Archive - May 2014
May 30th
President Obama To Explain How Well The VA Probe Is Going - Live Feed
Submitted by Tyler Durden on 05/30/2014 10:15 -0500
Update: Sure enough, Eric Shinseki was just thrown under the bus.
Following his meeting with VA Secretary Eric Shinseki, President Obama has decided to do a quick press briefing... will he use the words "under the bus"...?
More Housing Bad News: Household Formation At 30 Year Lows
Submitted by Tyler Durden on 05/30/2014 10:06 -0500
Iif there is to be a real housing recovery, households have to be formed at a much faster pace. Alas, in recent years household formation has not made a "combeack", it has crashed. In fact, according to Census Bureau data, in Q1 the number of households formed each month was 189,000, down from 1,563,000 in 2013, dropping more or less in a straight line since the article's publication!
Gold Breaks Below $1250 - Worst Week In 8 Months
Submitted by Tyler Durden on 05/30/2014 09:40 -0500
It would seem this week's technical breaks in the precious metals was the perfect testing ground for junior Barclays traders to wet their whistle with "sudden bursts of sell orders." Gold - once again - has seen a sudden heavy volume purge in futures ($1.7 billion notional worth in 5 minutes) that has pressed spot prices back under $1,250 and heading towards it worst week in 8 months...
Weekly Wrap: Current News, Views & Notes from Ty Andros
Submitted by tedbits on 05/30/2014 09:36 -0500
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The Party Is Over In The Treasury Market
Submitted by EconMatters on 05/30/2014 09:17 -0500It is very apparent the Fed literally are making policy up as they go along and Wall Street doesn`t realize that the Fed has no exit strategy. The learning curve is going to be painful as always for Bond Holders.
Still Think The Fed Isn't Fueling Inflation?
Submitted by Tyler Durden on 05/30/2014 09:13 -0500
Just as we can't eat iPods, we can't subsist on official reassurances that the Fed and inflation are both benign.
UMich Confidence Misses; Current Conditions Lowest In 6 Months
Submitted by Tyler Durden on 05/30/2014 09:01 -0500
May's preliminary UMich confidence print of 81.8 was the biggest miss to expectations in 8 years. In the two weeks since then, the 'economists' have ratcheted back their exuberance to an expectation of 82.5... and still it missed at 81.9. So two weeks of exuberant equity markets have done nothing to soothe the consumer. The Current conditions sub-index tumbled to its lowest since Nov 2013 (and the outlook dropped also). Stock pushers are going to need higher highs if the dream of multiple expansion is to live on....So just as reminder, against the initial expectations, May's consumer confidence missed by the most in 8 years.
Chicago PMI Rises Above Highest Estimate Even As Employment Drops; Prices Paid Soar
Submitted by Tyler Durden on 05/30/2014 08:51 -0500
March's miss in Chicago PMI is now a dim and distant aberation as April and now May's Purchasing Managers Index surged to 65.5 - just shy of its Oct 2013 highs. As champgen corks fly and the world celebrates "we're back baby" - we hesitate to burst that exuberant bubble and note that production fell, the employment sub-index fell below its 12-month average (but that doesn't matter, right) and prices paid surged by their most in 5 years (that awkward margin-consuming inflation stoking thing).
That Goldman Even Has To Say This Shows Just How Broken Markets Are
Submitted by Tyler Durden on 05/30/2014 08:35 -0500Earlier today, as part of its latest macro markets research roundup, Goldman let a phrase slip, which probably better than anything we have seen in the past few years, captures just how truly broken the "market" is. To wit: "it is important to remember that weak global growth is generally negative for risky assets." That Goldman even had to remind its clients of this dramatic observation, puts to rest any doubts about just how much central banks' central-planning has perverted the cost/benefit analysis of the world.
The JPY Momentum Ignition Is Failing
Submitted by Tyler Durden on 05/30/2014 08:20 -0500
Long-dated bond yields are lower this morning but that is not stopping 'them' from smashing JPY lower to try to spark yet another pre-US-open ramp in stocks to run stops and get the momentum going once again (as they have for the last 6 days)... except today - so far - it's not working...
What Q2 GDP Surge? After March Spending Spree, Tapped Out Consumers Had Biggest Spending Drop Since 2009
Submitted by Tyler Durden on 05/30/2014 08:04 -0500Last month, when we noted the massive surge in Personal Spending which was funded entirely by the depletion of personal savings, we said that "since spending was so much higher than income for one more month, at least according to the bean counters, the savings rate tumbled and at 3.8% (down from 4.2% in February), was the second lowest since before the Lehman failure with the only exception of January 2013 after the withholding tax rule changeover. So for all those sellside economists who are praying that the March spending spree, funded mostly from savings, will continue into Q2 (because remember March is in Q1, which as we already know had an abysmal 0.1% GDP growth rate), we have one question: where will the money come from to pay for this ongoing spending spree?" Turns out the answer was... nowhere.
The Epic Failure of Keynesianism in Japan
Submitted by Phoenix Capital Research on 05/30/2014 07:19 -0500The Keynesians have failed. Japan has proved it. It’s only a matter of time before the rest of the world… and the markets catch on.
500% Rise in Spain's Long-Term Unemployment
Submitted by Tyler Durden on 05/30/2014 07:12 -0500
With yields at record lows and stocks soaring, is it any wonder that the politicians of Europe's periphery are proclaiming victory over the crisis (and yet oddly imploring Draghi to do moar?). Perhaps, just perhaps, they are keeping one eye on the 'real' economic progress that is being made (or un-made) in their nations... such as Spain, where there are now 1.26 million people who have been jobless since 2010 and the long-term unemployment rate has risen by more than 500% since 2007.
#AskBoE: Ask The Bank Of England Anything
Submitted by Tyler Durden on 05/30/2014 06:48 -0500
In the footsteps of the smashing success that was the #AskJPM and #MyNYPD social outreach by the two beloved institutions, yet another renowned entity has decided to take its comedic genius to the people: none other than the place where it all started - the Bank of England. So if you have a question for Mark Carney's money printing and housing bubble-forming institution, do no hesitate to tweet it: just remember to add the #AskBoE hash tag.







