What follows is the most powerful recorded police checkpoint scene we have witnessed...
The Fed, by raising its rates and relinquishing its downward pressure on the US dollar, is about to kill off most of the emerging markets. That’s a whole lot of misery in one pen stroke. That’s a whole lot of millions of people who will see their dreams of better lives shattered, just as they were beginning to think they had a chance. It’s how the game is played. The weak must be sacrificed so the strong be stronger.
FBI, DHS Go Full Scaremonger: Warn Police Of Airstrike-Inspired "Homegrown Extremists" & "Disgruntled Employee" ThreatsSubmitted by Tyler Durden on 09/23/2014 - 19:48
While careful to note 'no specific threats' have been found, it appears the FBI and DHS have decided it's time to show why local police departments needed to be fully militarized after all. In the first bulletin, according to Bloomberg, US security officials warned federal and local police to watch for “homegrown violent extremists” who may be motivated to attack by airstrikes in Syria. In the second bulletin, the FBI and DHS assess that disgruntled and former employees pose a significant threat to US businesses due to their authorized access to sensitive information and the networks businesses rely on (no doubt inspired by today's dreadful occurrences at UPS in Birmingham). It's just a good thing all those local police forces have MRAPs, don't you feel safer already? However, don't forget, as The UK made clear, the definition of terrorist is a tricky one since even viewing ISIS propaganda constitutes a criminal offense.
Every media outlet, newspaper, ant TV channel has a simple message for you, dear retail investor: please come back already, and buy, buy, buy... what every bank, prop desk, hedge fund, mutual fund, pension fund, and central bank, is so desperate to sell.
Any system that has no way to measure, much less prioritize opportunity costs (i.e. what else could have been done the capital, labor and resources) and maximization of utility is not just flawed - it is terribly misguided and structurally destructive.
Believing they are filling the macroeconomic bathtub with aggregate demand and full-employment jobs, Janet Yellen and her merry band of Keynesian money printers are simply blowing chronic, giant, dangerous bubbles on Wall Street. Easy money is always the wrong medicine, but most especially for an economy that is already and self-evidently saturated with too much debt. The implication of all of this, of course,is that our monetary politburo is out of business; that “monetary accommodation” is nothing more than a one time parlor trick of central bankers.
The next time your friendly, local, asset-gathering, commission-taking, wealth-transferer explains that "you should BTFATH because stock valuations are supported by the fundamentals" - show them these two charts.
The U.S. economy has had six full years to bounce back since the financial collapse of 2008, and it simply has not happened. Median household income has declined substantially since then, total household wealth for middle class families is way down, the percentage of the population that is employed is still about where it was at the end of the last recession, and the number of Americans that are dependent on the government has absolutely exploded. Even those that claim that the economy is "recovering" admit that we are not even close to where we used to be economically. Many hope that someday we will eventually get back to that level, but the truth is that this is about as good as things are ever going to get for the middle class.
The Russell 2000 is -7.5% from July highs, -3% in 2014, unchanged since last October and year-over-year small-cap performance is the worst since July 2012. Despite four valiant momo-pump efforts to rally stocks to VWAP (to cover institutional sellers), they just kept falling back to bond-market-reality as US equities decoupled lower from JPY after Europe closed. The USD closed unch (after major swings intraday around Europe's close) with GBP strength and AUD/CAD weakness leading it lower on the week. Treasury yields dropped 2-3bps across the curve (down 3-5bps on the week) and all below FOMC levels (30Y -11bps). Gold is now up 0.6% on the week with oil and silver rising modestly. Copper found no bid. Financials slipped once again (catching down closer to credit). On the day, the European close signaled risk-off and the ubiquitous Tuesday panic buying in the last hour lifted the S&P to VWAP before a very weak close "not off the lows." Dow down 100+ pts 2 days in row for first time since June. VIX closed just shy of 15 at 7-week highs.