testimony at least in the primary bond market. That, however changed moments ago when the Treasury sold $28 billion "belly", 7Y bonds, at a yield of 1.423%, tailing the When Issued by 1.3 bps, the first tail in this tenor since February.

The Lowest Vol In A Lifetime

In times gone by, of course, exceptionally low financial market volatility was a source of concern for policymakers.   Such conditions, they knew, were unlikely to last but might encourage behaviour that could threaten financial stability when the volatility regime and market risk premia normalized. Fast forward to today, and while there has been the occasional brief mention of the reach for yield, there's been nary a mention of the potentially pernicious problems posed by low volatility.

"Central Banks Now Own $25 Trillion Of Financial Assets"

  1. Central banks own $25tn of financial assets (a sum larger than GDP of US + Japan, and up $12tn since Lehman);
  2. There are currently $12.3tn of negative yielding global bonds (28% of total);
  3. There is currently $8tn of negative yielding sovereign debt (54% of total).