Trauma Programming: "Up To Our Eyeballs In Manufactured Strife"

As the nation awaits the gruesome spectacle of the so-called debate between Trump and Clinton in an election campaign beneath the dignity of a third-world shit-hole, we are once again up to our eyeballs in manufactured racial strife...

Saudi Arabia Cancels Public Sector Bonuses, Slashes Salaries

Saudi Arabia's government has decided to curb to some financial perks for public sector employees, according to a live broadcast of the cabinet's weekly meeting. "The cabinet has decided to stop and cancel some bonuses and financial benefits," read a line of text on Ekhbariya TV, as a minister read to assembled ministers and royals, including King Salman, a list of cuts to be made in various grades in the civil service.

Latest Repo Squeeze Helps 2 Year Auction Prices Through When Issued

As a result of the latest repo market squeeze, the just concluded 2Y auction came in somewhat better than expected, printing at 0.75%, stopping 0.3bps through the When Issued. On the other hand, the Bid to Cover of 2.65 was modestly less than the 2.831 in August, and below the 6MMA of 2.72.

US Bank Stocks Slide After New Fed Tests Suggest Need For "Significant Increase In Capital"

Two weeks after European and Japanese banks threatened mutiny against new banking capital requirements set forth by the Basel Committee, Bloomberg reports that Wall Street would have to come up with billions of dollars in additional capital in a proposed revamp of the Fed’s stress tests. US bank stocks are sliding on the news, falling back to the reality of lower and flatter yield curves as well as systemic threats from Deutsche Bank.

BofA Fined $12.5 Million For Creating At Least 15 Mini "Flash Crashes"

The SEC announced that BofA/Merrill Lynch agreed to pay a $12.5 million penalty for "maintaining ineffective trading controls" that failed to prevent erroneous orders from being sent to the markets and causing at least 15 mini-flash crashes between 2012 and 2014.

Saudi Arabia Bails Out Banking System After Interbank Rates Hit 2009 Highs

Amid what some might call self-inflicted economic collapse, Saudi Arablia has announced a $5.3 billion bailout of its banking system as interbank borrowing rates near the highest since Lehman. In what the supposedly central bank calls "supportive monetary policy...on behalf of government entities," is easing liquidity constraints with 28-day repo agreements and is the second liquidty injection this year.

Why The Deep State Is Dumping Hillary

The governed are ready for a period of retrenchment, consolidation and diplomatic solutions to unwinnable conflicts, as imperfect as the peace might be to hawks. For these reasons, the more adept elements of the Deep State have no choice but to dump Hillary. Empires fall not just from defeat in war with external enemies, but from the abandonment of expansionist Imperial burdens by the domestic populace. Put another way: drones and proxies don't pay taxes.

Germany Goes There: "You Can't Compare Deutsche Bank To Lehman"

"When it's important, you have to lie," is the now well-known mantra from European leaders when the crisis hit. So when a German politician proclaims "you can’t compare Deutsche Bank with Lehman. The bank is in a position to get out of this situation on its own," it's time to panic. Just a week after the 8th anniversary of Lehman's collapse, the multi-trillion dollar derivative book of Deutsche Bank dwarfs that of Lehman... and the credit markets are starting to wake up again.

"My Order Book Is Abysmal" - Dallas Fed Contracts For 21st Straight Month

For the 21st month in a row, Dallas Fed's manufacturing outlook remains stuck in contraction (-3.7 vs -2.5 exp). This is the longest streak outside of recession in the survey's history as new orders cratered (one respondent noting "my order book is abysmal") and inventories tumbling (not good for GDP).

Hillary Clinton Unveils Guest List For Debate

With Gennifer Flowers seemingly off Trump's list, The Clinton campaign has unveiled its all-female guest list (on top of the already announced front-row seats for token male Mark Cuban).

Citi Slams "Increasingly Bizarre" Presidential Race As Morgan Stanley Unveils Trump "Contingency Plans"

Citi said that its "base case is for a Clinton victory and mostly continuity in policies, which would leave U.S. and global growth expectations relatively unchanged,” while describing the U.S. contest as “increasingly bizarre.” Bizarre or not, earlier this morning Morgan Stanley, whose base case is still a Clinton victory has presented several "contingency planning" scenarios in case Trump does win.