Mattress Money & Need-For-Yield: "We Saw This In 2007"

“Cash On The Sidelines.” is the age old excuse why the current “bull market” rally is set to continue into the indefinite future. The ongoing belief is that at any moment investors are suddenly going to empty bank accounts and pour it into the markets. However, the reality is if they haven’t done it by now after 3-consecutive rounds of Q.E. in the U.S., a 200% advance in the markets, and now global Q.E., exactly what will that catalyst be? However, Clifford Asness summed up the problem with this myth the best and is worth repeating...

Roger Ailes Resigns From Fox News; Rupert Murdoch Takes Over As Acting CEO

Following a barrage of allegations of sexual misconduct involving Fox News' iconic CEO Roger Ailes, it seemed like it was only a formality before the departure was announced, and sure enough, moments ago it became official when Fox announced that Ailes has resigned as CEO and Chairman.

Complacency Is Creeping Back Into The Stock Market

With stocks’ steady drift through all-time high territory, investors’ relative near-term volatility expectations have plummeted to near record lows. So how did investors fare following such extreme displays of complacency?

Boehner On Ted Cruz: "Lucifer Is Back"

Back on April 28, we learned that John Boehner is not a fan of Ted Cruz. At all. So much so that he called Cruz "Lucifer in the flesh" and a "miserable son of a bitch." Overnight, the former House Speaker, a stalwart of the old GOP establishment, chimed in again in the aftermath of the Cruz fiasco and summed up his reaction to Cruz's controversial RNC speech in three words, according to a former aide: "Lucifer is back."

Here's What's So Crazy About This Stock Market

...Instead of punishing the shares of a company with declining sales and profits, huge write-offs, and a sky-high P/E ratio, markets simply continue to drive the stock higher, no matter what. Other stocks experience the same thing. This earnings season, more than ever, is turning into the Theater of the Absurd.

Are VIX ETFs A Powder-Keg Waiting To Explode?

"...the growth in VIX positions in leveraged products coupled with the increasingly bullish sentiment is a potentially explosive combination for the market - this powder-keg might not get set off - but the risk that it will, is rising."

Wall Street's Wishful Thinking - Debunking The "Abundance Of Strong Data" Meme

Having flirted with recession and escaped that fate, the mainstream assumes that 'it' is all over and that prior expectations should only resume. This binary arrangement has clearly colored recent analysis, and as such it has led to really unhinged commentary...but "abundance of strong U.S. economic data" is pushing very close to wishful blindness.

Amazon To Issue Student Loans To New "Prime" Shoppers

In Amazon's latest attempt to entice shoppers into its premium Prime program, Wells Fargo will cut half a percentage point from its interest rate on student loans to Amazon customers who pay for a "Prime Student" subscription, which provides the traditional Prime benefits such as free two-day shipping and access to movies, television shows and photo storage.

As Hillary Polls Slump, Even Michael Moore Says "Trump Is Going To Win

As Hillary Clinton prepares for the Democratic National Convention next week, the latest poll shows she is now tied with Trump (losing a 7 point lead from before FBI Director's Comey's decision). While the DNC will likely provide a bounce (Trump at 7 week highs), if outspoken liberal filmmaker Michael Moore's comments are anything to go by, the best is behind Hillary... "I think Trump is going to win. I'm sorry,"  Moore said, "people are in denial of this, but the chance of winning is really, really good."

Wall Street Is Confused By Elon Musk's Master Plan - "Credibility Is Challenged... How Do They Fund It?"

As we said last night when reviewing Elon Musk's "Master Plan", Part Deux, "it's one of those thing you read twice, three times, and then look at those around you to see if you somehow missed the deep message." Judging by the litany of responses by the sell-side this morning, we weren't the only ones confused. As the following reactions from Wall Street analysts, the confusion was far-ranging.

Existing Home Prices Hit Record High As Sales Growth Slowest In 4 Months

Despite a better than expected 1.1% MoM rise in June (thanks to notable downward revisions), existing home sales growth is the slowest since February. Of course, NAR's Larry Yun gloated of "sustained job growth" driving an "impressive streak of sales gains," although he cautions " it's unclear if this current sales pace can further accelerate." Median home prices soared to new record highs driven by soaring demand for condo/co-ops (+3.2% vs just 0.8% for single-family homes).

European Banks Soar As Draghi Hints At "Public Backstops"

If ever there was a reason for more European nations to 'exit' the sinking ship, Mario Draghi just spewed one. Having sent European bank stocks sliding with earlier calls for reforms, Draghi's wishful-thinking sent bank stocks soaring (especially Italian banks) after he noted a "public backstop is a measure that would be very useful and should be agreed with the Commission according to the existing rules." We can only imagine Herr Schauble's face when he heard this... and what about the Dijsselblom "template"?