Archive - Dec 3, 2014
Corporate Bond Bubble Comes Unglued at the Bottom, Investors Begin to Bleed
Submitted by testosteronepit on 12/03/2014 22:52 -0500A desperate feeding frenzy takes its course.
Government's Small Business Administration Exposed As Corporate Welfare For Big Business
Submitted by Tyler Durden on 12/03/2014 22:47 -0500Many people have noted that the more insidious or corrupt a law or agency, the more positive sounding its name. The most egregious example during my lifetime, was naming legislation that stripped Americans of most of their civil liberties the “Patriot” Act. In a similar vein, which red-blooded American could ever be opposed to something called the Small Business Administration (SBA). As such, the SBA is the perfect vehicle for cronyism, corruption and corporate welfare, which indeed appears to be its primary reason for existence.
Russia's Monetary Solution
Submitted by Tyler Durden on 12/03/2014 22:28 -0500The hypothesis that follows, if carried through, is certain to have a significant effect on gold and the relationship between gold and all government-issued currencies. The successful remonetisation of gold by a major power such as Russia would draw attention to the fault-lines between fiat currencies issued by governments unable or unwilling to do the same and those that can follow in due course. It would be a schism in the world's dollar-based monetary order.
The New Exodus: 700,000 Young Spaniards Have Left Home Looking For Work Abroad
Submitted by Tyler Durden on 12/03/2014 22:05 -0500In the 16th century, Spain was, in fact, the greatest power in Europe during a significant chunk of the renaissance, and she had her overseas dominions to prove it. How times have changed. Today Spain is in financial straits, and most of her former colonies are in far better economic shape. And as the gloomy economic landscape in Europe has dried up opportunities for young Spaniards, many have started to look to South America to start new careers.
17 States Sue Obama Over "Unconstitutional" Executive Action On Immigration
Submitted by Tyler Durden on 12/03/2014 21:35 -0500A year ago, following the whole Supreme Court farce, a bevy of states proved there are more than just "idiot voters" left in the US, when they decided to sue Obamacare outright over one or more of its provisions. They were promptly shut down by a judicial system that is as corrupt as the government itself (needless to say, both working at the behest of their true financial puppetmaster: Wall Street). And yet, in the aftermath of the now epic fiasco that is Obamacare, and not to mention the violent reaction to the administration as demonstrated in the midterm elections, the president may have a tougher time to brush away the next round of adverse reactions against his latest hugely unpopular executive order, one involving the amnesty of over 5 million illegal immigrants. According to AP, Texas is leading a 17-state coalition in suing over the Obama administration's recently announced executive actions on immigration.
How JPMorgan Rushed To Hire Trader Because He Knew How To Rig The Electricity-Market
Submitted by Tyler Durden on 12/03/2014 21:00 -0500“There’s two things that I find incredible about this. First, that anyone would advertise in a resume that they know about a flaw in the system — signaling that they’re ready and willing to exploit that flaw. And, second, that somebody would hire the person sending that signal.”
And If You Act Now, We'll Throw In A Subprime Car Loan Bubble For Free
Submitted by Tyler Durden on 12/03/2014 20:31 -0500When at least 3 readers receive, at exactly the same time the following Bank of America email, then two things become abundantly clear...
"We Are All In A Ponzi-World Right Now, Hoping To Get Bailed-Out By The Next Person"
Submitted by Tyler Durden on 12/03/2014 20:00 -0500"We all are in a Ponzi world right now. Hoping to be bailed out by the next person. The problem is that demographics alone have to tell us, that there are fewer people entering the scheme then leaving. More people get out than in. Which means, by definition, that the scheme is at an end. The Minsky moment is the crash. Like all crashes it is easier to explain it afterwards than to time it before. But I think it is obvious that the endgame is near."
"Today central banks give money to institutions, which are not solvent, against doubtful collateral for zero interest. This is not capitalism."
B-Dud Explains The Fed’s Economic Coup (Or Why Every Asset Price Influencing Monetary Policy Transmission Is Now Manipulated)
Submitted by Tyler Durden on 12/03/2014 19:30 -0500The Fed can do only do two concrete things to influence these income and credit sources of spending - both of which are unsustainable, dangerous and an assault on free market capitalism’s capacity to generate growth and wealth. It can induce households to consume a higher fraction of current income by radically suppressing interest rates on liquid savings. And it can inject reserves into the financial system to induce higher levels of credit creation. But the passage of time soon catches up with both of these parlor tricks.
Central Bank Buying Of S&P 500 Futures Extended Until End Of 2015
Submitted by Tyler Durden on 12/03/2014 19:30 -0500
The "Independent" Financial Bubble Media Explained (In 1 Paragraph)
Submitted by Tyler Durden on 12/03/2014 19:01 -0500"...by the time euphoria sets in, most observers have a vested interested in avoiding stating the obvious - that delusion has replaced reality. Journalists and media companies that are supposed to objective are themselves benefiting from the bubble... ditto economic policy-makers..."
$178 Billion In Government Kickbacks: Meet The World's Biggest Organized Crime Syndicate
Submitted by Tyler Durden on 12/03/2014 18:47 -0500Once upon a time it was the Sicilian, or Russian, or Japanese, or Chinese mob that were some of the biggest sources of funding for corrupt government officials (incidentally, most of them). After all, the government is smart enough to realize that it is more lucrative to "cooperate" with the world's biggest criminal syndicates than to wipe them out and cut off a major source of funding (of course, when it comes to populist optics and reelection, there is always an easy low-level perp walk every week or so to keep the peasants in place... and Diebold).
Activist Hedge Fund Goes Postal On Jim Cramer
Submitted by Tyler Durden on 12/03/2014 18:25 -0500After last night's marvelous Bloomberg profile of Bill Gross' last days at PIMCO, we were confident that no written material today could surpass Mary Child's fascinating narrative of the fallen bond king. And then we read Cannell Capital's activist letter to one James J. Cramer, of CNBC and TheStreet director infamy, which is hands down the blockbuster reading material du jour.
Crushing The "Lower Gas Price = More Spending" Fiction
Submitted by Tyler Durden on 12/03/2014 17:24 -0500With uncertainty lingering and patience wearing thin after five-plus years of still lackluster wage growth, consumers are increasing saving for the future, hedging against a continuation of “more of the same.” Thus, for many, extra savings at the pump as a result of lower gas prices are simply being stored away to help supplement spending needs in the future, ramping up savings, not spending.




