Archive - Sep 22, 2015 - Story

Germany’s ZDF public television network headlines on Tuesday September 22nd, "New U.S. Atomic Weapons to Be Stationed in Germany," and reports that the U.S. will bring into Germany 20 new nuclear bombs, each being four times the destructive power of the one that was used on Hiroshima. Hans Kristensen, the Director of the Nuclear Information Project at the Federation of American Scientists, says, "With the new bombs the boundaries blur between tactical and strategic nuclear weapons.”

The economics of Hillary Clinton is first and foremost about expanding the power and scope of the US government, and as government gains more control, the more employers and business owners need to be in the good graces of American politicians. To be blunt, Clinton believes that people like herself can continually loot US businesses, with business owners paying their protection money without complain. After all, Hillary knows best; just ask her.

With the SEC moving to head off the risk of a bond market meltdown triggered by a dangerous combination of illiquidity and bond fund proliferation, WSJ decided to see which fund providers are the most at risk in a crisis. The list may surprise you...

"The people cannot be all, and always, well informed. The part which is wrong will be discontented, in proportion to the importance of the facts they misconceive... what country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to facts, pardon and pacify them."

WTI crude prices jerked to the highs of the day after API reported another larger than expected (and bigger than last week's 3.1mm draw) inventory draw of 3.68 million barrels (and Cushing fell 490k).

With a call to “end the private prison racket in America,” a group of progressive lawmakers on Thursday introduced a bill that seeks to subvert the reigning “pro-incarceration agenda” by banning private prisons, reinstating the federal parole system, and eliminating quotas for the number of immigrants held in detention.

Hot on the heels of British military threats of a coup, the potential for a truly 'red' black swan of an event has reared its ugly head in China, just as Xi tours America. As Reuters reports, bitterness is growing within China's armed forces to President Xi Jinping's decision to cut troop numbers by 300,000, and, according to a source and commentaries in the military's newspaper, considerable effort will be needed to overcome opposition to the order with PLA official sources warning "people are worried, it's been too sudden."

The negative feedback look between Brazil's political and economic crises is serving to make each day worse than the last. Tuesday was no exception...

The aggregate Buybacks to Free Cash Flow ratio for the S&P 500 exceeded 100% for the first time since October 2009. The ratio hit 108% on a TTM basis at the end of Q2, which represented a 12.9% increase quarter-over-quarter and a 42% increase year-over-year. The 10-year median ratio was 72.2%. And that, in a nutshell, is why the market is tumbling today - the biggest buyers of stock in the past 2 years, the corporations themselves, just priced themselves out of the market and no longer generate the cash needed to push their own stock to new all time highs.

Allegedly spotted on Sand Hill Road and the West Side Highway...