Archive - Jun 21, 2015
Goldman And SocGen Unleash The "C"-Word: ECB Alone Can't Contain Grexit Risks
Submitted by Tyler Durden on 06/21/2015 21:16 -0500Unnamed "officials" have proclaimed a new set of Greek proposals received by Brussels tonight as "a good base," according to AFP, and thusly the Euro is very modestly bid. However, both Socgen (without a 3rd bailout of €60-80 billion over the next 3 years, Greek uncertainty remains high and leaves Grexit risk merely semi-stable) and Goldman (a deal will come only after the introduction of capital controls, a technical default on the IMF and issuance of IOUs/and a further build-up of arreas... and the damage resulting from a breaking of the integrity of the Euro would not be fixed by monetary policy alone) leave us wondering just who is buying Euros and US stocks and selling Swiss Francs as D(efault) Day looms and the 'C' word (contagion) spreads.
Is This Complacency, Idiocy, Or Both?
Submitted by Tyler Durden on 06/21/2015 21:15 -0500How can it be implied that the markets are too fragile to deal with an unexpected raise of interest rates to (gasp) 1/4 of 1%, if all the “data” we were told (or sold) has been showing signs of all this “improvement?” The question still remains: How does any Ivory Tower prognosticator, or Wall Street talking head, square all these circles? Simple – they don’t. They just act as if it they didn’t or won’t happen. Or, just continue to act as if we’re too dumb to answer. This is complacency, idiocy, and more – all turned up to 11!
Fake Boobs, Flying Saucers, & Furniture: What's Your State's Stereotype?
Submitted by Tyler Durden on 06/21/2015 20:50 -0500They are called stereotypes for a reason...
Bond Trading Revenues Are Plunging On Wall Street, And Why It Is Going To Get Worse
Submitted by Tyler Durden on 06/21/2015 20:36 -0500Among the renewed Greek drama, many missed a key development in the past week, namely Jefferies Q2 earnings, and particularly the company's fixed income revenue: traditionally a harbinger of profitability for Wall Street's biggest source of profit (or at least biggest source of profit in the Old Normal). And while not as abysmal as the 56% collapse in the first quarter, in the three months ended May 31 what has traditionally been the bread and butter of Dick Handler's operation generated just $153 million in revenue. CEO Handler blamed that decline on a lack of trading in the market and fewer companies selling junk bonds.
Future Shock And The Greening Of America
Submitted by Tyler Durden on 06/21/2015 19:45 -0500The 1960s visibly changed society in a few short years, and less visibly, the economy. Two books published in 1970, at the end of the tumultuous 1960s, attempted to weave a coherent narrative of what everyone was experiencing: Future Shock and The Greening of America. If Future Shock and Present Shock have any predictive value, then we must conclude the speeding up of change is eroding our ability to make sense of present-day trends, as the velocity of change is outrunning our ability to construct coherent narratives.
Greece Told To Have A Deal Ready Before Monday Meeting; Tsipras Submits Revised Plan With No Pension Cuts
Submitted by Tyler Durden on 06/21/2015 19:25 -0500With just under 24 hours until Monday's final summit after which even JPMorgan now agrees the ECB will be forced to use a nuclear option and limit or cut Greek ELA thus imposing capital controls as a "negotiating tactic", earlier today both France and Germany told Greece it must have a reform deal agreement with the Troika finalized and delivered before a crucial leaders’ summit between Athens and its creditors on Monday; in other words before trading opens on Monday.
Credit Market Warning
Submitted by Tyler Durden on 06/21/2015 18:15 -0500There are large signs of stress now present in the credit markets. You might not know it from today's multi-generationally low interest rates, but other key measures such as liquidity and volatility are flashing worrying signs. While some may hope that rising yields are signaling a return to more rapid economic growth, or at least that the fear of outright deflation has lessened, the more likely explanation is that something is wrong and it’s about to get... wronger.
Water Wars Crush California Wineries: "Whoever Has The Longest Straw Wins"
Submitted by Tyler Durden on 06/21/2015 17:30 -0500Eerily reminiscent of the determinedly evil oil baron from the movie 'There Will Be Blood', Reuters reports the growing tensions amid California's drought-stricken wineries are boiling over: "There is way too much demand. I blame a lot of vineyards like other people do... It's a matter of who has the longest straw at the bottom of the bucket." No one should worry though, because the government is here to help - with a new water management agency...
More and More Warn That a Crash is Coming
Submitted by Phoenix Capital Research on 06/21/2015 17:17 -0500More and more insiders are warning of a potential systemic event.
Geopolitics Will Trump Economics In Greece
Submitted by Tyler Durden on 06/21/2015 16:45 -0500Whatever the eventual financial costs to EU taxpayers of a Greek default, the political costs of a Greek exit are likely to be seen as unacceptable. Most likely the EU will allow a covert Greek default, disguised for the time being by extended repayment schedules, bogus refinancing formulae and possible delayed haircuts as bonds mature. They may insist that such moves are not a technical default. Despite that absurdity, our obedient press corps may even concur with such a characterization, and investors may be so thrilled that a relief rally occurs in stocks and bonds. Extend and pretend will once again be the only acceptable manner to confront our intractable problems.
Artist's Impression Of The New Crusades?
Submitted by Tyler Durden on 06/21/2015 16:00 -0500Deniers Repent... or face the consequences...
Who Said It?
Submitted by Tyler Durden on 06/21/2015 15:14 -0500... the long-term deficit and debt that we have accumulated is unsustainable. We can't keep on just borrowing from China, or borrowing from other countries because part of it is, we have to pay interest on that debt. And that means that we're mortgaging our children's future with more and more debt, but what's also true is that at some point they're just going to get tired of buying our debt. And when that happens, we will really have to raise interest rates to be able to borrow...
UK Government Study Finds: If Nothing Is Done, Expect Civilizations' Collapse By 2040
Submitted by Tyler Durden on 06/21/2015 14:30 -0500“We ran the model forward to the year 2040, along a business-as-usual trajectory based on ‘do-nothing’ trends - that is, without any feedback loops that would change the underlying trend. The results show that based on plausible climate trends, and a total failure to change course, the global food supply system would face catastrophic losses, and an unprecedented epidemic of food riots. In this scenario, global society essentially collapses as food production falls permanently short of consumption.”
Greek GDP: The Shocking Reality Vs IMF Forecasts; And Who Is To Blame For The Greek Implosion
Submitted by Tyler Durden on 06/21/2015 13:43 -0500With a Greek default, shortly followed by a Grexit, a collapse of the "irreversible union" (but... but... "political capital"), and ultimately the end of the latest European monetary union experiment (the latest in a long and illustrious series of prior failures) now seemingly imminent, the blame game has begun. As the NYT noted overnight "the recriminations that would then fly would be so bitter that they would inflict a second round of damage." But who is really to blame? Simple: anyone and everyone who willingly and voluntarily was complicit with the great "can kicking" bailout fiction of the past 5 years...
"Investing" Simplified
Submitted by Tyler Durden on 06/21/2015 13:02 -0500Where do you think we are?



