Archive - May 25, 2014
When Does the Story Break?
Submitted by Tyler Durden on 05/25/2014 10:38 -0500
When does the market break? When will the Narrative of Central Bank Omnipotence fail? Implicit (and sometimes explicit) in these questions is the belief that this – whatever this is – simply can’t go on much longer, that there is some natural law being violated in today’s markets that in the not-so-distant future will visit some terrible retribution on those who continue to flout it. There has never been a more unloved bull market or a more mistrusted stock market high. Public markets today are essentially hollow, as what passes for volume and liquidity is primarily machines talking to other machines for portfolio “positioning” or ephemeral arbitrage rather than the human expression of a desire to own a fractional ownership share of a real-world company. We believe that today’s public market price levels primarily reflect the greatest monetary policy accommodation in human history rather than the real-world prospects of real-world companies. We believe that the political risks to both capital market structure and international trade (which are the twin engines of global growth, period, end of story) have not been this great since the 1930’s. Simply put, we believe we are being played like fiddles.
China Scrambles Fighter Jet, Flies Within 50 Meters Of Japanese Airplanes
Submitted by Tyler Durden on 05/25/2014 08:34 -0500
Yesterday we showed how Russia and China hold "massive" naval drills in the northern part of the East China Sea (close enough to Japan for us to footnote "ahem Japan and Taiwan"), which in addition to a clear signal to the US (on part of Russia), was sending just as clear a message to Japan (on the part of China). Sure enough, overnight Japan was not too happy with this massive show of force by the two biggest and closest foes near its disputed territory. As a result it dispatched an OP-3C surveillance plane and a YS-11EB electronic intelligence aircraft. China promptly retaliated and as Reuters reports, it scrambled a Su-27, fully-armed with missiles, which came as close as 50 meters of the Japanese fighters - the closest Chinese warplanes had come to aircraft of Japan's Self-Defense Force according to Japan - in what can only be described as "please take the first punch."
On Drip, Rake and Big Swinging Dicks
Submitted by Bruce Krasting on 05/25/2014 08:12 -0500The CBO report is screaming, "This is F-ed up! Fix this now, or pay a price later!"
A Look at the Week Ahead
Submitted by Marc To Market on 05/25/2014 06:33 -0500A dispassionate look at the week ahead.
The Missing Link For A Stock Market Crash
Submitted by Sprout Money on 05/25/2014 06:06 -0500Could this be the last straw?
