Japan “is the best short in the world at the moment,” according to Shannon McConaghy's Horseman Capital who said that "I don’t have a price target, but I suspect that over the next few years, a number of banks will go to zero - as in bankrupt.”
With Rep. Hensarling threatening that the Wells Fargo debacle is "only in its 3rd inning," it appears today's Labor Department probe was enough to push CEO Stumpf over the edge as pressure mounts for his head. Effective today, John Stumpf has resign his position as the Federal Reserve Bank of San Francisco’s appointee to the Fed’s Federal Advisory Council.
DC Leaks' latest hacking victim is non other than White House staffer Ian Mellul who, apparently like everyone else in Washington DC, conducted all of his official White House business through his personal gmail account.
Unwittingly, the Fed has now become co-dependent on the markets. If they move to tighten monetary policy, the market sells-off impacting consumer confidence and pushes economic growth rates lower. With economic growth already running below 2%, there is very little leeway for the Fed to make a policy error at this juncture. Therefore, the Fed remains trapped between keeping the financial markets happy and trying to resolve their monetary dilemma. The problem is that eventually something has to give and it will likely not be the outcome the Fed continues to hope for.
"First off, our prayers are with law enforcement this morning. People are afraid. They see lunacy in the streets being perpetrated by criminals and they are gearing up to protect themselves," Justin Anderson, director of marketing for Hyatt Guns told Secrets.
"A recent investigation by Yahoo! Inc. (NASDAQ:YHOO) has confirmed that a copy of certain user account information was stolen from the company's network in late 2014 by what it believes is a state-sponsored actor. The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. "
Many voters, unaware of what they are truly asking for, pressure their politicians to just “do something.” In Alabama, Governor Bentley forbade “unconscionable prices for the sale of any commodity” in his State of Emergency proclamation. Governor Deal did the same in Georgia. The masses clamor for action, not realizing that the best course of action for our politicians is for them to just sit on their hands.
That did not take long. Just hours after a CNN report suggested that Wells Fargo was retaliating, and firing, company whistleblowers who had spoken out against the company's illegal "account creation" practices (while blaming them of being "tardy"), moments ago Reuters reported that Senators have asked the Labor Department to investigate Wells Fargo for potential violations of Fair Labor Standards
"I’m now firmly in the camp that not only will the Fed not raise this year – they may not raise again for years. For they are not only “painted into a corner” via their own misdoings – they are chained there by Wall Street. They’ve missed the window..."
"According to our estimates, selling from systematic strategies is now mostly completed. This is assuming that S&P 500 momentum stays positive, and that volatility does not significantly increase further. As the market bounced post Fed and September options expired, the large put option (gamma) imbalance subsided and is no longer pushing volatility higher."
Over the years, the “wealth effect” has been taken as a core component of monetary policy. Central bankers will not admit it, of course, but particularly stock prices are a central element of their strategy. But no matter how high especially stock prices go, there is no wealth effect – NONE.