Archive - Nov 10, 2013
Record Levels of Currency Reserves Will Hit Hard
Submitted by Pivotfarm on 11/10/2013 21:00 -0500When the US federal government was shutdown, China jumped in on the financial bandwagon and suggested that we build ‘a de-Americanized world’, which boils down to getting rid of the dollar as the international reserve currency.
The United States Of Hypocrisy (In One Cartoon)
Submitted by Tyler Durden on 11/10/2013 20:16 -0500
...because it's always what's not said that matters...
The Biggest Difference Between QE3 And QE2
Submitted by Tyler Durden on 11/10/2013 19:21 -0500... And why does the Fed, with $1.3 trillion in cash parked at foreign commercial banks or more than half of the reserves created under QE1, 2 and 3, continue to bail out non-American banks?
There's A Liquidity Crunch Developing
Submitted by Tyler Durden on 11/10/2013 17:24 -0500
This week an article in Euromoney points out that liquidity in bond markets is drying up. The blame is laid at the door of regulations designed to increase banks' capital relative to their balance sheets. Furthermore, the article informs us, new regulations restricting the gearing on repo transactions are likely to make things worse, not only reducing bond market liquidity further, but also affecting credit markets. The reason this will be so is that in a repurchase agreement a bank supplies credit to non-banks for the period of the repo. One could take another equally valid point of view: the reason for deteriorating liquidity in bond markets is due in part to yields being unnaturally low.
Veteran's Day Weekend Humor: World War I Explained On Facebook
Submitted by Tyler Durden on 11/10/2013 16:15 -0500
As we remember the fallen this weekend... Prussia: Oh, f##k you France.
Once Again, Retail Investors Are Piling Into a Bubble Near the Top
Submitted by Phoenix Capital Research on 11/10/2013 15:06 -0500
This is the single largest allocation of investor capital to stock based mutual funds since 2000: at the height of the Tech bubble. That year, investors put $324 billion into stocks. We might actually match that inflow this year as we still have two months left in 2013.
The Dummies' Guide To What The Jobs Report Really Means
Submitted by Tyler Durden on 11/10/2013 14:39 -0500
For almost two years (most recently this week), we have been vociferously explaining the dismal fact that "quantity" of jobs in this recovery is no match for dreadful "quality" of jobs as the "born-again jobs scam" contonues to roll on. Bloomberg's Matthew Klein has decided that nine pictures are better than a thousand words as he explains (in short sentences and simple charts) what the jobs report really means...
Ten Macro Thoughts for the Week Ahead
Submitted by Marc To Market on 11/10/2013 14:00 -0500A dispassionate overview of the investment climate and what to expect this week.
Guest Post: The Subprime Final Solution
Submitted by Tyler Durden on 11/10/2013 13:50 -0500
The MSM did their usual spin job on the consumer credit data released earlier this week. They reported a 5.4% increase in consumer debt outstanding to an all-time high of $3.051 trillion. In the Orwellian doublethink world we currently inhabit, the consumer taking on more debt is seen as a constructive sign. The storyline being sold by the corporate MSM propaganda machine, serving the establishment, is that consumers’ taking on debt is a sure sign of economic recovery. They must be confident about the future and rolling in dough from their new part-time jobs as Pizza Hut delivery men. Plus, they are now eligible for free healthcare, compliments of Obama, once they can log-on. Of course, buried at the bottom of the Federal Reserve press release and never mentioned on CNBC or the other dying legacy media outlets is the facts and details behind the all-time high in consumer credit. They count on the high probability the average math challenged American has no clue regarding the distinction between revolving and non-revolving credit or who controls the distribution of such credit. A shocking fact (to historically challenged government educated drones) revealed by the Federal Reserve data is that credit card debt did not exist prior to 1968. How could people live their lives without credit cards? 1968 marked a turning point for America...
As Bitcoin Plunges 25% On Government Scrutiny, The First BTC "Fair Value" Reco Has A Stunning Price Target
Submitted by Tyler Durden on 11/10/2013 12:39 -0500
Let’s use a broad guesstimate. One Bitcoin should theoretically be worth 700 ounces of gold or pretty close to $1,000,000, if we adjust existing supply of both to equal eachother. One BTC is currently worth 0.14 ounces of gold. That gives BTC an upside of 5000 times to equal the current price of gold, supply adjusted. Clearly, I and everyone else believes that Gold may well be much higher than here in the next 5 to 10 years, thus versus the US Dollar the upside for BTC could be multiples of that. Now, before you shake your head, simply go back to the chart of Gold versus the US Dollar and just recognise that it has risen 8750% since the 1920s. And just remember that Microsoft rose 61,000% from its IPO to it’s peak. Considering what we know about the world, I personally believe that Bitcoin may well explode in value as more and more people begin to use it. If you stuck $5,000 into Bitcoins and each Bitcoin did go up to a gold equivalent of let’s say, only 100 ounces of gold (not the potential fair value of 700), then at current prices your Bitcoin stash would be worth $3.3m.
Iran Nuclear Programme Deal Fails Due To French Block: New Saudi-French Alliance Emerging?
Submitted by Tyler Durden on 11/10/2013 11:22 -0500
While most pragmatists knew well in advance that optimism over an Iran nuclear programme deal emerging out of Geneva was very much displaced, few anticipated what the actual reason for the failure would be. Indeed, most had expected that the staunchest opponent to the deal, Israel PM Netanyahu who moments ago appeared on Face the Nation and made his case (saying Iran would have given up "almost nothing") would have used his influence over the US as a key member of the 5+1 group of nations (US, Russia, China, France, Britain and Iran) to block any Iranian detente with the US, even though none other than John Kerry has been urging for the Iranian deal for weeks. So when news hit that it was France who had scuttled a deal with a last minute block, many were surprised.
Typhoon Death Count Surpasses 10,000; People "Walk Like Zombies Looking For Food; Martial Law Imminent
Submitted by Tyler Durden on 11/10/2013 09:53 -0500With over 10,000 dead in the Philippines, here is a selection of what the survivors in the aftermath of the tragic hurricane saw: "The devastation is so big."... "I don't know how to describe what I saw. It's horrific."..."People are walking like zombies looking for food," said Jenny Chu, a medical student in Leyte. "It's like a movie."..."It's like the end of the world."







