The Defining Problem Of Our Times (In 1 Simple Chart)

Hyperinflation and hyper-deflation are just two different forms of the same phenomenon: credit collapse. Arguing which of the two forms will dominate is futile: it blurs the focus of inquiry and frustrates efforts to avoid disaster.”

Why Tomorrow It Could Get Even Worse

While today's market dump was certainly dramatic, it was a function of the scant liquidity in the market (as we warned would be the case first thing) and outsized moves following last week's mauling, not the result of any fundamental (or not so fundamental) news. That could change tomorrow, and change for the worse, because as Barclays reminds us, tomorrow is when the European Court of Justice (ECJ) is scheduled to hear testimony on the ECB’s non-existent Outright Monetary Transactions program (OMT). Recall that the OMT is the imaginary (again: non-existent) byproduct of Draghi's "whatever it takes" speech: a byproduct that was supposed to exist purely in the imaginary realm (as it was merely a verbal bluff, one which was never meant to be actually activated), and never actually take practical shape (hence, why the OMT's legal term sheet still does not exist, over two years later). Sadly for Draghi, and the entire Deus Ex theater that managed to send European peripheral bonds from record wides yields to record low, tomorrow it will attain some much dreaded shape.

Is This The Real Growth Scare That Markets Fear?

'Everyone' knows that the Japanese economy is weakening (apart from Abe and Kuroda obviously), 'everyone' knows that the European economy is tumbling towards another recession, 'most' know that China is really slowing (no matter what the magic of excel enables GDP to be)... and 'everyone' knows that the US economy is the cleanest dirty shirt, will decouple from the rest of the world, and thanks to endless extrapolated dreams, will lead the world to escape velocity. Except... recent macro data suggests otherwise...

The Fed's 2% Inflation Target: The Ultimate Keynesian Con Job

The old adage that if something is repeated often enough it is soon assumed to be true couldn’t be more apt with respect to the Fed’s 2% inflation target.  That Keynesian central bankers peddle this nostrum with a straight face is amazing in itself, but it is at least understandable because it gives them a reason to keep the printing presses humming. That journalists repeat it with no questions asked is even more remarkable. It proves that the impending replacement of financial journalists with robo-writers may not be so bad after all. It won’t make any real difference.

Manic-Buying Turns To Panic-Selling As 'Illiquid' Stocks Plunge To 5-Month Lows

Just as we warned, liquidity was incomprehensibly low today (below normal pre-market levels during the peak of the trading day) and the intraday whipsaws were meteoric as a closed cash bond market enabled the slightest twitch in USDJPY to send S&P algos into conniptions. Biotech crashed. Trannies were ripped ridiculously higher at the open - then collapsed into correction (-11% from highs); US Airlines have fallen for 6 straight days, crashing 17% (with today's 7% plunge - driven by chatter over airborne Ebola - its biggest in over years). Tresury futures implied a notable drop in yields across the curve (10Y -7bps at 2.21%, 30Y 2.97%, and 5Y 1.45%). The USdollar closed -0.33% led by EUR and JPY strength (but AUD surged 1% extending gains after China data).  Gold ($1234), Silver, and copper all gained on the day as WTI fell once again (despite some intraday strength in the middle of the day). Stocks "flash-crashed" on very heavy volume in the last 30 mins with VIX breaking above 24 (highest in 16 months). All major equity indices are now below their 200DMA with the worst 3-day loss since late 2011.

Emirates Flight Quarantined In Boston's Logan Airport Over Ebola Scare - Live Webcast

One of the reasons why the market sold off rapidly in the last hour or so, has been news out of Boston that an Emirates flights has been quarantined at Logan Airport, where as Fox Boston reports, according to the Massachusetts Port Authority, five passengers on an a flight from Dubai were experiencing flu-like symptoms. Crews are on the ground responding to the situation. Those passengers were not in West Africa, according to the agency.

Doug Kass: The Day The Market Died

"So bye bye to my piece of the pie... I poured my paycheck into the Russell, Now my cash account's dry...  It's just one month from a new all-time high, And now we're right back where we were in July..."

The 10 Biggest Energy Company Bankruptcies

Running a multi-billion dollar energy company isn’t easy. Just ask the executives in the corner suites of some of the energy companies that have gone bust over the years. Some, like Enron, were brought down because of insider malfeasance. A few, like ATP, blamed damaging government policies, while others went off the rails due to market forces that left the company and its shareholders flat-footed, deep in debt, and eventually broke. Here are the bankruptcies that will be etched into the tombstones of failed energy fortunes for time immemorial.

The Fate Of The "Free Market" Is In Their Hands

Of the 298 Bloomberg Terminal users that are currently registered with the New York Federal Reserve Board (according to Bloomberg Search), the great majority are "red" today - celebrating Indigenous People's Day we assume. However, while everyone's favorite "market intervenor" (sic), Kevin Henry, currently spearheading the NY Fed's Chicago office, remains "grey"- preferring not to share his status with the world after this - there are a few traders and analysts hard at work maintaining the status quo with "Trader/Analyst" Yan Chow appearing the most capable of holding up US stock markets without the aid of a bond market safety net.

Is The Bank Of England Giving The Market A Hint Of What's To Come?

Despite Bank of England's Mark Carney confident overtones that policy-makers must focus on economic developments rather than worry about potential market volatility as they consider exiting stimulus, it appears the esteemed central bank is communicating 'forward guidance' on its money-printing expectations over the next decade... BANK OF ENGLAND SIGNS 10-YEAR BANKNOTE PRINTING CONTRACT WITH DE LA RUE... starting in April 2015 (when US rate hikes might start?)


Chinese Car Sales Grow At Slowest Pace In 19 Months

According to Bloomberg, China’s vehicle sales grew at the slowest pace in 19 months in September as demand for trucks and buses slumped with the weaker economy. Total vehicle sales, which include passenger and commercial vehicles, rose 2.5 percent from a year earlier to 1.98 million units, the China Association of Automobile Manufacturers said today. That was the slowest pace since February 2013.

When Nothing Matters - Until It Does

A great many will rue the day when they bought into: “Pigs can fly,” “The markets are at these levels based on sound fundamentals,” “The Fed’s got their back,” and “Ebola is contained.” It is astounding just how far behind the curve many are finding themselves. Suddenly, almost everyone we meet is either doe-eyed, or worse, portraying signs of a deer stuck in the headlights. Today, everything is changing because the great masses whom many relate to as “the herd mentality” is now showing signs of great nervousness. And once this group gets spooked, it's over.

CDC Explains Why 3-Out-Of-4 US Nurses Feel Unprepared For Ebola - Live Feed

With three out of four nurses say their hospital hasn't provided sufficient education for them on Ebola, according to a survey by the largest professional association of registered nurses in the United States, it seems the Centers for Disease Control and Prevention (CDC) has decided its time to tamp down some more public fears over the contagiousness of this deadly disease... The CDC will provide an update on the response to the second U.S. Ebola diagnosis - the Dallas nurse who was infected while caring for a Liberian national in her hospital (supposedly due to her 'protocol breach')...