Tyler Durden's picture

"Pakistan Spring" Escalates; 3 Dead, Over 470 Injured As "Soft Coup" Hardens

The violent protests that raged yesterday have turned deadly as clashes between riot police and anti-government protesters left 3 dead and at least 470 injured according to The WSJ. The military, who are acting as mediators between PM Sharif and opposition leader Imran Khan have warned both sides that they neither support the others view or sanction further use of violence to suppress crowds. Mr. Khan exclaimed to the people, "if you want to be free, if you want to have a real democracy, the time has come;" as another protester noted "the police were brutal, but that is good because whenever blood is shed in a movement, it turns into a revolution." Meanwhile, the so-called "soft-coup" as WaPo refers to it continues to harden (threatening $3bn of US aid) as Prime Minister Sharif is left with fewer and fewer options.



Tyler Durden's picture

Goldman's Special Purpose Tentacle Revealed In Europe's Latest Bank Failure

  • Off balance sheet vehicles?  Check
  • Conflicted bank "research" recommending muppets buy stock while soliciting banking fees from same stock?  Check
  • Hoping to sell debt on to muppets?  Check
  • Chinese corruption? Check
  • State bailout of failed bank? Check


Tyler Durden's picture

Leverage, Derivatives, And The Heresy Of Opposing The 'Status Quo Institutions'

Does the use of leverage (properly defined) and derivatives (properly defined) create trading risks that wouldn’t be there if you just bought the Vanguard 60/40 fund and called it a day? Sure. But we believe risk-balancing strategies mitigate far more dangerous risks to a public pension portfolio – particularly an over-reliance on equity markets. Public pensions are complex entities whose liability structures are often many times greater than the size of their investment portfolios. The common practice to resolve this dilemma has been to pursue an equity-dominated asset structure that has greater chances of achieving the required return to make the entire structure work. The problem is that equities are themselves leveraged, but it’s hidden leverage and thus hidden risk.



Tyler Durden's picture

Deja Vu - Someone Tell The Gold-Manipulating-Machines The Market's Shut

Just 3 months ago, as Americans celebrated Memorial Day, the spot price of gold jerked $20 higher (then plunged) as gold futures closed. Today, as Americans celebrate Labor Day, the liquidity-less market for spot gold just dropped $6, ripped back and settled lower in the space of a few minutes (with bids and offers fully crossed for a few minutes) as someone clearly forgot to tell the machines that the market is closed...



Tyler Durden's picture

Biden: "Unions Built The Middle Class In America"

You didn't build that... Unions did. Vice President Joe Biden gave a 'rousing' Labor Day speech this morning explaining that "Unions did, in fact, build the middle-class... and that built The United States of America as we know it."



Tyler Durden's picture

Who Said It? Chairman Mao Or President Obama

“Political power grows out of the barrel of a gun.” While some quotes are indelibly linked with certain politicians - in this case, Mao Zedong - in many other cases, what leaders say can sound the same, no matter what end of the political spectrum they sit on. WSJ Real Time China blog asks can you tell some of his other musings apart from those of U.S. President Barack Obama? Or current Chinese President Xi Jinping?



Tyler Durden's picture

The 'Wages-Fuel-Demand' Fallacy

In recent months talking heads, disappointed with the lack of economic recovery, have turned their attention to wages. If only wages could grow, they say, there would be more demand for goods and services: without wage growth, economies will continue to stagnate. Unfortunately for these wishful-thinkers the disciplines of the markets cannot be bypassed.



Tyler Durden's picture

Spain Sells First-Ever 50 Year Bonds At 4% Coupon

Perhaps in order to celebrate its manufacturing PMI dropping from 53.9 to a below expectations 52.8, refuting the "growth story" promoted by its definitionally re-revised GDP (where the long overdue boost from hookers and blow is finally leading the country to new and improved Keynesian growth curves), moments ago Spain joined the likes of Canada, Caterpillar and Goldman and just issued, for the first time in its history, 50 Year bonds in a private placement. From Bloomberg:

  • SPAIN SELLS EU1B 50-YR BONDS
  • SPAIN TREASURY SELLS FIRST-EVER 50-YR BONDS, COUPON 4%

And since there is no hope that Spain will ever repay this bond, whose rate is dictated by anything - mostly the ECB's monetary policy - but the fundamentals it is functionally equivalent to Spain raising new equity without a maturity date and a 4% dividend.



Tyler Durden's picture

Ukraine Defense Minister Warns Of "Worst Conflict Since WWII", Shifts Forces To "Combat Full-Scale Russian Invasion"

Unless they are tilting at windmills, the rhetoric this morning from Ukraine's defense minister is the strongest and most actionable yet. Via his Facebook page, Valeriy Galetey accused Russia of "open aggression," and explained that:

  • *RUSSIA SHIFTED TO 'FULL-SCALE' INVASION OF DONBAS, GELETEY SAYS
  • *UKRAINE HALTS ATTEMPTS TO DISLODGE REBELS: DEFENSE MINISTER
  • *UKRAINE SHIFTS FOCUS TO HALTING RUSSIAN INVASION, GELETEY SAYS

Earlier in the morning, US Senator Bob Menendez said he has "no doubt Russia has invaded Ukraine," and following Ukraine requests for assistance from Europe and US, NATO responded by noting a reaction force or 3-5,000 can be ready in 48 hours.



Tyler Durden's picture

More Sanctions: Europe Will Ban Purchase Of Russian Bonds; However Russian Gas Exports Remain Untouched

Over the weekend, insolvent, debt-dependent Europe thought long and hard how to best punish Russia and moments ago reached yet another milestone in deep projective thought: as Reuters reports, Europeans could be barred from buying new Russian government bonds "under a package of extra sanctions over Moscow's military role in Ukraine that European Union ambassadors were to start discussing on Monday, three EU sources said." This will be in addition to the ban on the debt funding of most Russian corporations. So as Europe's 7-day ultimatum for the Kremlin to "de-escalate" counts down, Putin has a choice: continue operating under a budget surplus and ignore Europe's latest and most amusing hollow threat which is merely a projection of Europe's biggest fears, or spend himself into oblivion as Europe has done over the past decade and become a vassal state of the Frankfurt central bank.. Somehow we doubt Putin will lose too much sleep over this latest "escalation"...



Tyler Durden's picture

It's Settled: Central Banks Trade S&P500 Futures



Tyler Durden's picture

And The Best Performing Asset In August Was...

Nowhere was the humor of central planning better exhibited than in Brazil was a clear outperformer with the BOVESPA (+10%) posting its best monthly performance since January 2012. Why? Because Brazil just entered a recession. Perhaps the reason why the joke that global thermonuclear war will send futures limit up is funny, is because it's true...



RANSquawk Video's picture

RANsquawk - Week Ahead - 1st September 2014



Tyler Durden's picture

Key Events In The Coming Week

The US may be closed on Monday, but after a summer lull that has seen trading volumes plunge to CYNKian lows, activity is set to come back with a bang (if only for the sake of banks' flow desk revenue) with both a key ECB decision due later this week, as well as the August Nonfarm Payrolls print set for Friday. Among the other events, in the US we have the ISM manufacturing on Tuesday, with markets expecting a broadly unchanged reading of 57.0 for August although prices paid are expecting to decline modestly. Then it is ADP on Thursday (a day later than usual) ahead of Payrolls Friday. The Payrolls print is again one of those "most important ever" number since it comes ahead of the the September 16-17 FOMC meeting and on the heels of the moderation of several key data series (retail sales, personal consumption, inflation). Consensus expects a +225K number and this time it is unclear if a big miss will be great news for stocks or finally bad, as 5 years into ZIRP the US economy should be roaring on all cylinders and not sputtering every other month invoking "hopes" of even more central bank intervention.



Tyler Durden's picture

Frontrunning: September 1

  • Putin Suggests Statehood for Southeast Ukraine as Sanctions Loom (BBG)
  • Ukraine accuses Russia of 'open aggression' as rebels advance (Reuters)
  • Ruble Hits New Record Low Against Dollar (WSJ)
  • Further Russia Sanctions Seen `Almost Inevitable' (BBG)
  • Europe holds nerve as Russia-Ukraine warnings ratchet up (Reuters)
  • China manufacturing slowdown ripples through region (Reuters)
  • Brazil enters recession in election blow to Rousseff (Reuters)
  • Disruptive Hong Kong protests loom after China rules out democracy (Reuters)
  • Coal Miners See Signs of Recovery as Prices Stabilize (WSJ)


Do NOT follow this link or you will be banned from the site!