Archive - Jun 7, 2014

Tyler Durden's picture

90% Of Gazprom Clients Have "De-Dollarized", Will Transact In Euro & Renminbi





Following Obama and Putin's "caught on tape" meeting Vine'd by the French President, we can't help but wonder if the Russian leaders comments were something akin to "this is not over yet." With "De-Dollarization" efforts already broadly under discussion, ITAR-TASS reports that Gazprom had signed additional agreements for clients to switch from dollars to euros and renminbi, "nine of ten consumer had agreed to switch."

 

williambanzai7's picture

MaCHiNe GuN KeYNeS...





And what's eating London...

 

Tyler Durden's picture

Japan’s Population Problem In Five Charts





With Abenomics facing severe 'reality check' problems as base wages tumble for the 24th month in a row, inflation surges, and the "Misery Index" soars to 33 year highs, this week's release of the annual report from Japan's Ministry of Health, Labor and Welfare paints a very grim picture of Japan's population problem.

 

EconMatters's picture

Doom & Gloom Sells





Have you become conditioned to always see the negative at the expense of missing the bigger picture? 

 

Tyler Durden's picture

The Madness Of Crowds And The Great Insanity





The central banks have created moral hazard on a scale which is simply unbelievable and set a stage for a bonfire of the vanities seldom, if ever, seen in history. Professional Investors who have spent a lifetime playing these contrarian opportunities offered by human behavior are being carried out on stretchers as historic market behaviors fail to materialize. "Never in my 30+ year career as a market observer have I seen so many out on a limb which is about to be sawed off." Those who live within the matrix are fully loaded for a recovery which is not and will not appear. But when the leverage fails, the world’s developed economies will be thrust into the next leg of the cleansing process of deleveraging and the destruction of it will be equally bigger. This conclusion is firmly on the horizon; let’s call it the great insanity.

 

Tyler Durden's picture

US Workers In The Prime 25-54 Age Group Are Still 2.6 Million Short Of Recovering Post-Crisis Job Losses





While the total number of jobs may have recovered its post December 2007 losses, for Americans aged 25-54, there is still a long, long time to go, with the prime US age group still over 2.6 million jobs short of recovering all of its post December-2007 losses. And there's more.

 

Tyler Durden's picture

Western Banks Scramble As China's "Rehypothecation Evaporation" Goes Global





While we have warned about the problem with near-infinitely rehypothecated physical/funding commodities/metals, be they gold or copper, many times in the past, and most recently here, it was only this week that China finally admitted it has a major problem involving not just the commodities participating in funding deals - in this case copper and aluminum - but specifically their infinite rehypothecation, which usually results in the actual underlying metal mysteriously "disappearing", as in it never was there to begin with. It would appear our fears of global contagion (through various transmission channels) are now coming true as WSJ reports that as many as a half-dozen banks are trying to determine whether the collateral for loans they made to commodities traders was used fraudulently by a third party to obtain other loans. As we detailed previously, it appears the day when the Commodity Funding Deals finally end is fast approaching... and as we note below, why that will certainly be a watershed event.

 

Tyler Durden's picture

The US Housing Market's Darkening Data





When looking at residential real estate, we often tend to focus almost solely on recent price movements in assessing the health of the housing market at any point in time. But as both homeowners and income-earners in the larger economy, of which the housing market is an important component, to really understand what's going on, we need clarity into the larger cycle driving those price movements. The more we look at today's data, the more it looks like that we are in a new type of pricing cycle -- one that homeowners and housing investors have no prior experience with. And the more we learn about the fundamentals underlying the current cycle, the harder it becomes to justify today's home prices on any sustained level. Meaning a downward reversion in home values is very probable in the coming years.

 

Tyler Durden's picture

Terrorist Negotiation 101





What can we get for John Kerry?

 

Tyler Durden's picture

Hope & Change; But White Men Still Can't Work





There's always 'hope' but nothing ever changes...

 

Tyler Durden's picture

Clothing Naked Experts





You know what the difference is between an Economist/Analyst, and a Business owner? When a Business owner makes a prediction on his or her business and is wrong – the business could wind up in bankruptcy. When the Economist/Analyst makes a wrong prediction about business – they just make another prediction.”

 

Tyler Durden's picture

Explaining NYC's Record Homelessness In One Disastrous Chart





By any measure, New York City’s homelessness crisis broke every record during the final year of the Bloomberg administration. The already record-high homeless shelter population soared even higher, to more than 50,000 people per night. There are, of course, numerous reasons for this disastrous situation but we suspect the following chart, from the coalition of the homeless, may just be enough to wake up the average American to the reality of this 'recovery'.

 

Tyler Durden's picture

There Is No Tradeoff Between Inflation And Unemployment





Anyone reading the regular Federal Open Market Committee press releases can easily envision Chairman Yellen and the Federal Reserve team at the economic controls, carefully adjusting the economy’s price level and employment numbers. The dashboard of macroeconomic data is vigilantly monitored while the monetary switches, accelerators, and other devices are constantly tweaked, all in order to “foster maximum employment and price stability." The Federal Reserve believes increasing the money supply spurs economic growth, and that such growth, if too strong, will in turn cause price inflation. But if the monetary expansion slows, economic growth may stall and unemployment will rise. So the dilemma can only be solved with a constant iterative process: monetary growth is continuously adjusted until a delicate balance exists between price inflation and unemployment. This faulty reasoning finds its empirical justification in the Phillips curve. Like many Keynesian artifacts, its legacy governs policy long after it has been rendered defunct. 

 

testosteronepit's picture

Selling Your European Stocks Before Everyone Else Sees This Chart?





Eurozone recessions, unemployment fiascos, toppling banks, crashing auto sales...  didn’t exist, sez the Stoxx 600. But then an ugly thing happened.

 

Tyler Durden's picture

China May Build "Artificial Island" Military Base In South China Sea





China is considering plans to build an artificial island in the South China Sea, according to the South China Morning Post. The island (on a reef that is part of the Spratly Islands and in disputed territory with Philippines and Vietnam) would be used as a military base to enforce a South China Sea air-defense identification zone.

Such a base would greatly enhance China’s ability to project offensive power in the disputed South China Sea.

 
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