Slowly... Then All At Once

We’re on a collision course with these stark realities. The rackets and swindles unleashed in our futile quest to keep up appearances have disabled the financial operating system that the regime depends on.

How Low Oil Prices Failed To Stimulate The Economy

The 2014 plunge in oil prices was initially hoped to provide stimulus to the U.S. economy, with the Fed arguing that the average household would save $700 in fuel costs. A new paper from the Brookings Institution suggests otherwise.

President Obama Addresses 'Possible Terrorist' Bombings In NYC, NJ Allegedly By Man With Muslim Name - Live Feed

Having witnessed Hillary Clinton agreeing with Donald Trump's call for "tough vetting," before softball questions throwing him (and the Russians, somehow?) under the bus as responsible for inciting the bombings this weekend, we cannot wait to hear from President Obama as he desperately skirts the facts that someone created and set off numerous IEDs in populated areas (define terrorism) and that someone with a Muslim-sound name may (or may not) be responsible.

Syrian Ceasefire Collapses After Assad Slams "Naked American Aggression"

"Increased state support for terrorists hostile to Syria has recently presented itself in the form of naked American aggression against one of the Syrian army positions in Deir ez-Zor in favor of the interests of the [Daesh jihadist group]," Assad said and added that "countries hostile to Syria increase their support for terrorism as Syria succeeds in liberating territories and signing ceasefire agreements."

ICAP: "The Window Of Opportunity For A Fed Rate Hike Has Closed"

"The window of opportunity for a Fed rate hike has closed before the FOMC has a chance to meet, again" according to ICAP economist Lou Crandall who writes that there is “no doubt” that Yellen will say at her press conference that Fed expects to tighten over time; yet hard for Fed to be “overly hawkish” since September statement will need to explain why policy makers aren’t hiking this week.

JPM Pours Cold Water On The Apple Rally: "Positive Reaction From Carriers Premature"

The main reason why last week's market rout was not even worse, is because AAPL, the world's biggest company by market cap and a core pillar of both the S&P and Nasdaq, staged one of the biggest weekly rallies in years following reports of better than expected adoption and pre-order reports from carriers. However, at least according to JPMorgan, it was all a lot of noise and very little signal.

FBI Raids Building In Elizabeth, NJ

Just hours after a bomb explosion took place during a robotic attempt to disarm a home-made bomb after investigators uncovered five suspicious devices at a train station in Elizabeth, NJ, the FBI launched a raid at a building in Elizabeth.

Deutsche Bank Extends Losses Near Record Lows: "Significantly Undercapitalzied... Even Without Bad Outcomes"

Things are going from worse to worst once again for Deutsche Bank as equity and credit markets deteriorate further as analysts warn Germany's biggest (and the world's most systemically dangerous) bank would be "significantly undercapitalized" even if an eventual settlement with the DoJ can be covered by the bank's reserves. Despite multiple capital raises over the past few years, as Bloomberg notes, any likely settlement would imply a capital increase - just to pay the fine.

Key Events In The Coming Central Bank-Dominated Week

Central banks will take center stage this week, with the Boj and Fed within hours of each other, then also the RBNZ and Norges all delivering policy decisions. Of the four however, the BoJ will likely steal the spotlight, especially as we expect no changes in policy from the other three.

Bomb Explodes At New Jersey Train Station As Police Discover Five Explosive Devices

One day after an IED exploded in a busy midtown Manhattan sidewalk, an explosion took place at a train station in Elizabeth, New Jersey, after a suspicious backpack was found. The detonation was "not controlled", the city's mayor said. the FBI has questioned five people in connection with Saturday’s Manhattan blast.  Elizabeth's mayor, Christian Bollwage, said the blast occurred when authorities were trying to "disarm" the backpack, and that the explosion was not controlled.

Frontrunning: September 19

  • Global Stocks Rise, Buoyed by Commodities (WSJ)
  • For Yellen, a September Fed surprise could close confidence gap (Reuters)
  • Robot detonates New Jersey device in latest bomb discovery (Reuters)
  • Syria Truce Hangs in Balance Amid Attacks, Lack of Aid (WSJ)
  • Merkel’s Party Suffers Worst Berlin Loss of Postwar Era (BBG)
  • China’s Home Prices Rise Most in Six Years as Sales Gain (BBG)

Wells Fargo Sued By Customers Accusing It Of "Fraud And Reckless Behavior"

The bad news for Wells Fargo CEO John Stumpf keep getting worse. After it was reported that Stumpf was expected to testify before Congress this week, over the weekend we learned America's largest mortgage lender and until recently the largest bank by market capitalization, was sued on Friday by customers who accused the bank of fraud and recklessness for its behavior.

Global Stocks, US Futures Rebound As Oil Rises, Dollar Drops

Stocks across the board, and US equity futures are broadly in the green this morning as markets shrug off the terror-related events in the NYC area over the weekend.  There wasn’t a single positive “reason” for the green price action but fears about the bond “tantrum” appear to be fading while a stronger dollar helped push oil and the commodity complex higher.