Archive - Oct 2015
October 31st
Goldman's 4 Word Summary Of Q3 Earnings Season: "Adequate Earnings, Dismal Sales"
Submitted by Tyler Durden on 10/31/2015 16:28 -0500
The Power Of Fear & The Gullibility Of The Masses
Submitted by Tyler Durden on 10/31/2015 16:00 -0500It was 77 years ago this week that Orson Welles struck terror into the hearts of Americans with his live radio broadcast of the HG Wells classic War of the Worlds. What struck me while watching the PBS retrospective were the similarities between then and now. The gullibility of the masses, the power of fear, the overreaction by the media, busy bodies calling for the government to do something, and the effectiveness of propaganda are all commonalities between that Fourth Turning and today’s Fourth Turning.
First Images Of Russian Passenger Jet Crash Site Emerge
Submitted by Tyler Durden on 10/31/2015 15:26 -0500Did The PBOC Just Exacerbate China's Credit & Currency Peg Time Bomb?
Submitted by Tyler Durden on 10/31/2015 14:15 -0500China as the global Bubble’s focal point – the weak link yet, at the same time, the key marginal source of Bubble finance. China’s policy course appears to focus on two facets: to stabilize the yuan versus the dollar and to resuscitate Credit expansion. For better than two decades, similar policy courses were followed by myriad EM policymakers in hopes of sustaining financial and economic booms. Many cases ended in abject failure – often spectacularly. Why? Because when officials resort to such measures to sustain faltering Bubbles it generally works to only exacerbate systemic fragilities. For one, late-stage reflationary measures compound Credit system vulnerability while compounding structural impairment to the real economy. Secondly, central bank and banking system Credit-bolstering measures create liquidity that invariably feeds destabilizing “capital” and “hot money” outflows.
Greek Bad Debt Rises Above 50% For The First Time, ECB Admits
Submitted by Tyler Durden on 10/31/2015 13:35 -0500Today we got yet another tortured admission of just how ugly Greek balance sheets are, the ECB has admitted what we knew months ago, namely that more than half of all Greek loans are now nonperforming, and that as much as 57% of the loans made by Piraeus Bank the bank which fared worst, are at risk with the other Greek banks not much better off.
Guest Post: Truth, Lies, & Venezuela
Submitted by Tyler Durden on 10/31/2015 12:45 -0500In the US, there is a natural tendency to punish political candidates when they lie, but mostly about their personal peccadillos. If a country’s political culture is such that all agree on condemning intentional lies and liars, especially when their goal is to promote hatred, a country may avoid big evil. But this is not the case in Venezuela. Its government has run the country’s economy and society into the ground, overseeing the world’s steepest decline in output, highest inflation rate, and second highest murder rate, not to mention shortages beyond compare. And now it is systematically lying about the causes of the mess it created and inventing scapegoats.
Germans Face “Destruction Of Genetic Heritage" As Village Of 102 Braces To Be Overrun By Refugees
Submitted by Tyler Durden on 10/31/2015 12:00 -0500"Now they can stand up and preach. People say this is democracy, but I don’t think it is democracy to let Nazis say what they want"...
'Lipstick'-ing The GDP Pig Amid An Epochal Global Deflationary Swoon
Submitted by Tyler Durden on 10/31/2015 11:15 -0500The talking heads were busy this week powdering the GDP pig. By averaging up the “disappointing” 1.5% gain for Q3 with the previous quarter they were able to pronounce that the economy is moving forward at an “encouraging” 2% clip. And once we get through this quarter’s big negative inventory adjustment, they insisted, we will be off to the ‘escape velocity’ races. Again. No we won’t! The global economy is in an epochal deflationary swoon and the US economy has already hit stall speed. It is only a matter of months before this long-in-the-tooth 75-month old business expansion will rollover into outright liquidation of excess inventories and hoarded labor. That is otherwise known as a recession.
Withdrawals Of Gold From NY Fed Jump To 20 Tons In September, Total 276 Tons Since 2014
Submitted by Tyler Durden on 10/31/2015 10:40 -0500In September, the total physical gold held in custody at the NY Fed dropped another 19.9 tons in September, down to 5,919.5 tons. This was a doubling in gold withdrawals from 10 tons in August, and is the highest withdrawal since January. At just under 5,920 total tons in NY Fed inventory, this is the lowest amount of gold held in NY Fed custody in decades.
The Dire Societal Consequences Of Stability-Obsessed Keynesians
Submitted by Tyler Durden on 10/31/2015 09:45 -0500We will be the first to admit that yield curve inversion is not the only factor causing recessions, but through the credit channel it can be an important contributor. Depending on the importance of the credit channel, the Federal Reserve, by pegging the short term rate at zero, have essentially removed one recessionary market mechanism that used to efficiently clear excesses within the financial system. While stability obsessed Keynesians on a quest to the permanent boom regard this as a positive development, the rest of us obviously understand that false stability breeds instability.
US Sends Troops To Syria: Here Are The Questions The Media Should Be Asking
Submitted by Tyler Durden on 10/31/2015 09:05 -0500It's "boots on the ground" time in the Mid-East and predictably, the mainstream media are asking all the wrong questions. Here's what you need to know about America's plan to embed US commandos with Kurdish forces in Syria.
No Survivors After Russian Airplane With 224 On Board Crashes In Egypt's Sinai, ISIS Claims Responsibility
Submitted by Tyler Durden on 10/31/2015 08:39 -0500
Why The Fallacy Of The Fed's Feedback Loops Has Failed - "The Bust Is Still Underway"
Submitted by Tyler Durden on 10/31/2015 08:33 -0500Should the Fed actually hike in December (the statement explicitly mentioned the possibility), we think it’s highly likely to become a “one and done” that will be taken back shortly, similar to the BoJ’s handful of attempts to hike rates after the bursting of the 1980s bubble. We say this simply based on the economy’s actual performance. After all, it took only a minimal tightening of policy (the “tapering” of QE3) to induce a bust in the sector most exposed to capital malinvestment.
ECB's Own Data Shows QE Program As Utter Failure, Largest Banks Dwindle, Depositor's Capital Eyed for Bail-Ins
Submitted by Reggie Middleton on 10/31/2015 05:10 -0500Hundreds of billions of EUR of useless QE, dwindling mega banks, and cross continental legislation authorizing the confiscation of Depositor's Capital... Yeah, all is well in Euroland!
The Most Popular Reasons for Going Down with the Ship
Submitted by Sprott Money on 10/31/2015 04:54 -0500Time and time again, I’m hearing the same sticking points for failing to prepare – for failing to assure a more promising future for themselves and their families.





