US Job Market Not As Strong As Perceived, San Fran Fed Warns

Despite endless streams of Fed Speakers proclaiming, in one form or another, that "we are at, or close to, full employment;" many in America - judging by the election of President Trump - are not feeling as exuberant as the jobs data implies they should be. The SF Fed itself now agrees: "the labor market may not be as tight as the headline unemployment rate suggests."

America Is Hardly A Bastion Of Free Trade

Rhetoric has recently trumped reality. It has become a misconceived bit of common “knowledge” that the United States of America is a bastion of free trade. Little could be further from the truth.

Start Dealing!

Empires have one historical constant: they fail.

Accounting Change On Operating Leases To Add $3 Trillion In Debt To Corporate Balance Sheets

From a practical perspective, operating leases are pretty much the same as debt.  They reflect a contractual obligation on the part of one counterparty to make defined stream of cash payments to another over a set period and with an implied interest rate embedded in the payment stream.  That said, accounting rules treat operating leases differently than debt and do not require them to be included as a liability on a company's balance sheet.  That is, until 2019.

The Dancing Bears Are Back

We've reached the point that the central banks have run out of tricks... here's what comes next.

Too Poor To Fine? Town Forced To Pay $680K For "Running Debtor's Prison"

The state has turned its people into serfs once again, through petty fines and regulations, everyone has once again come under the thumb. For the corporeally liberated, it is primarily a form of debt servitude, but for the poorest, who have nothing left to lose, it can mean jail time...

Tail-Risk Hedges Spike To Record High

While VIX declined last week, the cost of protecting against major market swings has spiked above its previous Brexit-vote-day peak, reaching a fresh all-time high.