EU President: "Borders Are The Worst Invention Ever Made By Politicians"

If The British needed any more confirmation of their decision to leave The EU, Jean-Claude Juncker, president of the European Commission, just gave them a big one. The often incoherent "when it's important, you have to lie" politician spewed more United States Of Europe tripe this morning when he called for European nations to drop border controls, claiming that borders were "the worst invention ever." Britain's new PM, Theresa May, was not amused...

The Permian Pitfall: A Race To The Bottom For Tight Oil

Remember the shale gale and Saudi America? The scale of those outlandish delusions has now dwindled to plays in a few counties in West Texas and southeastern New Mexico. Saudi Permian. It’s a race to the bottom as investors double down on the tight oil companies that can still tell a growth story.

The First Victims Of The Libor Surge Have Emerged... In Japan

So far US banks have escaped the recent Libor surge, but the higher funding costs and shrunken market are hitting Japanese banks particularly hard, as they have been sourcing as much as a third of their U.S. dollar liquidity in the short-term U.S. market. Japanese banks have about $125 billion to $150 billion of CP and CDs maturing before the end of September.

Hillary Responds To Health Allegations; Opens A Jar Of Pickles: "I Feel Like This Is An Alternate Universe"

While Hillary Clinton continued her press conference radio silence, having avoided media Q&A for over 260 days, last night the Democratic candidate did appear on ACB's Jimmy Kimmel live show where she responded to recent reports that her health is deteriorating, saying she feels like she is in an “alternative universe” and laughed off any questions about her health and stamina, arguing that the current speculation "makes no sense."

FBI Probing If "Russian Hackers" Breached The New York Times, News Agencies

It's them Ruskies again! With pressure on Obama over his visit to Louisiana, and Hillary facing an avalanche of headlines over her "email crimes," it is time for a distraction... CNN reports, hackers thought to be working for Russian intelligence have carried out a series of cyber breaches targeting reporters at the New York Times and other US news organizations, according to US officials briefed on the matter.

8 Of 12 Regional Feds Voted To Hike Discount Rate In July, One Shy Of The 9 Last November

This means that as of a month ago, two thirds of all regional Feds were urging Yellen to hike the discount rate; they were the following: Boston, Cleveland, Dallas, Kansas City, Philadelphia, Richmond, San Francisco and St. Louis. Those who voted to keep discount rate at 1% cited argument that outlook and below-target inflation supported keeping current accommodation in place; banks were Atlanta, Chicago, Minneapolis, and especially the New York. Clearly they dominated the discussion.

Venezuela's Latest Response To Food Shortages: Ban Lines Outside Bakeries

The tragedy of Venezuela continues unabated, but that doesn't mean the government of President Nicolás Maduro has stopped trying to fix problems. Maduro has reportedly instituted a policy of fining bakeries that allow lines to stretch out their front doors, according to PanAmPost, claiming the lines aren't a true indicator of a severe shortage of bread, but rather, a political "strategy of generating anxiety."

Why Today's 2 Year Auction Is Important

"the most important tell on sentiment will be the U.S. Treasury auctions. Especially as they involve the two-year and belly. Yesterday morphed from “uh, oh they’re hawkish” to “I knew I should’ve bought the damn dip.” Buy every dip when facing the possibility of a third big NFP in a row? Sure, if you believe in the status quo"

Clinton Health Questions: Off-Limits Or Legitimate Issue?

Hillary Clinton is 68 years old. She's been diagnosed with cerebral venous thrombosis; head trauma, pregnancy, cancer, brain infection, autoimmune diseases and inborn clotting abnormalities are all predisposing factors, per the Washington Post. She's currently taking blood thinners. Four years ago, Clinton fainted, hit her head and suffered a concussion. But lately many in the media have become outraged that Clinton's health is being broached at all.

Investors Panic-Buy Saudi Default Protection Ahead Of Big Debt Deal

Amid expectations that The Kingdom will sell bonds as early as next month, investors are panic-buying protection against default on Saudi Arabia. The last few weeks have seen a surge in CDS notional outstanding to its highest on record even as Saudi risk has stabilized after quadrupling in the last year.

The US Real Estate Big Picture... A Thesis In Moral Hazard

Given central banks are all in and have no credible ideas (or credibility period), a NIRP driven speculative new housing bubble (for a population that is barely growing...hello China?) seems most likely.  If you haven't already, get busy front running the next moral hazard moonshot and then stay tuned.  Because as you read this, central bankers are already devising their next (even more destructive) "plan".

Madness In Mario-World: European Companies Issue Debt Simply Because The ECB Will Buy That Debt

Things are so absurd in the Eurozone that the ECB is buying private placement debt with little regard for safety. In turn, private equity companies issue debt simply because they know in advance the ECB will buy it. It’s a startling example of how the market is adapting to extremes of monetary policy, and it’s a safe conclusion the experiment will not end well.