Obama's Hawaii Vacation: $8 Million; Secret Service: $317k; Nailing A 40-Foot Chip: Priceless
Submitted by Tyler Durden on 12/30/2015 - 14:20
Thanks to the deep digging from Judicial Watch, we now know that President Obama's Christmas 2013 vacation to Hawaii cost taxpayers a handy $8.1 million. The itinerary, we are sure, was very similar to this year's golfing (and shave ice) extravaganza, which explains why, the known total expense to the American taxpayers thus far for all Obama travel is now $70,880,035.78. Well, it's only fair right?
"Coiled Spring" Stock Market Likely To Disappoint In 2016
Submitted by Tyler Durden on 12/30/2015 - 14:00
2015's stock market range (from high to low) is among the narrowest since World War II. This 'compression' has led the horde of asset-gatherers and commission-takers to suggest that stocks are a "coiled spring" ready to burst higher from this newly-formed permanent plateau. However, as S&P Capital IQ's Sam Stoval notes, that is the exact opposite of what to expect based on history. In fact a narrow range year is typically followed by a low return year, not a high return year.
The New Cartel Running The Oil Sector
Submitted by Tyler Durden on 12/30/2015 - 13:45
As oil prices wallow near multi-year lows, it’s becoming increasingly clear that the new cartel controlling oil prices is not OPEC but world credit markets. From Saudi Arabia’s record $100 billion deficit to shale oil’s continuing reliance on cheap credit funding, it’s clear that no major oil producer or company in the world right now is economically self-sufficient based on oil revenues alone. This situation has left the flow of oil and the decision on when to stop pumping the increasingly tarnished black gold in the hands of banks rather than oil men.
Unicorn Mauling: Fidelity Slashes Valuation Of Startup Superstar Uber By 7.5%
Submitted by Tyler Durden on 12/30/2015 - 13:37
In a move that will surely raise even more eyebrows if not launch a shockwave across Palo Alto just yet, Fidelity Investments said in its monthly holdings report that it has slashed the valuations of even more unicorns, starting with the biggest one of all, Uber, when it lowered the value of its stake in the company's Series D shares by 7.5% from Oct. 30-Nov. 30, while adding more pain to Dropbox investors when it lowered its value of the cloud service company by another -2.2%.
Puerto Rico To Default On Some Bonds January 1 - Live Feed
Submitted by Tyler Durden on 12/30/2015 - 13:17
“To make a total payment will be almost impossible. If a partial payment is made: what bonds should we pay? It is an assessment that is being done. It is highly unlikely that there will not be default, in whole or partially.”
Downright Ugly 7 Year Auction Concludes Treasury Sales For 2015
Submitted by Tyler Durden on 12/30/2015 - 13:15
First thing this morning, when previewing the key event of the day, namely today's auction of $29 billion in 7 Year Treasurys, we said that "with the issue not anywhere close to trading "special" in repo, the risk for a big tail - like in yesterday's 5Y auction - is high." And, just like yesterday, when we again correctly predicted the tail on the 5Year (following the very strong squeeze into the 2Year the day before) moments ago we got just what we expected when the Treasury announced that it had sold the $29 billion of Cusip N30 at a yield of 2.161%, the highest since September 2014, but more importantly tailing 0.5 bps to the 2.156% When Issued.
Art Cashin's 2015 Summary: From Caitlyn Jenner To Confederate Flags
Submitted by Tyler Durden on 12/30/2015 - 12:55
Two Thousand Fifteen had high hopes at the start, but a sharp selloff in August nearly ripped us apart; Then Draghi and Yellen swore that hope hadn't departed, so we stuttered and sputtered to just get back where we started.... Hoverboards were this season's really, really hot toy; And Bruce Jenner's now Caitlyn - he's no longer a boy
Not The Onion: US Government Is Taking Credit For Bringing Peace To Syria
Submitted by Tyler Durden on 12/30/2015 - 12:25
State Department spokesperson John Kirby is raising eyebrows after he released a reap of 2015 “success stories” in which he credits the United States for bringing “peace” and “security” to Syria and “stepping up” to help the country’s people at a difficult time. Using the hashtag #2015in5words to highlight last year’s wins, Kirby boasted: “Bringing Peace, Security to Syria.”
The Bail-Ins Are Back! Portugal Slaps Senior Bank Bondholders With €2 Billion Loss
Submitted by Tyler Durden on 12/30/2015 - 12:01
If you are an institutional investor and you bought Novo Banco bonds, you just had a bad morning...
The Cultural Contradictions That Have Crippled The Great American Middle Class
Submitted by Tyler Durden on 12/30/2015 - 11:35
Conventional explorations of why the middle class is shrinking focus on economic issues such as the decline of unions and manufacturing, the increasing premiums paid to the highest-paid workers and the rising costs of higher education and healthcare. All of these factors have a role, but few comment on the non-economic factors, specifically the values that underpin the accumulation of capital that is the one essential project of middle class households.
Brazilian Real Crashes Most In 4 Years As Hope Fades
Submitted by Tyler Durden on 12/30/2015 - 11:13
Following recent strength on the heels of hope for a new finance minister, news that Ruosseff has sent the minimum-wage-hike Bill to Congress appears to have crushed the hype of any fiscal rectitude and sent Real tumbling. Down over 4% - the most since September 2011 - BRL is back above 4.00 per USD, giving up all the recent gains.
Goldman Admits It Was Wrong Forecasting 3% Yields For 2015 As It Forecasts A 3% Yield For 2016
Submitted by Tyler Durden on 12/30/2015 - 11:10
If at first you don't succeed, try, try, keep trying again and again. That appears to be the mantra of Goldman's credit strategists.
UK Revolts Against "Pampered Student Emperors"
Submitted by Tyler Durden on 12/30/2015 - 10:49
While stories of micro-aggression and "safe spaces" abound in America, it appears the growth so-called "little emperors" throughout the world's universities is on the rise. As Harry Mount rages in the following Telegraph op-ed, the babies of the late 90s – mollycoddled by their parents, spoon-fed by their teachers, indulged by society – have now reached university and "It's time to say No to our pampered student emperors."
WTI Crude Extends Losses As Production Rises & Inventories Unexpectedly Build
Submitted by Tyler Durden on 12/30/2015 - 10:38
Last night's surprisingly large inventory build reported by API (+2.9mm vs expectations of -2.5mm) sent hopeful crude prices reeling (not helped by comments from Iran and Saudi this morning). Following last week's huge 5.9mm draw, DOE reports a 2.63mm build (confirming API's data). Cushing (which API reported as a 923k build) also saw DOE report a 0.9mm barrel build (pushing closer to its limits). As we have detailed previously, December typically sees major drawdowns in inventory as energy firms attempt to minimize tax burdens into year-end. December 2015 has seen a notably lower drawdown.
IMF Chief Pours Cold Water On Optimistic Yellen, Says Growth "Will Be Disappointing"
Submitted by Tyler Durden on 12/30/2015 - 10:22
In a guest article for Handelsblatt, Christine Lagarde warns that 2016 is likely to be a disappointment as the Fed hike and China's transition to a consumer-driven economy continue to weigh on global growth prospects. Sorry Janet, it looks like the IMF doesn't agree with your justification for liftoff.
