Starting on June 7th, FEMA will be conducting a large scale drill that has been named “Cascadia Rising” that will simulate the effects of a magnitude 9.0 earthquake along the Cascadia Subduction Zone and an accompanying west coast tsunami dozens of feet tall. We have never seen such a disaster before in all of U.S. history. Do they know something that the rest of us do not?
Vowing to intensify their action to overturn an unpopular labor law, striking French union workers have already left hundreds of thousands of tourists stranded, gas stations empty, and nuclear power plants stretched. However, as low-skilled American workers fall foul of minimum wage blowback, the French parliament - despite Prime Minister Valls insistence that "France must show that it’s capable of reforming" - just passed new legislation making it illegal for your employer to send you an email outside of work hours.
Shops are being looted as Venezuela's citizens, who live on top of the world’s largest oil reserves, are literally starving and dying for lack of food and medicine; all while the country’s gold reserves are being sold to finance its debt. With 1.8 million signatures on a petition for a referendum on Nicolas Maduro’s presidency, the country is threatening to become a failed state. So what should the world learn from the country’s descent into misery? In short, Venezuela is the poster child of the perils of rejecting economic fundamentals.
Shortly after 1042am local, Chinese stock futures (CSI-300) flash-crashed over 12.5% on extreme heavy volume (while the cash CSI-300 remained unch). This move erased 3 months of gains but within 1 minute was back in the green with stocks up over 2.5%. The shocking collapse, exaggerated by a major lack of liquidity, was made more surprising by the fact that the last week has seen a record short position in the major Chinese stock ETF. Simply put, the heavy hand of market-central-planning has erased any and all depth in futures markets and positioning has become so tilted that price vacuums are likely to continue to occur.
Last year we exposed the growing trend among thousands of British students who were funding their college experience through "Sugar Daddy" websites, where "arrangements" were made to allow students to pay off student loans and other living expenses. It turns out that US students are now following this crafty debt repayment plan in the new "modern hooker economy."
"The objective, quite simply, was to heap as much abuse on the Soviet Union as possible... The American media swallowed the U.S. government line without reservation... The perception we wanted to convey was that the Soviet Union had cold-bloodedly carried out a barbaric act... The moral of the story is that all governments, including our own, lie when it suits their purposes. The key is to lie first."
Yasuhiro Sato, president of Mizuho, Japan's second-largest bank by assets, said Abe's framing of the sales tax delay would determine whether it sparked concerns about the government's credibility regarding its plans for fiscal consolidation. "The worst scenario is [the government] will just announce a delay in the tax increase. That could send a message that Abenomics has failed or Japan is heading for a fiscal danger zone and then it will harm Japanese government bonds' credit ratings."
The key question around the US killings of militant leaders is do they even work? This is something the Wall Street Journal also pondered in a recent piece on just how effective US strikes on leaders of militant groups are in the long run. On one hand, it does appear as though the killing of Osama bin Laden has hurt Al Qaeda; on the other, the killing of Mansour may not have much of an impact at all on the Taliban.
With California finally mattering in an election season, it might be the final state primary before the Democratic race for president is set in stone. Regardless, recent developments have made one thing astoundingly clear: Donald Trump will almost surely defeat Hillary Clinton in a head to head matchup - and that’s why a vote for Hillary Clinton is a vote for Donald Trump.
Brazil's New Anti-Corruption Minister Quits After Leak Exposes His Involvement In Corruption ScandalSubmitted by Tyler Durden on 05/30/2016 - 20:46
Things for the new, just as corrupt as his predecessor president, Michel Temer got particularly awkward, not to mention painfully ironic, when none other than Brazil's Transparency and Anti-Corruption Minister, Fabiano Silveira resigned on Monday after leaked recordings suggested he tried to derail a sprawling corruption probe, the latest cabinet casualty impacting interim President Michel Temer's administration.
Here We Go Again: Wells Fargo Is Trying To Give Mortgages To Low-Income, Debt-Heavy Millennials Living At HomeSubmitted by Tyler Durden on 05/30/2016 - 20:30
Just last week we reported that a desperate to boost lending Wells Fargo was reintroducing 3% down mortgages on its own, without going through the FHA. Now we have direct confirmation that indeed Wells Fargo is desperate, and the plan to boost mortgage lending is to... drum roll... lure millennials out of the comfort of their parents home and into a house of their own. The fact that millennials don't make much money and are drowning in debt apparently doesn't bother Franklin Codel, head of home lending for the bank.
If you can name it — it has likely taken place this the lavish private island off the coast of Puerto Rico which boasts a beautifully landscaped plush luxury estate complete with its own helipad, privy only to certain members of the global elite.
From April 2015 through May 2016, every single one of the 173 stocks that Emperor analysts covered had a buy recommendation. The analysts were so wrong that shorting every one would have yielded 13 percent through last week. As we reported last year, Chinese retail investors opened enough brokerage accounts for every man, woman, and child in LA. As it turns out, that's precisely how Emperor was making its money, by securities turnover and margin loans due to an influx of new retail customers. The firm threw day trade buy recommendations out on every single stock and watched new inexperienced "investors" trade on that data. That effort takes Wall Street's lazy clustering to an entirely new level.