Dutch ABN AMRO Demands Draghi Buy More, Faster As ECB's Mersch Flip-Flops

Once again today we see spurious ECB members sending more mixed messages about ECB actions in the near future (and really only impacting precious metals by the look of it. Having said just a month ago that ECB QE would only be undertaken in strict adherence with mandates and treaties, and warning that QE would strain the ECB's risk-bearing ability; today Luxembourger announced that ABS QE would start next week and Sovereign QE is an option if things get worse. One bank, at least, will be overjoyed... as ABN AMRO wrote this morning that that the ECB needs to bid more aggressively for covered bonds to encourage the street to sell to them. Roughly translated is: "we front-ran your program based on entirely non-economic rationales and now it's "fuck you, pay me" time." Unintended consequence #34527, "whatever it takes" means buying everything at the worst possible prices and forcing EU taxpayers to carry that over-paying risk.

Do The Lessons Of History No Longer Apply?

In short, our views will shift as the evidence shifts, but here and now, the market has re-established overvalued, overbought, overbullish conditions that mirror some of the most precarious points in the historical record such as 1929, 1937, 1974, 1987, 2000 and 2007. That syndrome is now coupled with continued evidence of a subtle shift toward more risk-averse investor psychology, primarily reflected by internal dispersion and widening credit spreads.

Broke, Living In A Basement, With "Negative Savings": This Is What Millennials Spend Their Money On

When work is punished, homes are unaffordable, the American Dream is over, Milennials are burning through their assets or going into debt to survive... So just what is it that they are spending their hard-signed-up-for-benefits money on? We have the answer: Kim Kardashian: Hollywood, the freemium app in which you climb up to the A-list next to Kim Kardashian, made $43.4 million in Q3.

BofA: "Change Your Thinking On Gold" Friday Marked The End Of A 4 Year Decline

For the week ahead, BofAML's MacNeil Curry is focused on the plight of the USDollar, US Treasuries, and commodities; especially gold and oil. All of these markets, he warns, are showing signs of changes in trend. Most notably, Curry explains, we are switching gears on gold from bearish to bullish, "Friday's gains are just the beginning."

One Of Largest Russian Gold Miners On Verge Of Bankruptcy

While some companies, those lucky few which have no debt on their balance sheet, have the option to mothball projects and wait for the lack of supply to catch up with demand and also price (at least in a world in which physical supply and demand still have some bearing on trading of paper gold) others, those who have creditors breathing down their neck, whose extraction cash costs are above the spot price and who aren't hedged, are essentially out of options. One such company is Russian gold producer Petropavlovsk, which is now worth just $60 million and is in a perilous financial situation, with speculation it may even default on $310 million in convertible bonds in February. 

Saxobank CIO Warns We're About To See A Full-Scale Currency War

There's increasing risk we'll soon see a "significant paradigm shift" from China in its attitude to the strength of its currency, warns Saxobank CIO and Chief Economist Steen Jakobsen. He says we're about to see a full-scale currency war, notably between China and Japan, two of the world's greatest exporting countries.

Alibaba Closing In On 6th Largest Company In The US

Alibaba is now the 6th largest company of all US-traded entities... and is the biggest non-US-domiciled corporation in the world (having added $80 billion in market cap in the last 3 weeks alone)

Stocks Surge Back To "Prove" Friday's Jobs Data Was "Good" After All

No news, no catalyst... just a friendly VIX-crushing to lift stocks across the board back into the green from pre-non-fram-payrolls... which 'proves' the jobs data was great (despite the Fed's LMCI saying otherwise). With Europe now closed, let's see if it holds...

John Williams' Take On The October Unemployment Report: "The Economy Remains In Terrible Shape"

When it comes to inflation data, there are two parallel sources: the BLS, and ShadowStats' John Williams, who continues to plough through the underlying "data" using pre-pre-pre-revision protocols, and every month reveals a parallel universe in which something shocking is revealed: the truth. Here is his take on the October "weaker but really stronger than expected" jobs numbers. Here is what really happened.

The US Is Crossing The Frontier Of Criticality

Don’t expect this national mood of paralysis and surrender to last indefinitely. What troubles us at the moment is that when that mood snaps, it will be for a bad reason in the wrong way. In a way, it will be the true beginning of the end. The end of what? Of pretending that the people in authority know what they are doing. When it is really too late to fix any of these things, they’ll beg someone to tell them what to do, and the job-description for that position is dictator.

Natives Getting Restless: Protesters Set Fire To Door Of Mexican President's Ceremonial Palace

Following the massacre of 43 students who were allegedly abducted by corrupt police in southwestern Mexico in September, violent anti-establishment protests have broken out across the nation. As Reuters reports, demonstrators set fire to the door of Mexican President Enrique Pena Nieto's ceremonial palace in Mexico City as the Mexican people are angered at Nieto's visit to China (at a time when he should, in their eyes, be focused on domestic issues). The violence has been condemned, "You can't demand justice while acting with violence," said Nieto but it seems the people's restlessness is growing - not helped by the cancellation of a high-speed rail contract last week as opposition lawmakers accused the government of rigging the bidding.

"Turn Those Machines Back On" - The Day The Bond Market Died (If Only For A Few Minutes)

while the algos would have been delighted to let October 15 slide into the collective memory made obsolete by a constantly rising market (because investors are only truly angry when the market plunges not when it surges) just as the regulators made a mockery of their fiduciary responsibilities in the aftermath of May 6, and now markets are more fragile than ever as HFTs comprise the vast majority of all trades, some appear to be complaining and even, gasp, asking questions how it is possible that the $12 trillion US Treasury market traded like an illiquid Pink Sheets pennystock, or worse, the Nikkei.Here is the WSJ with some of the complaints: “It starts moving faster and faster, and you can’t point to anything."Actually, yes you can.