Archive - Jun 2014

June 27th

Tyler Durden's picture

"Not Truly Well Off": Bill Clinton Was Paid $105 Million For 542 Speeches Since 2001





In Hillary Clinton's attempt to seem "one of the people", she made the public relations debacle of portraying herself as "dead broke" at the time she and Bill Clinton left the White House. Of course, the reason this attempt at populist pandering backfired is because as is well-known, even the least educated American, the bulk of wealth American president families accrue is not while in office but after, when they hit the speaking/book publishing circuit. This is just what WaPo found when it conducted a review of the Clintons’ federal financial disclosure: it found that Bill was paid $104.9 million for delivering 542 speeches around the world between January 2001 and January 2013, when Hillary left her job as secretary of state.

 

Pivotfarm's picture

Are you Short?





Well are you?

 

Tyler Durden's picture

The Most Unloved Rally Is In Bonds





Most market pundits have predicted higher bond yields (for months), yet unloved global fixed income securities have traded well all year. Even after the dovish FOMC reiterated its intent to maintain a highly-accommodative stance, bonds have stayed resilient. The main cause of market jitteriness might be that investors are beginning to sense the ‘time-inconsistency’ aspects of Fed policy.

 

Tyler Durden's picture

Why CEOs Love Buybacks (In 1 Simple Chart)





The CEOs of U.S. companies are compensated exceedingly well with the heads of the S&P 500 paid 331 times as much, on average, as production and nonsupervisory employees. As we wrote a month ago while explaining the 'mystery and completely indiscriminate' buyer of US stocks: "since a vast majority of executive compensation agreements are tied to company stock "performance"; C-suites are perversely happy if their own corporate cash is used to buy the stock near or at all time highs: after all management year end bonus will simply benefit that much more, while keeping activist investors delighted (and away from the embarrassing public spotlight)." Sure enough, as HBR explains, executive comp in recent decades comes down to four words: stock options and restricted stock (and more and more in the last few years).

 

Tyler Durden's picture

European Euphoric Expansion Caption Contest





Ukraine's President Petro Poroshenko (C) poses with European Commission President Jose Manuel Barroso (L) and European Council President Herman Van Rompuy (R) at the EU Council in Brussels June 27, 2014 following the singing of Ukraine's trade agreement with EU. Euphoria ensues.

 

Tyler Durden's picture

Frontrunning: June 27





  • Yellen Spending Recipe Lacking Key Ingredient: Bigger Wage Gains (BBG)
  • Ukraine signs trade agreement with EU, draws Russian threat (Reuters)
  • GM Documents Show Senior Executive Had Role in Switch (WSJ)
  • Australian Report Postulates Malaysia Airlines Flight 370 Lost Oxygen (WSJ)
  • World’s Biggest Debt Load Lures Distressed Funds to China  (BBG)
  • GPIF Rushing Into Riskier Assets Before Ready, Okina Says (BBG)
  • Japan Prices Rise Most Since ’82 on Tax, Utility Fees (BBG)
  • Italian Debt Swells to Rival Germany as Bond Yields Slide (BBG)
  • China’s Manhattan Project Marred by Ghost Buildings (BBG)
  • BOE's Carney Says Rates Won't Rise to Levels Previously Considered Normal (WSJ)
 

Tyler Durden's picture

Japanese Economic Collapse Dislodges USDJPY Tractor Beam, Pushes Futures Lower





Abe's honeymoon is over. Following nearly two years of having free reign to crush the Japanese economy with his idiotic monetary and fiscal policies - but, but the Nikkei is up - the market may have finally pulled its head out of its, well, sand, and after last night's abysmal economic data from Japan which saw not only the highest (cost-push) inflation rate since 1982, in everything but wages (hence, zero demand-pull) - after wages dropped for 23 consecutive months, disposable income imploded - but a total collapse in household spending, the USDJPY  appears to have finally been dislodged from its rigged resting place just around 102. As a result the 50 pip overnight drop to 101.4 was the biggest drop in over a month. And since the Nikkei is nothing but the USDJPY (same for the S&P), Japan stocks tumbled 1.4%, their biggest drop in weeks, as suddenly the days of the grand Keynesian ninja out of Tokyo appear numbered. Unless Nomura manages to stabilize USDJPY and push it higher, look for the USDJPY to slide back to double digits in the coming weeks.

 

June 26th

Tyler Durden's picture

NIRP Strikes: Spain To Create Tax On Bank Deposits





It was a little over a year ago, just as the Cyprus deposit confiscation aka "bail in" was taking place, when we asked, rhetorically, if "Spain is preparing for its own deposit levy" when an announcement by Spain's Finance Minister, Montoro, hinted at the imminent arrival of just that.  Of course, back in March 2013 imposing such a tax would immediately bring up images of parallel bank runs in Cyprus and visions of confiscated deposits, culminating in an immediate collapse of the otherwise already insolvent Spanish banking system. In other words, the timing picked by Montoro to reveal what was coming couldn't have been worse. Now, however, things are different. So different, that as Bloomberg reported moments ago, Spain is set to create a tax on bank deposits. Coming to an insolvent country near you.... everywhere.

 

Tyler Durden's picture

"My Credit Score Is Terrible...I'm Surprised They'd Give Me So Much [Credit]"





Banks and other lenders issued 3.7 million credit cards to so-called subprime borrowers during the first quarter, a 39% jump. "Even though [those borrowers] could be considered subprime, they're still creditworthy," is the deja-vu all over again message from the Financial Services Roundtable, who proudly crow, they are "starting to see an environment where issuers are feeling more comfortable to extend credit." How great is that? What could go wrong? One credit union exec notes, "lenders in general have really saturated the higher-credit-quality market, so it is only natural that as they look for growth opportunities, they expand downward," and sure enough, as one new borrower exclaimed, "my credit score is probably terrible," adding "I was surprised they'd give so much." Exceptional America is back...

 

Tyler Durden's picture

When The Herd Turns





"In economics, [the mainstream] rely on experts who don't know what they are talking about," explains Professor Steve Keen in this brief but compelling documentary discussing 'when the herd turns'. "Herd behavior is a fundamental aspect of capitalism," Keen chides, but it is left our of conventional economic theory "because they don't believe it;" instead having faith that investors are all "rational individuals" (e.g. willing to pay 112x for OpenTable), which he notes, means "[economists] can't foresee any crisis in the future." The reality is - "we do have herd behavior" and people will follow the herd off a cliff unless they are aware its going to happen. "Contrary to herd wisdom, financial crisis are not unpredictable black swans..."

 

Tyler Durden's picture

Hillary's Book Sales Crash After 1st Week; Reviews Disastrous





While Piketty's book was divisive, the reviews of Hillary Clinton's new book "Hard Choices" are downright one-sided - and terrible. That likely explains why, as AP reports, sales have crashed 44% after an already disappointing first week. "Hard Choices" sold just 48,000 copies in its 2nd week; and following the same dismal path as Greenspan, Cramer, and Geithner; has been discounted 40% on Amazon already.

 

Tyler Durden's picture

Dick Cheney Fearmongers "A Terrorist Attack Bigger Than 9/11 Will Happen Before End Of Decade"





Hot on the heels of Eric Holder's domestic terrorism task force creation, Lindsay Graham's recent diatribe of the "inevitability" of another terror attack (on the US) by Syria or Iraq, adding that "according to our own Director of National Intelligence, FBI Director, the next 9/11 is coming from here," it seems the ultimate scaremonger has decided it is his turn to stir the pot. Appearing on Hugh Hewitt's radio show, Dick Cheney explained that he "doubted" whether the US would "get through this decade" without another "massive attack on the homeland." But it's what he said after that makes Obama's NYC nukes concerns pale in comparison...

 

Tyler Durden's picture

10 Facts About The SWATification Of America That Everyone Should Know





The number of SWAT team raids in the United States every year is now more than 25 times higher than it was back in 1980.  As America has conducted wars overseas in recent years, our police forces have become increasingly militarized as well.  And without a doubt, many of our cities have become much more dangerous places. Once upon a time, police in America were helpful and friendly and the public generally trusted them.  But now our police forces are being transformed into military-style units that often act like they are in the middle of Iraq or Afghanistan.  The following are 10 facts about the SWATification of America that everyone should know…

 

Tyler Durden's picture

Algos Gone Wild? "Technical Glitch" Halts New Zealand Stock Market For 2nd Time This Month





While New Zealand's stock market is the 3rd smallest among AsiaPac exchanges, it is not immune from the "glitches" even the largest exchanges have become used to in the new normal era of 'liquidity providers'. For the 2nd time this month, equities trading in New Zealand (the entire market) is halted after a "technical fault" at the operator of the exchange. As one trader noted understatedly, "there seems to be a reasonably regular occurrence of issues, which is a bit of concern."

 
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