The Bubble Finance Cycle - What Our Keynesian School Marm Doesn’t Get, Part 1

The world of Bubble Finance economies created by the Fed and other central banks is fundamentally different than that prevailing under the “Lite Touch” monetary policies which preceded the Greenspan era. The problem today is that the PhDs running the Fed have an economic model which is a relic of the Lite Touch era. It is not only utterly irrelevant in today’s casino driven system, but is actually tantamount to a blindfold. It causes them to look at a dashboard full of lagging indicators like jobs and GDP components, while ignoring the explosive leading indicators starring them in the face on CNBC. The clueless inhabitants of the Eccles Building do not recognize that they have created a world in which Wall Street supersedes main street.

A Warning For Bears: Gartman No Longer "Aggressively Bullish", Is "Forced To The Sidelines"

"We fear we have been bullish over the course of the past several weeksindeed rather aggressively so… and did not pay sufficient heed to the warning signs of lesser volume.  We are not wise enough to say that a bear market is now upon us, and indeed we are wise enough NOT to say that but discretion is the far better part of valor and the safety of the sidelines after several weeks of real bullishness on our part is to be sought."

- Dennis Gartman

Key Manufacturing Industry Crumbles To Post-Crisis Lows

The past few weeks have brought a resurgence of the deflation theme. All matters of commodities and their associated equities have, to varying degrees, resumed the selling pressure that has characterized much of the past 18 months. The aluminum industry is no exception. In fact, using the Dow Jones U.S. Aluminum Index as a gauge, aluminum stocks closed today at their lowest levels since April 2009.

"Oil Bears May Not Hibernate" As Inventories Swell To Record 3 Billion Barrels

In true stop-running algo common sense, WTI crude jumped overnight, back above $42 briefly. However, a double whammy of warnings from IEA (of a "massive cushion" of 3 billion barrels worldwide) and the highest volume of supertankers for this time of year since 2013 has sent crude sliding back below $42.

"Jihadi John" Hit By US Drone Strike; "We're 99% Sure We Got Him," Pentagon Says

In the latest attempt by Washington to prove that the US isn't entirely useless in the fight against terrorism, The Pentagon cliams an MQ-9 reaper drone strike likely killed "Jihadi John," the Kuwaiti-born Brit who became the early face of ISIS after appearing in a series of beheading videos depicting the death of Westerners. 

Futures Extend Slide; Europe Has Biggest Weekly Drop In 2 Months; Commodities At 16 Year Lows

For once, the overnight session was not dominated by weak Chinese economic data (which probably explains why the Shanghai Composite dropped for the second day in a row, declining 1.4%, and ending an impressive run since the beginning of November) and instead Europe took the spotlight with its own poor data in the form of Q3 GDP which printed below expectations at 0.3% Q/Q, down also from the 0.4% increase in Q2, with several key economies rolling over including Germany, Italy, and Spain while Europe's poster child of "successful austerity" saw Q3 GDP stagnate, far worse than the 0.5% growth consensus expected.

Did Russia Just "Gently" Threaten The USA?

A major Russian TV channel just aired a report about Putin meeting with his top military commanders, and pointed out what the Kremlin said was a mistakenly leaked secret document, which showed drawings of a "new nuclear submarine weapons system." This so-called “leak” of “secret documents” is, of course, no leak at all.  This is a completely deliberate action. 

Get Ready For Crazy

Some First World governments have taken a decidedly Third World turn.

How To Know If You're A Fascist - Lessons From Yale & Mizzou

The video that emerged this week of Yale students screaming down one of their professors might make for a good laugh, if its implications were not quite so serious. It’s a scene we’ve seen played out far too often at college campuses in recent years, and it deserves to be called by what it is: a nascent form of fascism.

Another Bubble Bursts: Ultra Luxury London Home Prices Tumble 12%

“The bubble may already have burst” for the most expensive homes, Barber said. Now, "36 percent of all properties currently on the market across prime central London are being marketed at a lower price than they were originally listed at, with the average reduction in price being 8.5 percent."