Archive - Nov 19, 2015 - Story

The Fed was out in force yesterday peddling some pretty heavy-duty malarkey about the up-coming rate liftoff at the December meeting..."If we begin to raise interest rates, that’s a good thing." That’s not a bad thing." Goldman is putting out the final mullet call for this Bubble Cycle because it knows that this bull is dying; that insiders still have massive amounts of stock winnings to unload; and that the clock is fast running out. The expiring clock is evident in the S&P 500’s one-year round trip to nowhere. Despite the fact that the Fed has ponied-up a stick save at every single meeting this year, the market’s 27 separate efforts to rally have all failed for the simple reason that the jig is up.

"And certain things will be done that we never thought would happen in this country in terms of information and learning about the enemy. And so we’re going to have to do certain things that were frankly unthinkable a year ago."

UPDATE: All-Clear given.

If fearmongery was the goal, it appears to have been achieved. Police have reportedly shut down the 14th Street bridge in Washington D.C. in both directions after a package reportedly fell from a truck.

Having fallen for 20 straight days, crushing the hopes and dreams of the mid-year bounce - and thoroughly breaking down from seasonally positive tendencies - The Baltic Dry Freight Index has collapsed to all-time (back to 1984) record lows. As on shipping broker exclaimed, “This market is looking like a disaster and the rates are a reflection of that. It is looking scary for the market and it doesn’t look like there is going to be any life in the market in the near term.”

Having detailed the "perverted nonsense" that is the collapsing and negative US swap spreads (here, here, here, and here) and noted money manager's concerns that the big question remains whether there is "something bigger brewing under the surface that so far hasn’t been pinpointed yet," it appears Goldman Sachs feels the need to 'explain' the anomaly in what appears an effort to calm fears about the broken money markets. Of course, we don’t have to figure out what the “market” is saying about a negative spread because it isn’t saying anything other than “something” is wrong and even Goldman admits this signals funding and balance sheet strains are worsening since August.

Moments ago, the in a 241-185 vote, the House passed passed H.R. 3189, aka  Fed Oversight Reform and Modernization Act. The bill would make changes to how the Fed conducts monetary policy and regulatory activities and would direct the Fed to take a rules-based approach to interest rate decisions; require audits of more Fed functions such as monetary policy; and place restrictions on its emergency lending powers. In other words, everything that the banks that are direct and indirect stakeholders in the Fed would fight to the death to prevent.

There are seemingly always “good reasons” why troubles in a sector of the credit markets are supposed to be ignored – or so people are telling us, every single time. Some still recall how the developing problems in the sub-prime sector of the mortgage credit market were greeted by officials and countless market observers in the beginning in 2007. Meanwhile, the foundation of the economy continues to look rotten (the newest round of Fed surveys has begun with another bomb and other manufacturing-related data continue to disappoint as well). This isn’t going to end well, if history is any guide.

In 2016 just three countries will grow above Goldman's blended global average growth rate of 3.6%: India, China and Indonesia.

Bonds ain't buying The Buy-The-F##king-Paris-Attack-Dip rally in stocks...

The Fed has created a dead end street for everyone not in their .1% clientele... We’re all muppets to the banking cabal running this morally and financially bankrupt military empire of debt.

Consider who was buying... and who is buying now?

It appears there is a simple solution to regaining animal spirits in America... mandate black Americans to buy Nasdaq stocks...

What else do you buy when monetary policy failure concerns loom...

SUNE is down almost 8% this morning, backunder $3.00, as yesterday Twitter-based "Blackstone buying SUNE Debt" rumor is dashed in the epic realization that you might be the last one in line for the exits...

"If they do hike, watch the long-end," was the warning in September for clues to a possible policy error by The Fed, and between yesterday's mainstream narrative confirming the FOMC Minutes practically guarantee a December rate hike; and our discussion of the lower-for-longer 'natural rate' QE hints, it appears the bond market is already beginning to price in a "policy error."