Greece Will Default On June 5 Without Deal, IMF Leaks

The ECB warns Athens that Greece is rapidly approaching the "end game", as Tsipras sticks to 'red line' rhetoric. Meanwhile, FinMin Varoufakis claims the country will pay wages and pensions this month, but a leaked IMF memo indicates Greece will default on June 5 if it does not strike a deal with creditors by the end of the month.

Inside China's Insane IPO Market: Full Frontal

Since the beginning of 2014, the 225 companies that have gone public in China have returned an average of 418% on their way to an average P/E of nearly 100X while growing earnings by an average of just 4%. Most absurd of all, software IPOs have returned 1,124%, have an average P/E of 311X on earnings growth of -5%.

US Commandos Raid Syria To Kill ISIS "Gas Minister" Identified By Damascus As Saudi Citizen

Days after Obama's official account of the May 2011 bin Laden execution had been severely jeopardized by Seymour Hersh's latest report, and when even official media outlets were forced to admit the White House's story was fabricated before being forced to retract, overnight the administration served its latest distraction to the American people when first thing this morning the press was ablaze with reports that US commandos had raided the eastern Syria town of al-Amr, where they killed a senior Islamic State commander, identified as one Abu Sayyaf, ISIS' "oil minister" in charge of the Islamic State's oil and gas operations.

US Foreign Policy In One Photo

Un-Photoshopped Reuters photo sums up US foreign policy perfectly as Abdul Latif bin Rashid Al Zayani, representing the Gulf Co-operation Council, appears to leave U.S. President Barack Obama hanging during a welcome ceremony at the White House this week.

Execution By Anti-Aircraft Gun: The Photographic Evidence

Satellite images dated October 2014 appear to show a battery of six ZPU-4s lined up in front of "some sort of downrange targets" just outside of Pyongyang, suggesting that executions by anti-aircraft gun may not be all that uncommon in North Korea and reinforcing the following message: "No napping."

Guest Post: How Big Government Kills The American Dream

Last week, Sen. Elizabeth Warren, D-Mass., and New York Mayor Bill de Blasio published their prescription for reviving the American dream. They are right to focus on the dream. They are wrong in their understanding of American history and the role government can play in restoring and fostering the dream.


Are You Ready For The Coming Debt Revolution?

There is a specter haunting America... and all the developed nations of the world. It is the specter of a debt revolution.  Few in the White House realized they had made such a calamitous mistake when the president ended the convertibility of the dollar into gold. And yet it created a world in which parents and grandparents could prey on their grandchildren... for the next 44 years. And it’s still not over.

China Creates Perpetual Leverage Machine After Dropping Debt Directive

"China is reversing course on a major effort to tackle its hefty local government debt problem, marking a setback for a priority reform aimed at getting its financial house in order," WSJ reports. The abrupt about-face by Beijing, which will now allow local governments to once again tap shadow banking conduits for high interest loans, comes as the PBoC gets set to ramp up an LTRO-like program designed to essentially monetize trillions in local government debt. The interplay between the debt swap program, Chinese-style LTROs, and the decision to drop the ban on LGFV financing could set the stage for a dramatic increase in the country's already massive debt pile.

Global Trade Is "In The Doldrums", BofAML Says

"Global trade of goods and services has been in the doldrums [and] if predominantly structural, EM economies should not count on meaningful demand boosts coming from above-trend growth in DM. With Fed rate hikes looming, a jammed trade channel means less growth offsets to the anticipated tightening in financial conditions."

Massively Levered Beta: Tepper Adds $1.3 Billion, Or 33% Of Long Equity AUM, In SPY, QQQ Calls

While the market was topping out, Tepper was actively adding to his bullish exposure, but not in the form of many new stock positions, when in fact he partially unloaded 15 of his 38 positions, while adding 12 new positions. It was 2 of these new additions that were particularly notable: just like in early 2014, Tepper is once again back to index investing, having added a whopping $939 million in notional-equivalent SPY Calls, and $413 million in notional-equivalent QQQ Calls. In other words, Tepper is once again making a very levered beta bet that the market will resume climbing, and he can capture the upside through SPY and QQQ calls.

5 Things To Ponder: Reading While Waiting List

"To critics who warn that pumping trillions of dollars into the economy in a short period is bound to drive up inflation, today's central bankers point to stagnant consumer prices and say, 'Look, Ma, no inflation.' But this ignores the fact that when money is nominally free, strange things happen, and today record-low rates are fueling an unprecedented bout of inflation across asset prices."