Archive - Sep 2014 - Story

The uncorrected half-cycle advance since 2009 has been accompanied by a resurgence of proponents advocating that stocks should simply be bought and held indefinitely, regardless of price. As Graham & Dodd warned, "it is important to note that mass speculation can flourish only in such an atmosphere of illogic and unreality." The over-arching reality is that there is a cliff at the edge of what appears to be a permanently high plateau.

Despite promises that inflation is "contained," the dollar ain't quite what it used to be...

While we doubt the pope is much of a trader, based on his latest comments, speaking during a visit to Italy's largest military cemetery, where he was commemorating the centenary of World War I and where he said that a "piecemeal" World War III may have already begun, we assume he too would join the confusion of the BIS and every other carbon-based life form, wondering how it is possible that risk assets are at all time highs which the world is not only teetering on the edge of a new global conflict but may have already in fact entered it. Oh wait, the central banks, never mind.

"After the spell of volatility in early August, the search for yield – a dominant  theme in financial markets since mid-2012 – returned in full force. Volatility fell back to exceptional lows across virtually all asset classes, and risk premia remained  compressed. By fostering risk-taking and the search for yield, accommodative monetary policies thus continued to support elevated asset price valuations and  exceptionally subdued volatility."

For a mass of people so easily terrified by guys in caves funded and armed by our intelligence services and “allies” in the Persian Gulf, the American public talks with such armchair bravado when it comes to launching bombs from drones and sending other people’s children to die. Makes you wonder though, which one is it? Is the American public actually the tough guy soldier it pretends to be when cheering overseas military interventions, or is it really a scared, propagandized, coward hiding in one of our nation’s endless cubicle rows? Unfortunately, based on recent opinion polls demonstrating approval for military action against ISIS, it appears to be the latter. The former is merely a front put on by that terrified, economically insecure, silently suffering automaton.

With polls and surveys showing a slight bias to a "No" vote for Scottish Independence - but realistically too close to call - it appears UK Prime Minister Cameron has once again flip-flopped his strategy to deal with the northern menace. Initially it was one of scaremongery, warning of Scottish safety in light of global terrorism; then Cameron softened his stance proclaiming how "heartbroken" he will be if "our family was ripped apart." Now, just a day later, according to The Sunday Times, Cameron will unveil his latest push tomorrow that "there will be no way back" if they vote for independence, warning that a split from the U.K. will see the two countries go their separate ways forever, with the vote result a "once-and-for-all decision." Media bias is increasingly evident as the establishment unleashes its last minute full court press promising Scots "can have the best of both worlds." if they back the union...

While Uber faces lawsuits and blockades around the world, it appears Toronto just took the Taxi 2.0 experience to a whole new level. Deadmau5, the famous Canadian DJ, is the latest to become an Uber X driver, and as Jalopnik shows below, he turns up in his brand new Mclaren 650S to pick up a few fares...

Q. What are traders talking about at the present time here at the New York Stock Exchange?

Cashin: We are concerned about two questions. First, how will the Fed do in keeping money reasonably easy without causing inflation? Second, where do we stand with the current geopolitical challenges? For now, these challenges seem to be short term concerns. But should we begin to see a financial contagion and pressure building on banks in Europe, perhaps out of the Ukraine situation, things could theoretically turn into what I call a «Lehman moment». That is when markets come under pressure but seem to be under control, and then things change suddenly.

The US economy is dead. The Fed has known this for a long time, but pumped it up to where it is now to draw in all the greater fools, the so-called big investors who have made money like honey from QE and ZIRP. They are the greater fools. The American real economy ceased being a consideration long ago. We’re in for big surprises, and they won’t be pretty, they’ll be pretty nasty. There are far too many people who think of themselves as smart who don’t see the difference between a theater play and a reality show. The Fed will raise rates because that will make the biggest banks the most money. There’s nothing else that matters. The Fed can’t revive the US economy, that’s just a foolish notion. But it can suck a lot of wealth out of it.

First it was the 'broad coalition' that appeared a little narrower than President Obama explained to the world last week. Today, 2 more crucial aspects of the 'strategy' appear to be faltering. Despite the promise of $500 million to train "moderate" Syrian terrorist/rebels to fight ISIS, GlobalPost reports Syrian rebels and jihadists from the Islamic State have agreed a non-aggression pact for the first time. Under the deal, "the two parties will respect a truce until a final solution is found and they promise not to attack each other because they consider the principal enemy to be the Nussayri regime." Not exactly what Obama and Kerry had in mind. But it is John Kerry's trip to Iraq that appears to have had blowback already as Reuters reports the newly installed US-friendly PM al-Adadi ordered his air force to halt strikes on civilian areas, "even in those towns controlled by ISIS," just a day after Kerry's visit (which left Turkey explaining how it would not support US airstrikes either). So far, so good?!

What’s the easiest way to make a 500x return on investment?

What does an NFL cheerleader cost?

In yet another gruesome video, just day after President Obama declared war, ISIS has released "a message to the allies of America" with the execution of another captive: *ISLAMIC STATE RELEASES VIDEO SHOWING BEHEADING OF DAVID HAINES. British Prime Minister David Cameron has called this "an act of pure evil," and will hold a cabinet meeting on the matter tomorrow, promising "to hunt down these murderers."

When it comes to the poorest quartile of US society, some 14 million people, any suggestion that US society is deleveraging and setting the stage for pent up releveraging and thus, economic growth, is dead wrong. In fact, as the Fed's triennial Survey of Consumer Finances, released last week showed, America's poorest have never been more in debt!

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