Archive - Nov 23, 2013

Tyler Durden's picture

What It's Like To Be Poor - And Make Terrible Decisions





There are many reasons why the poor are 'poor' or why the middle-class is deteriorating into a state of being 'poor' but as this first-person account of the self-defeating feedback loops of poverty's trap harrowingly suggests, escaping that social strata (as we noted previously) is becoming ever more difficult. Of course, a George Carlin noted previously, "the only true American value is... buying things," which leaves the 'poor' increasingly losing hope. "Rest is a luxury for the rich," the author notes, "planning is not in the mix," as she explains why poverty has forced her to "make terrible decisions."

 

Tyler Durden's picture

White House Releases Iran Deal Fact Sheet - President Obama To Speak





The White House has released their (lengthy) fact sheet...

"During the six-month initial phase, the P5+1 will negotiate the contours of a comprehensive solution... Over the next six months, we will determine whether there is a solution that gives us sufficient confidence that the Iranian program is peaceful. If Iran cannot address our concerns, we are prepared to increase sanctions and pressure.

 

Suspend certain sanctions on gold and precious metals, Iran’s auto sector, and Iran’s petrochemical exports, potentially providing Iran approximately $1.5 billion in revenue

Israelis, Saudis, and Republicans are already questioning the decision...

 

Tyler Durden's picture

Iran Nuclear Deal Done (-20% Uranium Production For $6-7bn Lifted Sanctions)





UPDATE: Details of the deal are emerging including $4.2bn in FX

Despite earlier denials from Iran's Deputy FinMin, EU, Iran, and US officials have confirmed:

  • *IRAN NUCLEAR ACCORD WITH WORLD POWERS ENDS 10-YEAR DEADLOCK
  • *IRAN WILL HALT 20% ENRICHMENT FOR 6 MONTHS, FARS REPORTS
  • *IRAN AGREEMENT DOESN'T FORMALLY RECOGNIZE RIGHT TO ENRICH
  • *IRAN AGREEMENT WILL STILL ALLOW IRAN TO ENRICH URANIUM
  • *IRAN INTERIM AGREEMENT FREEZES ADDITIONAL SANCTIONS
  • *IRAN DEAL LIFTS TRANSPORT AND INSURANCE SANCTIONS ON OIL

There are no details yet - but an interim agreement has been reached to 'roll back' some of Iran's nuclear program in exchange for a lifting of some sanctions. Close U.S. ally Israel opposes the deal as too generous to an enemy it sees as a mortal threat. Israel is not a party to the talks. President Obama will address the nation at 1015ET to take a victory lap (perhaps this foreign victory will lift his domestic approval rating off record lows)...

 

Tyler Durden's picture

How Much Do My Sins Cost?





Federal and local governments are taxing our vices...big time. These taxes, known as "sin tax", generate revenue and affect purchases. So, how much would my smokes cost without all the taxes?

 

Tyler Durden's picture

Nope, No Bubble Here...





In the interests of plausible deniability, look away... we highly suggest Bullard, the QEeen, and the bulk of the mainstream financial press, look away...

 

Tyler Durden's picture

A (Visual) Tale of 25 Cities (And Half The World's GDP)





With more people in the world living in cities than ever before, cities’ share of global GDP is rising: 25 cities account for approximately 50% of the world’s GDP. But not all cities can be winners, and not all are destined for greatness. The following smorgasbord of charts highlight how successful cities have typically had natural advantages such as location, time zone and resources; but more importantly, to remain successful they need education, a skilled workforce, strong property rights, a broad base of industries and in some cases, policies aimed at attracting capital and talent. Conversely, As Goldman notes, when cities fail it tends to be either because of an overreliance on an industry that has seen a dramatic shift in its profitability, or as a result of the vested interests of those that control them.

 

Tyler Durden's picture

Killing The "We Paid Our Taxes; We Earned Our Benefits" Social Security Ponzi Meme





“We paid our Social Security and Medicare taxes; we earned our benefits.” It is that belief among senior citizens that President Obama was pandering to when, in his second inaugural address, he claimed that those programs “strengthen us. They do not make us a nation of takers.” If Social Security and Medicare both involved people voluntarily financing their own benefits, an argument could be made for seniors’ “earned benefits” view. But they have not. They have redistributed tens of trillions of dollars of wealth to themselves from those younger. Social Security and Medicare have transferred those trillions because they have been partial Ponzi schemes.

 

Tyler Durden's picture

The World's 2170 Billionaires Control $33 Trillion In Net Worth, Double The US GDP





"The average billionaire is incredibly well connected, with a social circle worth US$15 billion – five times the net worth of the average billionaire. This figure is based on a calculation of the net worth of only the three top connections of billionaires, and so it is likely to be even higher when considering the number of UHNW individuals the average billionaire interacts with while attending various meetings, dinners, and events." The bottom line from Weatlh X: "factoring in all of the connections between the world’s billionaires, this equates to a total social circle worth a combined US$33 trillion" or double the GDP of the US.

 

Tyler Durden's picture

iArb





Given the following chart, it is perhaps no surprise that the demand for iPhones in the US is higher than in the rest of the world. Forget about reaching for yield in CCC-rated cov-lite leveraged loans, ignore the latest internet no-profits-but-lots-of-eyeballs IPO, the real way to make money in the new normal is the 'iArbitrage'.

 

Tyler Durden's picture

Average Hedge Fund Returns A Tiny 6% Through October: Underperforms S&P And Mutual Funds By 75%





Tthrough October 31, the average hedge fund has returned a paltry 6%, 75% below the return of the S&P 500 and the average mutual fund. And while the traditional retort: "hedge funds aren't supposed to outperform the market but to hedge downside risk" is always at the ready, the retort to that retort is that as long as Mr. Yellen is Chief Risk Officer for the S&P, and the Federal Reserve is engaged in QE and otherwise generating a "wealth effect", which according to many will be in perpetuity or until the Fed finally and mercifully is abolished, the purpose behind the existence of hedge funds is simply no longer there as the Fed will never again voluntarily allow the kind of market drop that would make the existence of hedge funds meaningful.

 

Tyler Durden's picture

Today's Wealth Destruction Is Hidden By Government Debt





Still unnoticed by a large part of the population is that we have been living through a period of relative impoverishment. Money has been squandered in welfare spending, bailing out banks or even — as in Europe — of fellow governments. But many people still do not feel the pain. Many people believe the paper wealth they own in the form of government bonds, investment funds, insurance policies, bank deposits, and entitlements will provide them with nice sunset years. However, at retirement they will only be able to consume what is produced by the real economy. Savers and pensioners will at some point find out that the real value of their wealth is much less than they expected. In which way, exactly, the illusion will be destroyed remains to be seen.

 

Phoenix Capital Research's picture

Gold Beat Stocks Except During the Tech Bubble





Once Gold was no longer pegged to world currencies there was only a single period in which stocks outperformed the precious metal. That period was from 1997-2000 during the height of the Tech Bubble (the single biggest stock market bubble in over 100 years).

 

Tyler Durden's picture

With 1 Week Left Until November 30 Obama Scrambles To Boost Obamacare Enrollment; Propaganda Enters Overdrive Mode





With just a week to go until the Obama-promised "all clear" healthcare.gov date of November 30, the president is scrambling to boost enrollment in the 11th hour. As reported by Reuters, the administration announced a flurry of fixes to its troubled HealthCare.gov website on Friday that officials said would soon double its current capacity, a crucial step toward getting the system working by a November 30 deadline. It also pushed back a deadline for people to enroll in insurance plans for 2014 under President Barack Obama's Affordable Care Act in a nod to millions of applicants who have been unable to sign up because of technical glitches for nearly two months. The reason for the push is that consumers need to make decisions on healthcare plans in December if they want insurance in place by January.

 

Marc To Market's picture

Diverging Dollar Performance Set to Continue





An overview of the near-term US dollar outlook.  Not thinking it is crashing and burning next week simply because it is not backed by gold or because the Fed is engaged in QE.  

 
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