Senator Slams Obamatrade: "They Won The Vote, But Lost The Trust Of The American People"

"Americans increasingly believe that their country isn’t serving its own citizens... The same routine plays out over and again. We are told a massive bill must be passed, all the business lobbyists and leaders tell how grand it will be, but that it must be rushed through before the voters spoil the plan..  And when ordinary Americans who never asked for the plan, who don’t want the plan, who want no part of the plan, resist, they are scorned, mocked, and heaped with condescension."

Ku Klux Klan's Grand Dragon Says "A Lot Of The Whites In The U.S. Are Starting To Wake Up"

The riots that left Baltimore in ashes in late April and the massacre that occurred last week at the historic Emanuel AME church in Charleston serve as vivid reminders of the extent to which American society now teeters perpetually on the edge of social upheaval. "A lot of the whites in the U.S. are starting to wake up," Robert Jones, grand dragon of the Loyal White Knights of the Ku Klux Klan in North Carolina, tells Reuters.

We Are Reaching Peak Energy Demand, BP Data Suggests

Some people talk about peak energy (or oil) supply. They expect high prices and more demand than supply. Other people talk about energy demand hitting a peak many years from now, perhaps when most of us have electric cars. Neither of these views is correct. The real situation is that we right now seem to be reaching peak energy demand through low commodity prices.

Pentagon Brands 'Belligerent' Journalists As Legitimate "Enemy Combatant" Targets

The Pentagon has released an 1,176-page book of instructions on the "The Law Of War" detailing acceptable ways of killing the enemy. The manual also states that journalists can be labeled "unprivileged belligerents," an obscure term that replaces the Bush era "unlawful enemy combatant." The Obama Administration’s definition of "enemy combatant" was vague enough, basically meaning any male of a military age who "happens to be there," and this shift appears to make the situation even more dangerous.

In Historic Shift, Russia Overtakes Saudi Arabia As China's Number One Oil Supplier

We have argued that as economic ties between China and Russia deepen Beijing could increasingly look to Moscow to meet China’s energy needs. This would of course only serve to further de-dollarize the global energy trade, dealing yet another blow to the petrodollar system. Sure enough, Russia has, for the first time in history, overtaken Saudi Arabia as China’s top oil supplier.

Dangerous, Phony 'Gun-Control'-Logic Strikes Again

Look, it’s unfortunate to have to live in a world where there’s crazy people who want to do bad things. But it would be even more unfortunate to live in a world where we are regulated against being able to defend ourselves against those people... and the institution with the monopoly over ‘protecting’ us has a long-term track record of violence, intimidation, and abuse.

Abbott & Costello Explain The Unemployment Situation

COSTELLO: So there are two ways to bring unemployment down, and the easier of the two is to have people stop looking for work. ABBOTT: Now you’re thinking like an Economist.

COSTELLO:  I don’t even know what the hell I just said!  ABBOTT: Now you’re thinking like a Politician.

America - Land Of The Free (And Entirely Unaccountable)

The federal personnel chief said Tuesday that she does not believe “anyone is personally responsible” for the massive hack of federal employee data and security clearance files.

Translation - no one is accountable, it was a glitch.

Investors Sue Wall Street, Markit For Conspiring To Monopolize CDS Market

With a DoJ probe having predictably gone nowhere, a group of pensioners and retirement funds are suing Wall Street and Markit for colluding to monopolize the CDS market. Amusingly, Citadel has been subpoenaed to discuss how it was shut out of creating a CDS trading platform by the "oligopolistic" activities of TBTF banks, even as the firm looks set to dominate the market for IR swaps.

As The Nikkei 225 Spikes To 19 Year Highs; How Do You Say Deja Vu In Japanese?

With real incomes collapsing, approval ratings at record lows, and PMIs back in contraction; is it any surprise that the last thing standing for Shinzo Abe to "show" the world his 'progress' is the stock market... the all-knowing arbiter of monetary and fiscal policy-maker success (and completely divergent indicator of real economic health). To wit, overnight saw Japan's Nikkei 225 surged to its highest since Nov 1996 (up almost 150% since Abenomics devaluation was unleashed). The last time we saw such a surge brings a chill air to the conversation as Japanese stocks pass the halfway-back mark to 1989's epic bubble peak, it is begining to look a lot like peaking once again.

Greek Delegation Leaves EU Commission: No Agreement Today

So much for a Greek deal getting "done" today, as the market had priced in for the nth countless time on Monday. Here is what happened moments ago according to Bloomberg and Reuters:


And so on, until the next round of buying ahead of the next rumor, until the next denial launches stocks even higher, ahead of more hopes of an imminent deal launches even more buying program, until the next round of rumors leds to new all time highs and so on, and so on...

Carl Icahn Crushes CNBC's Perma-"Buy Stocks"-Bull$hitness

We suspect this will be the last time billionaire investor Carl Icahn is invited on CNBC. Having sold CNBC darling NFLX, he crushed the two main memes of CNBC's raison d'etre - buy stocks, because where else are you going to put your money - "what's better - making 2% or losing 30% as people did in 2008...right now it's an extremely dangerous time;" and the next leg of this bull market will come from an improving real economy - "the economy is not picking up, it is artificial due to low interest rates." The market has way over-estmated how long this will last, Icahn concludes, "keep your powder dry - why do have to own anything risky? It's just nonsensical."

Poor 5 Year Auction Despite Earlier Notable Collateral Shortage

One recurring pattern that we had noticed months ago, and which had a nearly 100% predictive hit record, was that on auction days when there is a major lack of collateral as evidenced by a negative repo rate, Tsy auctions were stellar. Today, was just such a day, with the 5 Year repo printing well special at -0.85% this morning as ICAP reported. All else equal this would have meant a big scramble to cover shorts into the auction and a high yield well tighter than the When Issued. Only not today. Because for all those who expected the yield to price through the when issued, the result was a surprising 1 basis point tail to the 1.700% W.I., with the auction of $35 billion in 5 Year bonds pricing at 1.710%.

EuroDollar 'Disturbance' Is Flashing Red In Junk Debt Markets

Stocks may be ignoring the 'dollar' and liquidity more broadly (at least as far as repurchases are concerned) but the continued stress in the eurodollar world has had an accumulating effect in some places. Primarily that has been shown in the once-thriving junk space, including more illiquid “products” like leveraged loans... By and large, there seems to be renewed concerns about liquidity, economy or both.