Tyler Durden's picture

Algos - We Have A Problem

For 'years' the US stock market has traded on 'fun-durr-mentals' - tracking USDJPY tick for tick day in day out as algos tickle leveraged currency trades to ignote momentum in US equities and guarantee 'proof' in the recovery. The correlation, however, between USDJPY and stocks (US and Japanese) has begun to deteriorate rapidly since Kuroda unleased Godzilla QQE... and today it is very clear...



Tyler Durden's picture

What Do College Undergrads Spend Their Student Loans On: High-School Classes

While the impact of the student loan bubble on the labor participation rate has been extensively covered in the past, there is a just as important question of just what these "students" spend their money on. Among the items revealed: "A U.S. Middle District Court indictment alleges that Price spent much of the loan money on crack cocaine, cars, motorcycles, jewelry, tattoos and video games." And iPhones of course, because someone has to indirectly provide US subsidies to the NSA's favorite company. Now we know one more thing that America's young adults, of whom some 24% expect that their debt will ultimately be forgiven, are blowing Uncle Sam's debt on. The answer: high-school level classes.



Tyler Durden's picture

Bank Of Japan Warns Abe Over "Fiscal Responsibility" While Monetizing All Its Debt

If one were to look up the definition of hypocrisy, the image of BoJ head Kuroda should be front-and-center. Having tripled-down on his money-printing and ETF-buying largesse just last week, he came out swinging last night at the government's fiscal irresponsibility blasting Abe's policies by saying Japan's fiscal health "is the responsibility of parliament and the government, not an issue for the central bank to be held responsible for." Aside from the fact that he is directly monetizing all JGB issuance - thus enabling Abe's arrogant fiscal stimulus plan (by issuing 30Y and 40Y debt), Bloomberg notes that "Kuroda is making it crystal clear the government has to tackle the debt problem and if fiscal trust is lost that’s not going to be on the BOJ." The world has truly gone mad.



Tyler Durden's picture

Why Living In A Post-Bubble World Is No Fun

It is generally conceded that we are living in an era of Peak Everything: peak central bank omnipotence, peak powerless of the non-elites, peak wealth inequality, peak media-induced delusion, peak market-rigging, peak bogus official statistics, peak propaganda, peak bread and circuses, peak deception, peak distraction, peak sociopathology, peak central statism, peak debt, peak leverage, peak derealization--need we go on? Peaks generate bubbles. Bubbles reach extremes and then they pop. What do we do when the bubble economy cannot be reflated?



Tyler Durden's picture

Homebuilder Hope Hammered As Housing Starts Tumble

With surging homebuilder sentiment, we suspect the disappointing plunge in Housing Starts (-2.8% vs +0.8% exp) will surprise a few but there is hope... as Building Permits rose 4.8% (vs 0.9% expectations) on the back of an 8% surge in multi-family / rental units. This is the highest level fo Permits since June 2008 (but still over 50% below peak permits levels in 2005). The only region with any increase in starts was the South.



Tyler Durden's picture

Crashing Steel Prices Lead To Largest Chinese Bankruptcy, "Will Be Followed By Others"

With growth rates for steel products at or near record lows and prices for end-product having plunged to record lows, it is little surprise that the Steel industry would provide the largest Chinese bankruptcy yet in this cycle. As Bloomberg reports, unlisted Haixin Iron & Steel - which halted production and defaulted on CNY3 bn in March - has started bankruptcy proceedings. Having spent 8 months hoping for the government bailout that every Western onlooker believes is every firm's god-given right, a reorganization application for the Wenxi, Shanxi province-based company (with $1.7 billion of total debt) was accepted by the Yuncheng City Intermediate People’s Court. This is just the start as "Haixin Group’s bankruptcy will be followed by others," warns one analyst, adding that the major flaw of producers of iron ore, the most traded commodity after oil, is they tend to be “over-bullish.”



Tyler Durden's picture

Frontrunning: November 19

  • Yellen Inherits Greenspan’s Conundrum as Long Rates Sink (BBG)
  • West African Mining Projects Take Hit From Ebola Crisis (WSJ)
  • Saudi oil policy uncertainty unleashes the conspiracy theorists (Reuters)
  • Senate Rejection of Keystone XL Measure Sets Up 2015 Showdown (BBG)
  • Ferguson, Missouri, remains on edge ahead of grand jury report (Reuters)
  • Putin Said to Stun Advisers by Backing Corruption Crackdown (BBG)
  • Italian ‘Invasion’ Has Swiss Fuming as Immigration Vote Looms (BBG)
  • Apple and Others Encrypt Phones, Fueling Government Standoff (WSJ)


Tyler Durden's picture

All Eyes On The Freefalling Yen Which Just Plunged To Fresh 7 Year Lows

Once again all eyes are on the carry-trade driving Yen, whose avalance into oblivion is picking up speed, and where the formerly unimaginable USDJPY level of 120 as presented here in September, is now looking like this week's business, with the only question how long until Albert Edwards' next target of 145 is hit leading to nuclear currency warfare between Japan, Korea, China and ultimately, the US and Europe. Unfortunately, for Japan, at this point the terminal currency collapse will do nothing to incrementally boost exports or its economy, and the former Japan finmin was on the tape warning again that the Japanese recession will persist as USDJPY over 115 is now hurting Japan, something which should by now have been clear to most.



Tyler Durden's picture

One Reader's Shocked Response Upon Learning His Health Insurance Cost Just Doubled

"Attached is the ACA notification of next year's price increase.  As you can see the cost goes from $281 to $555, a monthly increase of $274, a percentage increase of 97%. Basically we are now paying the same amount for the two of us that we paid for all four of us one year ago.  How can that increase occur in a "free market" economy?  Did I miss something? Has some input cost leaped exponentially in order to double the price I pay? Or has private industry colluded with government to rig the markets (again) in their favor?"



Tyler Durden's picture

Ukraine Admits Its Gold Is Gone: "There Is Almost No Gold Left In The Central Bank Vault"

Back in March we reported of a strange incident that took place just after the Ukraine presidential coup, namely that according to at least one source, "in a mysterious operation under the cover of night, Ukraine's gold reserves were promptly loaded onboard an unmarked plane, which subsequently took the gold to the US."  Needless to say there was no official confirmation of any of this taking place, and in fact our report, in which we mused if the "price of Ukraine's liberation" was the handover of its gold to the Fed at a time when Germany was actively seeking to repatriate its own physical gold located at the bedrock of the NY Fed, led to the usual mainstream media mockery. Until now. In an interview on Ukraine TV, none other than the head of the Ukraine Central Bank made the stunning admission that "in the vaults of the central bank there is almost no gold left. There is a small amount of gold bullion left, but it's just 1% of the gold reserves."



Tyler Durden's picture

Brooklyn Woman On Ebola Monitoring List Drops Dead Bleeding From "Face, Mouth, Nose"

Just a week after Dr. Craig Spencer was declared 'Ebola-free', The Daily Mail reports a woman, who had arrived from Guinea 18 days ago (and was on the NYC Ebola monitoring list), dropped dead in a Brooklyn hair salon this afternoon. FDNY sent their Special Operations and Hazmat units but she was declared dead at the scene. Witnesses said she was bleeding from the "face, nose, mouth, everything."



Tyler Durden's picture

Goldman's "Best Ideas" Hedge Fund Is Down 2.6% In 2014

If only the $3.2 billion Goldman Sachs Global Opportunities hedge fund had listened to the firm's equity strategists, life would have been great. However, as Bloomberg reports, the so-called 'best-ideas' fund dropped 5.6% in October leaving it down 2.6% for 2014 as interest-rate bets went pear-shaped amid the crash-and-dash that was October's market manipulation. "We believe monetary policy needs to catch up with growth, and that interest rates in the US and UK are likely to rise by a significant amount," the fund wrote. It seems Goldman 'muppeted' itself. Things aren't working out... and as a gentle reminder, the fund lost 35% in 2008.



Tyler Durden's picture

Japan Is Dying And We Still Don't Get It?!

What is it with us? Don’t we want to understand? Japan announced on Monday that its economy is in hopeless trouble and back in recession (as if it was ever out). And what do we see? ‘Experts’ and reporters clamoring for more stimulus. But if Japan has shown us anything over the past years, and you’re free to pick any number between 2 and 20 years, it’s that the QE-based kind of stimulus doesn’t work. Not for the real economy, that is.



Tyler Durden's picture

Guest Post: Civil Rights And Public Order In Hong Kong

The authorities in Hong Kong are once again threatening to clear the protest sites. They have a legal pretext, in the form of court orders issued in response to complaints from the owners of buildings, who are losing traffic. The powers that be are in no mood for compromise. “Police urge the illegal road occupiers to obey the court order, remove obstacles and personal belongings, and stop the illegal occupation soonest.”



Tyler Durden's picture

Surveillance State Wins - Senate Votes To Allow NSA Bulk Data Collection To Continue

Senate leaders failed to get the 60 votes needed to advance The USA Freedom Act - which would have limited the National Security Agency’s bulk collection of phone records - and as Bloomberg reports, it's unlikely a new version can be drafted for another vote before the congressional term expires this year. The 58-42 vote to move the measure forward came mostly along party lines as Senator Saxby Chambliss - the top Republican on the intelligence committee - rambling that the bill "eliminates tools critical to the intelligence community’s ability to prevent terrorist attacks, and its adoption would greatly degrade our ability to fight domestic terrorism in particular." In other words - it's for own good, now shut up!



Do NOT follow this link or you will be banned from the site!