Europe just lost a big chunk of production from one of its most critical natural gas fields, and not for any of the usual reasons - technical problems, pipeline constraints, or terrorist disruptions. These cuts are due to earthquakes.
Stalemate between Britain and the European Union over what happens next following Britons' referendum vote to leave has opened up a host of possible scenarios. Here are some that are (in some cases, barely) conceivable...
Greece’s Finance Ministry is determined to collect what belongs to the state and as KeepTalkingGreece reports, since repayment settlements and other forms of arrangements have apparently failed in pushing debtors to put their hands in their pockets, the ministry will call in the internet cavalry: it will name & shame on the web the names of those debtors owing more than 300,000 euro to tax office or to social security and pension funds.
For the first time since early March, The Dow dropped back near 17,000 earlier (down over 1000 points from the pre-Brexit peak) with a modest bounce off the EU close lows. However, this plunge across risk assets has erased all post-QE3 gains with Trannies down 20% since Oct 2014. Having been almost 200 points 'rich' to the Fed balance sheet, it appears reality is setting in once again and risk is mean-reverting.
"The economy is nervous, shaky and uncertain. Fed policy has us locked into a lethargic and tenuous position. It appears the Fed doesn’t know how to get off the horse it created. The Fed talks interest rate increases but looks for every reason not to do it. Until the Fed backs out of trying to manage the economy, we will be stuck on the cusp of slow growth and a recession."
"There's no escaping the fact that this is a class war. Whether its globalisation, immigration, inequality, poor economic growth or a combination of all of them it's quite clear from this and other anti-establishment movements that the status quo can't last in a democracy. Eventually you'll have a reaction. This is one such major reaction and given that the UK growth rate has been ok of late, it would be strange if pressure didn't continue to build elsewhere where growth has been lower for longer."
"The unlimited ability of CBs to “prop up” financial assets has been shattered around the globe as Kuroda and Draghi are unable to protect asset markets (Carney as well apparently), but in the US, faith in Yellen remains high. Perhaps I’m old fashioned, but I believe that this too shall pass."
The Dallas Fed Business Outlook has now been in contraction for 18 straight months. The underlying components are mixed but the average workweek has collapsed back to its lowest since Nov 2009. As one respondent noted, "This is a recession... Fed policy has us locked into a lethargic and tenuous position... We cannot have millions of people out of the workforce and be healthy economically - they are a burden not a benefit."