Leaked E-Mail: CIA Director Says US Screwed Up On Iran After 9/11

"The gratuitous labeling of Iran as part of a worldwide “axis of evil” by President Bush combined with strong U.S. criticisms of Iran’s nascent nuclear program and its meddling in Iraq led Tehran to the view that Washington had embarked on a course of confrontation in the region that would soon set a kinetic focus on Iran. Even Iran’s positive engagement in helping repair the post Taliban political environment in Afghanistan was met with indifference by Washington."

The Real Trouble Begins When Rising Inequality Splinters The Elites

History supports two narratives of rising inequality leading to social disintegration and political instability: one is inequality between the top classes and everyone else, and the the other is rising inequality within the top classes. When the pie starts shrinking and there aren't enough slices to satisfy the rising expectations of the top class, the elites splinter in profound political disunity.

CEO Of Europe's Largest Zinc Producer Hints At Default: Bonds Hit Record Lows, Stock Plunges Most Ever

Complacency seemed ready to set back in, with Glencore stock recently rising as high as its recent equity offering price of 125p. And then today we noticed that not only is Glencore's CDS back above 700 bps, the widest it has been in three weeks, but that another mining company has fallen into the market's crosshairs, this time Belgium-based (with Zurich HQ) Nyrstar NV, Europe's largest refined-zinc producer, whose stock crashed the most since its initial public offering in 2007, while it bonds tumbled to a yield of 19%, suggesting a default may be imminent.

S&P Breaks Key Technical Resistance, Now What?

S&P 500 Futures just broke above the 200-day moving-average for the first time since August 19th. With crude, bonds, and credit all decoupled from this exuberance, one wonders what happens next... though clearly all-time highs will be required to enable The Fed to raise rates in October (currently a 6% probability)

Even Gartman Is Tired Of His Own Constant Flip-Flopping

"In recent weeks and months we’ve seen reversals in the equities markets time after time and far, far too often. They have become common rather than uncommon events and this is the problem we confront today. We are growing weary of doing so and we are making that weariness evident here this morning. Flipping back and forth does no one any good, but flip we must if history’s lessons are to be heeded."

Valeant Crashes Back Below $100 As Quebec Regulator Begins Investigation

Just when you thought it was safe to BTFD, Valeant is re-crashing. After bouncing back yesterday afternoon, reportedly thanks to Ackman "buying millions more shares," news this morning that Quebec's regulator is watching the Valeant situation "very seriously" and said in a statement that the "allegations are worrisome" and is checking to see if Valeant didn't run afoul of regulations, has prompted more bloodbathery in the stock, now down over 16%...

Deutsche Bank Warns Bonuses Will Be Slashed As Much As 30%

A beleaguered Deutsche Bank is set to slash the investment bank bonus pool by some $566 million as John Cyran's effort to right a sinking ship continues. As Bloomberg reports, "no decision has been taken and the biggest reductions are likely to impact employees in the fixed-income business. Some managing directors may have their entire bonus scrapped, according to the person."

Existing Home Sales Surge In September (Thanks To Massive Seasonal Adjustment)

September Existing Home Sales fell 6.5% from August, but you will not see that in the headlines as after adjustments for seasonals, existing home sales actually rose in September by 4.7%, bouncing back from a 5.0% revised lower drop in August (and beating expectatations of a mere 1.5% rise). 2015 has seen unprecedented volatility in the NAR's reported data, but a they note, "Unfortunately, first–time buyers are still failing to generate any meaningful traction this year."

US Leading Economic Indicators Tumbles Most In 30 Months

Missing expectations for the 3rd month in a row, US Lesading Economic Indicators (LEI) dropped 0.2% MoM. There has not been a bigger monthly drop since March 2013. Ironmically, initial jobless claims (which we have recently explained is now useless) was the largest positive contributor (after the yield curve steepness) but stock prices, average workweek, and building permits weighed heaviest.

Americans' Outlook For The US Economy Plunges Near 2013 'Government Shutdown' Lows

Since February, Americans have become less and less confident about the economic future of the country. As Bloomberg reports, National Economy Expectations tumbled to 42.0 - just above Sept 2014 lows and almost as weak as during the 2013 government shutdown. 2015's weakening streak is the worst consistent drop since 2011 (which unleashed moar QE) as Americans' spending attitudes tumble the most since May.

 

Hillary Clinton Faces The Music At Benghazi Hearing - Live Feed

In one of the most-watched hearings in historuy on Capitol Hill, former Secretary of State Hillary Clinton faces one of the biggest tests of her career – not to mention her presidential campaign – as she testifies before the Select Committee on Benghazi in the House of Representatives. This, of course, is not the first time, but one wonders if she will come out swinging with her "what difference does it make" persona, or be buried in the minutia of her private email server. As WSJ notes, the national response to the attacks that killed four Americans in Benghazi on Sept. 11, 2012, was complicated by secrecy, tragedy and national politics... and the people still want answers.

US Treasury Postpones Next Week's 2-Year Treasury Auction Due To Debt-Ceiling Roadblock

Moments ago the US Treasury promptly removed any latent optimism that this latest debt ceiling crisis will somehow be magically fixed on its own after it announced that it would postpone the two-year note auction previously scheduled for Tuesday, as the impasse over the debt limit constrains the nation’s borrowing. “Due to debt ceiling constraints, there is a risk that Treasury would not be able to settle the two-year note”

Bitcoin Surges To 3-Month Highs After EU Tax Ruling

Bitcoin has recovered all the losses from the volatility surrounding China's currency devaluation and Black Monday equity weakness as implicit capital controls drive the Chinese into alternative currencies (as we warned would happen). However, the last few days have seen the cryptocurrency surge to $280 - the highest in 12 weeks - as The EU's top court ruled bitcoin and other virtual currencies can be exchanged tax-free, putting them on a more equal footing with traditional cash.

Draghi Delivers Moar Promises - Stocks Jump As EUR, German Yields Dump

Surprise! A central banker promises moar of the same... and once again the goldfish-like-memory of market particpants forgets that this has all been priced in a thousand times and buys his bullshit. EUR dumped 150 pips to a 1.11 handle, 2Y German notes tumbled 6bps to -32bps, European and US stocks are surging (as USDJPY rises) and US Treasuries have reversed early gains amid equity gains.