Archive - Jul 2014
July 31st
The West's Reckless Rush Towards War With Russia
Submitted by Tyler Durden on 07/31/2014 17:15 -0500For reasons that have no rational explanations at this time, the US and Europe have embarked on a concerted program to demonize Putin, ostracize Russia, and bring the world as close to a major conflict as it's been since the Cold War, a time hardly memorable to many in the current crop of our elected officials. A dangerous dynamic is brewing between the West and Russia/Putin. We are seeing a rush to war very similar to the one that led up to Saddam's ouster, but this time, we have much less justification (hard to believe) and the opponent is tremendously more capable. There is little sense in the course the West is currently pursuing, little to gain, and much to lose. The main conclusion here is that not only is the US poking the bear, but it is doing so with increasing frequency and upping the ante dangerously with each step.
An Insufferable Beer Crisis Hits California
Submitted by testosteronepit on 07/31/2014 15:58 -0500I’m a beer lover, but that beer-induced smile on my face is about to dry up.
Tesla's Non-GAAP Quarter In Three Gigacharts (Added Free Option: GAAP Charts)
Submitted by Tyler Durden on 07/31/2014 15:44 -0500Yes, yes, we know: soon everyone will be driving a Tesla, and, perhaps, sooner Tesla will build its much-hyped, and so critical for its business model Gigafactory (although shouldn't it be non-GIGA to go with non-GAAP... about which it had this to say: "In June, we broke ground just outside Reno, Nevada on a site that could potentially be the location for the Gigafactory. Consistent with our strategy to identify and break ground on multiple sites, we continue to evaluate other locations in Arizona, California, New Mexico and Texas."). In the meantime, and just as the biggest wealth effect-creating (for the 0.1%) stock market of all time appears to be ending, here is Tesla's quarter, and last few years, in three gigacharts.
Phil Davis on Money Talk
Submitted by ilene on 07/31/2014 15:44 -0500Phil is interviewed on Money Talk where he outlines some option trade ideas.
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"Markets In Turmoil" Russell 2000 Plunges Most In Over 2 Years, Dow Down For 2014
Submitted by Tyler Durden on 07/31/2014 15:05 -0500The deer is back...
RANsquawk Preview: Nonfarm Payrolls - 1st August 2014
Submitted by RANSquawk Video on 07/31/2014 15:03 -050021 Ways To End The Phrase "Americans Are So Broke..."
Submitted by Tyler Durden on 07/31/2014 14:53 -0500Americans are so broke...
Dow Drops 300 Points: Turns Red For 2014
Submitted by Tyler Durden on 07/31/2014 14:28 -0500Well that escalated quickly...
Demoted Chicago Tech Firm CTO Shoots Boss, Self
Submitted by Tyler Durden on 07/31/2014 14:24 -0500One man is dead and one man critical after a 59-year-old employee of Chicago tech firm ArrowStream shot the company's CEO and then turned the weapon on himself and committed suicide. Chicago Police stated that "he was despondent over the fact that he got demoted." The alleged shooter, Anthony DeFrances, CTO for the firm, had worked for the company since 2001. As Fox reports, the company’s CEO, Steven LaVoie, 54, of LaGrange, was in critical condition at Northwestern Memorial Hospital, after being shot in the head and stomach. Sadly, as small cap stocks come under pressure and the endless flow of hot money into tech startups slows (as it has done before), we fear this episode could well repeat all over the country.
"Stability Breeds Instability", Or Why John Taylor Is Angry
Submitted by Tyler Durden on 07/31/2014 14:01 -0500"What is the matter with us? Why can't we - especially our financial leaders - get it? Too much demos? Are we ruled by the Sun, the NY Post, and the Roman circus?Dropping back to earth from 10,000 meters - unfortunately, not high enough to be safe - the Japanese yen and the Dollar Index in general went wild this past week rising from comatose - straight lining almost - seemingly out of nowhere. It wasn't actually the Japanese industrial production coming in at minus 3.3% instead of the forecasted minus 1.2% that was such a surprise. We and many other analysts have been saying the Japanese economy was acting worse than it did in 1997 when they last hiked the sales tax, but the authorities everywhere said nothing, there seem to be no vigilantes of any sort. This is not the 1970's or the 1980's, we don't call an idiotic policy by its name (with money, that is). Zero Hedge can rant on but no one follows them or, more important, does a real analysis of the situation."
CDC Issues Level 3 Travel Alert As 'Largest Ebola Outbreak In History' Spreads
Submitted by Tyler Durden on 07/31/2014 13:38 -0500
Substituting Debt For Income Is Not Success - It's Failure On An Epic Scale
Submitted by Tyler Durden on 07/31/2014 13:18 -0500The economic "recovery" has been based on a simple premise: debt can be substituted for income with no ill effects. As real household incomes have declined, the legitimate foundation of additional spending--more income--has eroded for the bottom 90%. The Fed's substitution of debt for income has only doomed the nation to a deeper, more painful realignment of real income and expenses.
Useful Idiots and the Something for Nothing Society - Part 2 of 4
Submitted by tedbits on 07/31/2014 13:00 -0500- tedbits's blog
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Pentagon Slams Israel's "Unacceptable" Shelling Of UN Shelters As "Totally Indefensible"
Submitted by Tyler Durden on 07/31/2014 12:24 -0500We already know that all is not well in US-Israeli relations (despite the ongoing funding) and John Kerry is not helping, but this morning's comments from the White House and Pentagon are concerning. As The BBC reports, the US Defense Dept says civilian casualties in Gaza are "too high" and Israel needs to do more to protect civilian life. Then White House spokesman John Earnest added, "the shelling of a UN facility that is housing innocent civilians who are fleeing violence is totally unacceptable and totally indefensible." Time to rethink the $576 mllion tripling of Israeli aid?
Fitch Warns High-Yield Default Rate Set To Jump
Submitted by Tyler Durden on 07/31/2014 12:06 -0500As every 'real' corporate bond manager knows (as opposed to playing one on television), forecasting from historical defaults is a fool's errand as the process is entirely cyclical and non-stationary. The fact that default rates have been low for 4 years (thanks to an overwhelming flood of liquidity-driven demand for yield) is of absolutely no use when pricing discounted cashflows into the future. However, as Fitch warns, a jump in US high-yield default rates looms. There have been 10 LBO related bond defaults thus far in 2014, compared with nine for all of 2013. While most sectors remain relatively clam, the utilities and chemicals sectors are seeing huge spikes in defaults... which explains why the market is starting to price that in.







