It's do or die time for Saudi Arabia, Turkey, and Qatar as Russia and Hezbollah are set to rout the Syrian opposition at Aleppo. In what very well may be a prelude to world war, the Saudis have sent warplanes to Turkey's Incirlik airbase while Ankara has begun shelling the Kurds in Aleppo on the way to promising a "massive escalation" within 24 hours.
"The markets are not insulated from each other but are coupled in a “destructive” way, a mirror image of QE dynamics. Risks are becoming unpinpointable. Problems are global while politics remains inherently local allowing the existing trends to remain unchecked and self-reinforce. Any action causes further problems, which creates a quicksand effect -- everyone is both a victim and an accomplice."
It is a mistake to think that the lack of success of experiments in Socialism that have been made can help to overcome Socialism. The man who clings to Socialism will continue to ascribe all the world's evil to private property and to expect salvation from Socialism.
"Now, while your borrowing base might be upheld, there will be minimum liquidity requirements before capital can be accessed. It is hitting the OFS sector as well. As one banker put it, "we are looking to save ourselves now," with banks selling company debt for as low as $0.10 on the dollar on companies that only had a 50-75% borrow rates to start."
Among young voters, according to a well-watched video, "syphilis is more popular than Hillary." But Clinton is the crony favorite, supported by Wall Street and the Pentagon. In the old days, the conservatives believed the U.S. government was the devil at home and an angel abroad. The liberals believed the government was an angel at home and a devil overseas. Hillary believes that government always wears wings – at home and abroad.
Economists keep claiming economic recovery fulfilled, and yet it is found nowhere other than the BLS... and it is certainly not the view of funding and credit markets. In answering why economists and policymakers would throw out the vast and growing volume of especially market-based contradictions to their preferred labor view, we only have to note that this is an existential question for them.
The increasingly interconnected worlds of debt, energy, and economic growth are about to cause a very substantial disruption to the economy, as oil limits, as well as other energy limits, cause a rapid shift from the benevolent version of the economic supercycle to the portion of the economic supercycle reflecting contraction. Many people have talked about Peak Oil, the Limits to Growth, and the Debt Supercycle without realizing that the underlying problem is really the same - the fact the we are reaching the limits of a finite world.
- Theme 1: US economy appears insulated from global weakness
- Theme 2: Strong domestic consumer demand persists
- Theme 3: Managements remain devoted to share repurchases
- Theme 4: Outlook for China is positive despite recent turmoil
Based on the chart of the KBW Bank Index, Jamie Dimon’s decision to purchase shares of JPMorgan may have been well timed... but the credit markets have a very different perspective on what happens next.
According to Citi's Matt King, here is the biggest surprise about the recent global market crash: that on one hand it has been very orderly in some products, and yet very volatile, chaotic, and acute in others...
"I hoped to buy toilet paper, rice, pasta. But you can’t find them. The government is putting us through savage suffering."
It was just two days ago when Russian PM Dmitry Medvedev warned that if Saudi Arabia, the UAE, and Qatar invade Syria in a transparent attempt to shore up their Sunni proxy armies currently under siege by Moscow’s warplanes and Hezbollah, a “new world war” would be inevitable. On Saturday, Medvedev was back at it in Munich where more than 60 foreign and defense ministers are gathered for the 52nd Munich Security Conference.
If one had simply held a 50/50 portfolio of VXX/XIV (without rebalancing) for the several years shown -that is prior to the August crash- then their returns would have been >150%. And instead if one were long VXX and short XIV in just the past six months (mostly due to the August tumult but even including the subsequent temporary rally as well), their returns would be >450%.