Capex Recovery Is Worst In History, BofAML Says

"In the United States, it took 18 quarters (4.5 years) before fixed business investment regained its pre-recession peak, in chain-volume terms. That compares with an average of just five quarters before business investment recovered to its peak level prior to the onset of previous post-War recessions; previously, it had never taken longer than three years for that milestone to be attained."

SEC Reads Zero Hedge, Launches Crack Down On Activist Hedge Fund "Idea Dinners"

Ten months after we asked whether "The SEC Is Asking These Hedge Funds Why They All Rushed Into Allergan Last Quarter?" we find that the US market regulator indeed reads this website on a regular basis. As the WSJ reports the SEC has answered our question, and yes: the  SEC is finally asking not only "these" hedge funds why they all rushed into Allergan, but into every other collusive activist take out target.

America, The Ponzi Scheme: A Commencement Speech For The Scammed

Many of you undoubtedly think that your education is now over and it’s time to enter the “real world.”  I have news for you: you’ve been in that world for the last four years, hence the debt you’re dragging around behind you.  So, on a day when the sun’s in your eyes and it couldn’t be more apparent that the world’s not what you’ve been told it was, maybe you should apply the principles of the scam artist to the world you’re about to enter.  Unless you do so, you’ll simply be scammed again in the next phase of your life.

EU's Junker Snubs Greek Prime Minister, Declines Phone Call

If Greek PM Alexis Tsipras is serious about sticking with the mandate that got Syriza elected, he got a rude awakening on Saturday when, insulted by the PM’s fire and brimstone speech to parliament, EU Commission President Jean-Claude Junker refused a meeting, noting that if Tsipras is serious about going down with the ship, there’s nothing left to talk about.

Awkward: Day After EPA Finds Fracking Does Not Pollute Water, Top Oil Regulator Resigns Over Water Contamination

Put this one in the awkward file: just hours after the EPA released yet another massive study (literally, at just under 1000 pages) which found no evidence that fracking led to widespread pollution of drinking water (an outcome welcome by the oil industry and its backers and criticized by environmental groups), the director of the California Department of Conservation,  which oversees the agency that regulates the state's oil and gas industry, resigned as the culmination of a scandal over the contamination of California's water supply by fracking wastewater dumping.

Table 9

It’s the breakdown of jobs by age that really screams out. It is a known fact that people in the 45 to 54 age bracket are in their prime earning and spending years. In the last year the number of employed 45 to 54 year olds has DECLINED by 67,000. It DECLINED in May by 51,000. It has DECLINED by 187,000 since February. It is a known fact that people over 55 dramatically reduce their spending as they approach and enter their retirement years. The Boomers have added 824,000 jobs in the last year, or 28% of all the new jobs added.

California Begins To Rip Up Lawns Because "The Whole Damn State [Is] Out Of Water"

One way to ensure that Californians cut back on watering their lawns is to simply encourage households to remove the grass altogether and replace it with something that needs far less water — like rocks. "California’s love for lawns is wholly unsuited to the state’s dry climate," one professor tells The Guardian. It's an “'inherited historic aesthetic' that comes straight out of the British Empire."

Capital Controls Explained: Argentina Edition

When governments find themselves in financial trouble because of the stupid decisions that they’ve made, their first response is to award themselves even more power to make even stupider decisions. And among the stupidest decisions that any government can make is imposing capital controls… something that Argentina has in abundance.  Capital controls are like the Matrix; you can’t really explain what they are. You have to show people. Argentina does not disappoint.

"Einstein" Fooled By "Chinese" Hackers In Massive Government Data Breach

"The hackers who stole personal data on 4 million government employees from the U.S. Office of Personnel Management sneaked past a sophisticated counter-hacking system called Einstein 3, a highly-touted, multimillion-dollar and mostly secret technology that’s been years in the making [but is] already obsolete," Bloomberg says. Unfortunately, bureaucratic delays, Presidential pettiness, and Congressional paralysis likely mean no improvements are forthcoming.

A Hopeful Edward Snowden Says "The Balance Of Power Is Beginning To Shift"

"The balance of power is beginning to shift. We are witnessing the emergence of a post-terror generation, one that rejects a worldview defined by a singular tragedy. For the first time since the attacks of Sept. 11, 2001, we see the outline of a politics that turns away from reaction and fear in favor of resilience and reason. With each court victory, with every change in the law, we demonstrate facts are more convincing than fear. As a society, we rediscover that the value of a right is not in what it hides, but in what it protects."

A Very European Episode

It is not so much that Greece and other nations are facing severe financial difficulties. At the end of the day, most man-made problems are solvable, especially in finance. What truly worries us is that this widely diverse group is required to come up with robust solutions to very sensitive political and economic problems, with wide reaching implications. Accordingly, this Greek saga has been going on for five years, and we are now deeply in the realm of unpalatable solutions – if indeed one can actually be found.

Greek Banks On Verge Of Total Collapse: Bank Run Surges "Massively" As Depositors Yank €700 Million Today Alone

While the Greek government believes it may have won the battle, if not the war with Europe, the reality is that every additional day in which Athens does not have a funding backstop, be it the ECB (or the BRIC bank), is a day which brings the local banking system to total collapse. And another day, or two, like today, and it may all be over:  According to banking sources, the Greek bank outflows on Friday soared to 700 million Euros from 272 million Euros on Thursday.

Ron Paul Stunned That George Soros Seeks To "Expand War In Ukraine"

Earlier this week, using hacked and leaked documents and pdfs created by, among others, George Soros' most recent wife who is less than half his age, we showed something fascinating: the puppetmaster behind the entire Ukraine conflict may be none other than George Soros himself.  Despite the limited distribution of this very fascinating story which casts a vastly different light on the Ukraine conflict than one shone by the mainstream, it did catch the attention of one person: Ron Paul. In the following clip Ron Paul looks at the stunning implications of Soros' involvement behind the scenes in Ukraine, how he may be pulling the strings in this most critical proxy war between East and West, and what he stands to gain.

 

Looking For The Next One: "All The Pieces Are Already In Position, Missing Now Only A Spark"

The Fed sees no risks of bubble trouble because they are looking at it all from the 2008 perspective. That is completely wrong-headed; if there is a “next one” it will have nothing to do with subprime mortgages, or even mortgages and real estate. Everyone seems to simply assume that the subprime problem ended in 2008, if only by crash. That is true but only of mortgages. Deleveraging is myth as debt has still expanded, and greatly, just not in the same exact places. There are certainly auto and student loans that have exploded exponentially, especially in subprime categories, but if there is another credit bubble now, the third, it is undoubtedly corporate debt.

"The Job Numbers Literally Do Not Add Up"

The last time the Establishment Survey was as robust as the past year or so was 1999; then, the average productivity was 3.7%! That number actually makes sense intuitively, since businesses would have good reason to go on a hiring spree. Porting that to the current period, as in the mathematical construction of productivity here, would mean, holding output constant, that total hours in the past five quarters would have been not +2.7% but -1.7%. These numbers literally do not add up.