Archive - Aug 27, 2015

Tyler Durden's picture

It's Official: China Confirms It Has Begun Liquidating Treasuries, Warns Washington





As Bloomberg reports, "China has cut its holdings of U.S. Treasuries this month to raise dollars needed to support the yuan in the wake of a shock devaluation two weeks ago, according to people familiar with the matter. Channels for such transactions include China selling directly, as well as through agents in Belgium and Switzerland, said one of the people, who declined to be identified as the information isn’t public. China has communicated with U.S. authorities about the sales."

 

williambanzai7's picture

THe EMPReSS MoNeY PRiNTeR...





QE in reverse...

 

Tyler Durden's picture

The Scariest Number For The Oil Industry: $550 Billion





Just over half a trillion dollars: that's how much cash US shale producers and other oil industry companies will need to repay in maturing debt over the next 5 years.

 

Tyler Durden's picture

Yuan Strengthens Most Since March, China Unveils New Bailout Source After Rescue Fund Runs Out Of Fire-Power





Update: China readies new bailout mechanism - pooling CNY2 Trillion of Pension funds for "investment"

A busy night in AsiaPac before China even opens. Vietnam had a failed bond auction, Japanese data was mixed (retail sales good, household spending bad, CPI just right), Moody's downgrades China growth (surprise!), China re-blames US for global market rout, and then the big one hits - China's bailout fund needs more money (applies for more loans from banks) - in other words - The PBOC just got a margin call. China margin debt balance fell for 8th straight day (although the short-selling balance picked up to 1-week highs). China unveiled some economic reforms - lifting tax exemption and foreign real estate investment rules. PBOC fixesds the Yuan 0.15% stronger - most since March, but even with last night's epic intervention, SHCOMP looks set for its worst week since Lehman.

 

Tyler Durden's picture

China Gets Creative, Turns To Swaps To Manage Yuan





Managing markets is hard, especially when you’re doing it on a daily basis and sometimes you have to get creative, which is why we weren’t entirely surprised on Thursday when trader chatter indicated that at least one big Chinese bank (on behalf of the PBoC of course) was stomping around in the onshore swaps market...

 

Tyler Durden's picture

The Great Wall Of Money





Since the GFC, 'The Great Wall of Money' that Bretton Woods II has furnished via its vendor-financing relationship, has masked the deleveraging of our world economy. The Great Wall is about to collapse and fall.

 

Tyler Durden's picture

US Automaker Panic Button Looms After China's Top Carmaker Warns Of "Grim" Outlook





Just two weeks ago we explained in a few simple charts why US auotmakers have a major problem looming over them. Today, as Reuters reports, that "if we build them, they will come" strategy has imploded as China's largest automaker warns "the domestic market situation in the second half of the year remains grim." With Q2 US GDP driven by a massive inventory surge, and the majority of that from autos, any hope for a sales rebirth to burn through that over-burden is a long-lost dream now as SAIC sees little to no growth over 2014.

 

Tyler Durden's picture

Global Grain Stocks At 30 Year Highs Mean Food Deflation Is Next





"Despite a slight tightening in the maize carryover, global grain stocks are forecast at 447m t, a 29-year peak."

 

Tyler Durden's picture

The Best Explanation If Exposed As An Ashley Madison Member...





... comes from Dan Loeb of Third Point, who as Gawker points out was a member of the hacked cheating website: due diligence.

 

Tyler Durden's picture

Guest Post: The Donald Exposed (A Reality Check For Trumpeteers)





It’s all emotional bullshit because what one hardly ever reads about from these Trumpeteer Marionettes is an actual discussion about Trump on the issues. It’s more important to squeeze out yet another orgasmic fountain of joy because he threw out some Univision reporter; “Oh, look! Isn’t zee Donald just Wunderbar!!” Screw that. So, let’s look at what The Donald believes... by his own words.

 

Tyler Durden's picture

"Computer Glitch" Plaguing ETFs Is "Unrelated" To Monday's Flash Crash, BNY Swears





During Monday's flash crashing mayhem, the fragility of the ETF pricing system was exposed for all to see. While common sense dictates that the extreme market moves, trading halts, and tripped circuit breakers may have had quite a lot to do with the epic divergences between NAV and unit pricing, the real culprit was a "computer glitch" caused by a botched "systems change" last Saturday. The fact that the trouble calculating NAVs across nearly 800 mutual funds happened on the very same day as the flash crash is strictly coincidence. 

 

Tyler Durden's picture

Remembering The Summer Of 1929





The Summer of 1929 was unusually hot, with the stock market going up and down like a roller coaster, making investors and pundits almost dizzy. That is, until the great push up to the very height of the market in early September. It was the laissez-faire abuses of the 1920’s, the reign of supply side economics, the institutionalized political corruption of easy money, an oversized, overly influential and powerful financial/industrial sector that set the stage for the terrible Depression of the 1930’s. It also gave rise to the many reforms introduced by the FDR administration. Most of which have been steadily overturned, one by one, by the big money interests who care for nothing but themselves, and would do it again, and again, if allowed to do so.

 
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