"My conjecture is that investors have begun to price out June/July hiking risk they are beginning to reject the view that there is a high?probability fed funds path that is as shallow as the market is pricing in. Before you get to negative rates you would have the hail Mary of QE4 which would act mainly to push down long term yields. In the past the prospect of QE supported equity markets, but there is so much skepticism at this point that the equity market reaction is negligible and the brunt of the concerns are falling on USD and long?term yields."
"Freedom isn't free," you'll be told, but this isn't in reference to the enormous tax bill you're paying every year. No, this slogan is actually a veiled threat against you and a claim that however much you're paying now in terms of dollars or personal freedom, you should be ready and willing to give even more.
Following the denial in February that this action is in any way about reducing cash, Mario Draghi has made his decision: ECB ENDS PRODUCTION AND ISSUANCE OF €500 BANKNOTE. And just like that the second highest denominated European bank note in circulation is dead, driving everyone into the CHF1000 Bill, and implicitly weakening the euro.
"...we are not passive observers, we consistently take all the military measures we consider necessary in order to counterbalance this reinforced presence that is not justified by anything. Certainly we'll respond totally asymmetrically."
There’s something about being insanely rich that people will believe every word that comes out of your mouth no matter how bizarre. As one of the richest men in the world, Warren Buffett’s opinions carry almost Biblical impact, even when they might be completely ridiculous.
It's all over but the press conference (and perhaps elbowing his wife in the face). Watch John Kasich announce he is taking the exterminaTed way out, and also suspending his presidential campaign one day after Ted Cruz did the same, and leaving Donald Trump the official GOP candidate.
"none of the structural headwinds that seem to have plagued the global economy in recent years (a mix of excessive indebtedness, deteriorating demographics, rising political uncertainty as well as the end of the China growth miracle and the commodity supercycle) have been resolved."
As we previewed yesterday, perhaps more so that the longs it was the company's near record shorts who were expecting today's earnings release to see if their bearish bets on the company will pan out. And while the stock slid all day, losing 4% in regular hours after Jim Chanos announced he was short the car maket, the stock now appears to be jumping in the after hours session having just reported its Q1 results which were as follows.
Who could have seen this coming? Having told the British public in so many words, "Vote No To Brexit, Vote Yes To Undemocratic Superstate!" it appears President Obama's unwanted presence in the UK-EU Referendum debate has backfired beautifully. As FreeBeacon reports, Arron Banks, the British entrepreneur leading a grassroots effort to leave the European Union urges Americans to "keep sending Obama over," as 'Brexit' odds have risen above plunging 'Bremain' odds since the President paid a visit to the Queeen.
Is there anyone on the planet who's actually stupid enough to believe these New Normal charts are healthy and sustainable? We doubt it. Rather, the apologists, toadies, apparatchiks and flacks are being well-paid to cheerlead, and the "leadership" (using the term lightly) of the discredited institutions are terrified of what will happen when people finally catch on. The New Normal is not sustainable.
As another political crisis appears ready to grip Turkey, moments ago we got confirmation that the latest scandal, this time one involving the president and the prime minister, is about to become acute and will likely lead to a party Convention as well as the resignation of the Prime Minister. The immediate response: the biggest crash in the Turkish Lira since October 2008.
Just a month after the UK's luxury housing bubble burst, it appears the nice friendly bankers at Barclays are looking for some scapegoats to flip their condos to. That the housing recovery has been driven primarily by a steady flow of foreign investment, and not necessarily the underlying economic fundamentals improving is becoming clear to everyone and so in what appears a desperate act of deja vu, Barclays has brought back the 100 per cent mortgage - the first major bank to do so since the last financial crisis - to keep the ponzi dream alive just a little longer.