Archive - Oct 2015

The surge in the USDollar today after The FOMC's 'hawkish' statement has prompted strength in the Offshore Yuan, narrowing once again the spread to Onshore Yuan. Another CNY10 billion cash injection hasn't done much for Chinese stocks or liquidity markets however. After better than expected Japanese industrial production however USDJPY plunged (i.e. no imminent BoJ easing) and that dragged Nikkei 225 over 200 points lower (erasing all the FOMC gains).

Pfizer has an enterprise value of $221 billion. Allergan has an enterprise value of $160 billion. The two companies combined would have a joint EV of nearly $400 billion and a market cap of well over $300 billion. That would make a potential merger between the two the largest M&A deal in history, while a "mere takeover" of Allergan by Pfizer would still rank it as the fourth largest deal in history and the largest deal in a year that is shaping up as a record for M&A. And, according to the WSJ, such a deal may be just a few months if not weeks away.

Well, Krugman got his wish.

After decades of berating Americans for their Constitutionally protected right to bear arms, Europeans are finally starting to wake up. It took over a million Islamic immigrants and violence across their union to convince them, but it appears that they finally get it. Despite how hard it is to attain these weapons in countries like Austria, firearms are currently being sold there in record numbers much like they are in the United States. But instead of the threat of confiscation, this trend is being fueled by the refugee crisis, which as one jounalist warned "something is very wrong here" if Austrians are buying guns to protect themselves against migrants.

It's that time again. From 'jolted' Jeb to 'cool' Carly and from 'calm' Carson to 'turmoiling' Trump, for some of the GOP presidential nominee candidates, tonight could be the last hoorah in a campaign that has seen apolitical entrants dominate the mainstream Washington muppets. Moderated by John "I never met a Republican I didn't like" Harwood, we are sure there will be some tension as the "general health of the economy" planned focus may morph into any and everything as the debate pushes beyond two hours. Please watch responsibly...

“This is not my life. It just shows you how many of them are here already... It’s generally about foreign infiltration... Look, when I walk through the streets of the city, it’s only foreigners! There are walking 50 foreigners and I only see one European face... Look at the women! They’re all veiled! This is our future."

The Hills Are Alive...

While we still haven't taken out the all time highs said squeeze would lead to - there are about 30 points to go there; but as the following chart below shows, with just two trading days left, October is on pace for the biggest monthly point jump in S&P500 hi

While the likes of Fastenal CEO Dan Florness remain extremely concerned about the current industrial environment, one person who isn't concerned about potential spillover effects into the “rest” of the US economy is Goldman’s David Mericle, whose last name is not to be confused with “miracle”, although as you'll see, that’s precisely what Dave seems to be banking on.

As An American, I'm FURIOUS that We've Squandered Our Strengths and Resources ...

There is a strong evidence to suggest that representative democracy is not compatible with deep economic inequality. As a recent study found, "politicians in OECD countries maximize the happiness of the economic elite." However, it was not always that way: In the past, left parties represented the poor, the center and the middle class. Now all the parties benefit the richest 1& of earners. As FDR warned, “Government by organized money is just as dangerous as government by organized mob.”

"In a warren of tiny shops beneath grimy residential towers, a white-haired man selling Snickers bars and fizzy drinks from a kiosk no larger than a cashier’s booth is figuring out a way to move $100,000 out of China"...

"The key question is if the US economy is strong enough to handle a stronger USD."

No, Ben S. Bernanke will be someday remembered as the world’s most destructive battleship admiral. Not only was he fighting the last war, but his whole multi-trillion money printing campaign after September 15, 2008 was aimed at avoiding an historical Fed mistake that had never even happened!

"We have long lines, but they're patient with it because Illinois is not paying. They're all coming here and saying, 'I'm from Illinois, how do you play it here?'"