Archive - Aug 2014 - Story

Sadly, the Spanish missionary priest who became infected with Ebola treating patients in Liberia has died in hospital in Madrid. As AP reports, Father Miguel Pajares died despite receiving the experimental drug ZMapp, and is one of 3 patients to receive it (the American doctors in Atlanta being the other 2). This morning the WHO confirmed the use of "experimental, unproven" Ebola drugs such as ZMapp was ethical in this situation, as the death toll tops 1000 in what WHO called the "most severe and most complex outbreak of Ebola virus disease in history." Perhaps most concerning of all this morning is news that China is quarantining 8 of its West African nurses (as the death toll among health workers surges).

• Gunshots, tear gas in riots over shooting of black Missouri teen (Reuters)
• Russia sends big aid convoy to Ukraine, West sounds warnings (Reuters)
• Maliki Bid to Block Successor Escalates Crisis in Iraq (BBG)
• Poor German data pushes euro toward 9-month lows against dollar (Reuters)
• Derivatives Reincarnate Boosting Debt Wagers in New Era  (BBG)
• Israel Says No Gaza Talks Progress as Hamas Warns on Truce (BBG)
• Traders brace for research crackdown as easy money dries up (Reuters)
• U.S. Bank Profits Near Record Levels (WSJ)
• Unproven Ebola Drugs Are Ethical to Use in Outbreak: WHO (BBG)
• Caesars’ CEO Loveman Says No Qualified Bidders for Revel (BBG)

If the global equity "markets" were in need of a sharp "horrible news is great news" boost overnight, it came courtesy of Germany's ZEW investor confidence survey, which printed at a stunning 8.6, a plunge from the 27.1 in July and far below the 17.0 expected - the lowest print since December 2012 -largely suggesting that a European triple-dip is all but assured. And if that wasn't enough, strong language from John Kerry, assured to fan the flames of geopolitical instability, came hours ago when the US SecState said even more Russian sanctions may be coming. And just to make sure the NY Fed trading desk has to come up with a new narrative is the latest development in the Russian "humanitarian convoy" saga, which as we reported last night, has departed Russia but which Ukraine is now refusing to allow into its country. All in all, it's is setting up to be another super bullish day in the rigged markets for which all that matters is... Tuesday.

Here is a video of what the alleged Russian convoy, that is about to enter east Ukraine, looks like: some ~300 military vehicles, all repainted "Humanitarian White."

UPDATE: As darkness falls once again in Ferguson, Police are out en masse and ordering people back to their homes, using tear gas and rubber bullets...

A day of protests and vigils Sunday over the death of Michael Brown, a black teenager who was killed (allegedly shot 8 times) following an altercation with a Ferguson police officer, turned violent overnight with reports of riots and looting... and the violence is continuing today. As the following images suggest, there was a lot more bubbling under the surface of middle America than concern about one young man's death as Ferguson's full SWAT team is in force. As one young protester screamed, "the revolution will not be televised."

"The U.S. government has grown strangely quiet on the accusation that it was Russia or her allies that brought down the Malaysian airliner with a buk anti-aircraft missile... When evidence contradicts our government’s accusations, the evidence is never revealed to the public—for national security reasons, of course... Too bad we can’t count on our government to just tell us the truth and show us the evidence. I’m convinced that it knows a lot more than it’s telling us."

Forget London's Mayfair, ignore New York's Central Park West; the world's most expensive home (on a square-foot basis) is at the exclusive Victoria's Peak neighborhood in Hong Kong. No. 1 Twelve Peaks is a 4,661 square foot home that, if sold for list, is valued at a stunning $22,675 per square foot... As WSJ notes, those interested in the latest listing will be encouraged to act fast: A buyer will be offered a 3% discount if a deal is made within five months.

We now know the devastation that the Polar Vortex 1.0 caused on a fragile US economy in Q1 - because, it must be the weather, right? and not stagnating wages and over-leveraged consumers. So, it is woth great concern that we report, Accuweather states that Polar Vortex 2.0 will trurn early in the Northeast, "The vortex could slip at times, maybe even briefly in September for the Northeast," crushing the hopes of v-shaped recoveries in US GDP (or will it be different this time?)

According to yesterday’s Wall Street Journal, the bailed out financial criminals at Goldman Sachs are set to launch the latest and greatest toxic derivative product directly into the portfolios of willing muppets the world over... and it all starts this September. Yes, it’s called the “Fixed Income Global Structured Covered Obligation,” (ironically close to the acronym FIASCO) and no, you will not have a clue what’s in it. No seriously, you won’t have a clue.

Gosh, isn’t that what we spent eight years, 4,500 lives, and $1.7 trillion doing? And how did that work out? The Iraq war is just like the US financial system. The people in charge can’t imagine writing off their losses. Which, from the policy standpoint, leaves the USA pounding sand down so many rat holes that there may be no ground left to stand on anywhere.

"You give me this office, and in turn, my fears, doubts, insecurities, foibles, need for sleep, family life, vacations, leisure is gone. I am giving myself to you. The American people should have no patience for whatever is going through your head because you have a job to do. You don't make that decision unless you are prepared to make that sacrifice, that tradeoff. Those who make mistakes in the president's office make them because they haven't fully thought through the dimensions of that choice."

- Barack Hussein Obama

"The US government's decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself. While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar's eventual demise as the world's reserve currency."

While Hillary explains that Obama is “thoughtful” and “incredibly smart,” the unannounced 2016 Presidential candidate had a few less than supportive words for the current Iraq-bomber-in-chief. In an interview in The Atlantic magazine, Bloomberg reports Clinton warns Obama lacks a specific doctrine, adding "great nations need organizing principles, and "don't do stupid stuff" is not an organizing principle."

At the start of the year, Russia said 'nyet' to 132 Japanese cars imported through Vladivostok due to high radiation levels. Fast forward seven months and as AutoWeek reports, it appears the Japanese are up to their old tricks - desperate to make Abenomics look like it's working by jamming exports higher - a total of 70 used cars imported from Japan and found to have increased levels of radiation are being stored in Bishkek, Kyrgyzstan. The import of used Japanese cars is big business in Central Asia, especially in Mongolia and the Russian far-east regions, but several batches of cars have been seized by the government during the last three years - despite 'agreements' from Japan.