Did The Classic Car Bubble Just Quietly Burst?

It’s not just rare art and obscene homes that appear to be reaching peak insanity, it’s collector cars as well which, incidentally, speaks to the same dynamic that’s driving the art and mega mansions markets: namely, the relentless, central bank-fueled run up in financial assets has given the ultra rich more money than they know how to spend, leading directly to hyperinflation in the types of things billionaires buy when they get bored.

California Labor Commission Pops The Uber Bubble, Says Workers Are Employees

Without its drivers, Uber wouldn't have a business. The drivers are the backbone of the enterprise. Uber, with its "God view" monitoring system and volatile, sky-high surge pricing, definitely controls pricing and how the work is performed. Once Uber starts acting like a real business and faces normal business costs, we'll see how profitable they actually are. Until then, they are just a millennial sweatshop.

Greek Citizens Threaten To "Take The Heads" Of "Grave Digging" Creditors

They are going to turn us into murderers. If they come to seize my house I’m ready to take the head of whoever is standing there—and I’m not the only one thinking this way.”

"They can take our money, but they cannot take our hearts and souls. We live for our dignity."

America, You're Fired!

They call it "voting," and we're told it's our civic duty. But it's just an illusion. Just like in Caesar’s time, the election will go to the people who spend the most money. But we're not talking about the candidates. They're just puppets. Entertainers. We're talking about the people who bankroll them.

Meanwhile, In Greece, The Protests Return

On the eve of a critical Eurogroup meeting in Luxembourg where Greek FinMin Yanis Varoufakis says no new proposal will be tabled, Greeks are taking to the streets ahead of an anti-austerity protest planned for Wednesday evening.

PetroYuan Proliferation: Russia, China To Settle "Holy Grail" Pipeline Sales In Renminbi

Two critically important themes which have far-reaching geopolitical and economic consequences came together recently when it became apparent that Gazprom had begun settling all crude sales to China in yuan. This marked the intersection of yuan hegemony and the death of petrodollar mercantilism. Now, the trend continues as Russia and China will de-dollarize hundreds of millions in natural gas settlements.

Did Yellen Just Throw Greenspan/Bernanke Under The Bubble-Blowing Bus?

Reflecting on the rate hikes undertaken in the 2004-2006 period (ensuring the world not think that The Fed would repeat that) Janet Yellen appears to have thrown Greenspan and Bernanke under the bubble-blowing bus with an off the cuff comment that "with hindsight, The Fed should have hiked rates faster," during that period... which is odd since we assumed it was The Fed's job to inflate financial assets to prove the real economy was doing great?

FOMC Forecasts Economic Improvement But Sees Weaker Inflation, Sets Tone For September Rate Hike

With data showing very little sign of the Q2 post-weather bounce that The Fed forecast, and markets quaking in their boots on every 'good' data print, The Fed remains cornered - desperate to hike (to regain some ammo) but needing to lie through their teeth in order to rationalize why...


So the bottom line - The Fed has no idea still, is data-dependent (unless the data disagrees with them), and is now the world's plunge protection team. It seems the IMF's warnings have been ignored.

Pre-FOMC: S&P Futs 2091, 10Y 2.387%, EUR 1.1260, Gold $1178

The One Place The Fed Is Rapidly Renormalizing: The FOMC Statement Word Count

While Janet Yellen is hopelessly cornered (as explained yesterday, not hiking rates or worse doing even more QE, is the single "biggest risk to global equities" according to BofA as it would not only soak up even more liquidity and crush confidence in the economy, even worse than the Fed did hike rates and unleash the "Ghost of 1937") when it comes to monetary policy, one place where the Fed's desperate scramble to renormalize is distincly visible is in the FOMC statement itself.

"Lift-Off" Lies And The Fed's Reputational Risk

Every Fed watcher’s favorite word these days is “lift-off”. As if the Fed’s first rate increase, whenever that comes to pass, is the ignition of some giant Saturn V rocket that will inexorably carry interest rates up, up, and away. Please. This is Narrative creation … really, Narrative abuse … of the first order. The next time you read or hear someone use the word “lift-off”, I’m begging you to remember Jim Mora’s classic press conference when he was asked about the Colts’ chances of making the play-offs, because it’s a dead ringer for what Janet Yellen is saying in her heart of hearts.

Hensarling Slams Fed's "Willful Obstruction" In Leak Probe, Demands "Immediate Compliance"

Pedro da Costa will be pleased (as should every other American who actually believes The Fed is NOT above the law) as Rep. Jeb Hensarling unleashes a damning letter to The Fed accusing them of "willful obstruction" in the Congressional leak probe. Hensarling and Duffy demand "immediate compliance" with the subpoena and see "no legal basis to withhold records from Congress." We are sure these 2 gentlemen will not be invited to the FOMC Press Conference either.

With The Spread Between CPI And PCE Blowing Out The Most Since 2009, Is The Fed Making A Big Mistake

With a small possibility that later today the Fed may hike rates for the first time in nearly a decade, and if not today then in 65 days (per the Bank of America countdown to the repeat of the "Ghost of 1937") at the September 17 meeting on which consensus has congregated as the historic rate hike day, there is one particular chart that if not readers, then certainly the Fed, should focus on: the near historic difference between the two primary inflation measures, core CPI and the Fed's preferred, core PCE which is now at the lowest level since the financial crisis.

Silicon Valley's Fantastic "Dry Bubble"

With 75% of invested capital trapped in private Unicorns, that’s pretty dry. So for now at least — it’s a roach motel. All this money is going in at higher, all time higher, valuations — but very little is coming back out. The optimists believe it’s just a matter of time... Bill Gurley thinks there is a dry bubble.