Puerto Rico Faces Default, Government Shutdown On July 1

Puerto Rico is racing the clock ahead of a July 1 deadline to pass a fiscal budget for 2016 and scrape together $360 million due to creditors. Without a budget, the commonwealth will face a partial government shutdown and may be unable to issue $2.9 billion in oil-tax bonds needed to pay The Government Development Bank.

79 Members Of Congress Have Been In Office For At Least 20 Years

No wonder Washington never changes – 79 members of Congress have been there since Bill Clinton’s first term in the White House.  This list includes names such as Reid, Feinstein, McConnell, McCain, Pelosi, Boehner, Rangel and Boxer.With a 15% approval rating, The American People absolutely hate the job that Congress is doing, and yet the same clowns just keep getting sent back to Washington again and again.

Graphing The Evolution Of The World's Debt Addiction

"The borrowings of governments, households, companies and financial firms have risen in almost every big country around the world since the year 2000, relative to their GDP," The Economist notes. Here, graphed, is the evolution of the world's debt addiction from 2000 to 2014.

The End Of Meaningful Work: A World Of Machines And Social Alienation

Many activists are clamoring for a higher minimum wage. That's an admirable goal, but is that where the worst problem is? Even at the abysmally low wages of the present moment, we still have 938,000 people being turned away from McDonald's because there aren't enough McJobs. The real problem is the lack of meaningful work. In a world of machines and social alienation, meaningful work is as scarce as water in the drought-stricken California Central Valley.

Meet "The Most Bearish Investment Manager You Will Find Today"

"...stocks are the side show of the world. They shouldn't matter that much. They matter too much. They're the realm of punters, the realm of hair-trigger traders... We are back to "a religious belief" that The Fed is our savior... the market doesn't owe you liquidity, thinking you'll get out is the height of naivete."

City Secure? Baltimore Is Averaging 1.3 Murders Per Day Since Riot

The widespread riots, looting, and indiscriminate arson may have subsided in Baltimore, but the violence has not. As The Washington Post reports, "from mid-April to mid-May, 31 people were killed, and 39 others were wounded by gunfire. Twice, 10 people were shot on a single day."

The Last Two Times This Happened, Stocks Crashed

According to Tobin's Q, which compares stock prices to the replacement value of companies' underlying assets, equity markets have become detached from reality to a degree only witnessed on two occasions in history: the tech bubble and 1929. 

Dead Nation Walking

Many people seem to think that America has lost its sense of purpose. You don’t have to seek further than the USA’s sub-soviet-quality passenger railroad system, which produced the spectacular Philadelphia derailment last week that killed eight people and injured dozens more. Six days later, we’re still waiting for some explanation as to why the train was going 100 miles-per-hour on a historically dangerous curve within the city limits. The condition of our trains is symptomatic of the shape of the nation.

Why The Little Liesman Econ Achievers "Just Love Keynes"

Curious about the economic fate of the US? Here it is:

Q. Steve Liesman: Who is your favorite economist?
A. Nat'l Economics Challenge participant #1: Keynes. I just love Keynes.
A. Nat'l Economics Challenge participant #2: I do too, because he spends a lot of money.

And proud we are of all of them.

Financial Execs Urge Fed To Rein In "Over-Exuberance... Hangover Will Be Difficult To Cope With"

In a stunningly honest turn of events - though likely self-preserving - a number of senior financial services executives are reportedly urged authorities around the world to bolster their crisis-busting arsenals amid fears that ultra-low interest rates have increased the risks of financial instability. As The FT reports, the heads of companies including HSBC, UBS and BlackRock will on Monday release a joint statement demanding policy-makers "address emerging market inefficiencies in the financial system, such as over-exuberance within asset classes." Policy-makers must “lean against something that is making people feel good but is actually going to give them a hangover they will find difficult to cope with."

The San Francisco Fed Just Gave A Green Light For A June Rate Hike

The punchline from the most recent San Fran Fed "research" paper is that since Glenn "double seasonal adjustment" Rudebusch is one of Yellen's favorite hometown economists, she now has the green light to completely ignore the weakest economic print since last Q1, and to focus entirely on the best economic print in the US: the surge in part-time senior citizen workers, pardon, the "zero slack" unemployment rate of 5.4%. She also has the justification why to ignore it: the bad data wasn't seasonally adjusted enough (the good data was seasonally-adjusted just right).

Atlanta Fed 2 - 0 Wall Street Optimists: Q2 GDP Expectations Crash

Who could have predicted this? Wall Street's consensus crowd of perennial optimists have taken the machete out to Q2 GDP growth expectations (just as they had to when Q1 showed them all for the worse weather forecasters ever). The tumble in Q2 expectations brings Wall Street once again, closer to where The Atlanta Fed's GDPNow model forecast is... a mere 0.7% growth... and drags total 2015 growth well below trend.

David Stockman: "We Are Entering The Terminal Phase Of The Global Financial System"

"What happened in each of those episodes was a short-run break in the system, collapse of confidence and flight to gold.  What I think we are facing now is a terminal phase of a monetary system that isn’t viable, stable or sustainable.  Therefore gold has but one characteristic - massive upside in the years ahead."

Investors Are Trapped In A "Twilight Zone", BofAML Warns Of Looming C.R.A.S.H. Risks

Episodes of “corrections” are apparently happening more frequently according to BofAML's credit strategist Barnaby Martin and given the extremities of liquidity, profits, technological disruption, regulation, and income inequality, BofAML warns 'gently' that the potential for a cleansing drop in asset prices cannot be dismissed. Most likely catalysts: Consumer, Rates, A-shares, Speculation, High Yield. "We advise selling risk into strength, buying volatility into weakness, advocate higher than normal levels of cash and would add some gold."