Archive

March 31st, 2014

Check Out These 8 New "Record Highs"

There’s nothing like a nice cup of reality 'tea' first thing on Monday morning. Periodically, we like to scan headlines for phrases like “record high” or “all time high”... in today's case, the results can often given an interesting big picture perspective of what’s happening in the world.

Fed Releases Taper'd POMO Schedule - Allows 3 Days For Shorting In April

As expected, the Federal Reserve has released its Permanent Open Market Operations (POMO) non-monetizing-of-the-debt schedule for April with $30 billion of Treasury purchases (and $25 billion MBS). This is a 33% reduction from the 'normal' $45 billion Treasury purchase of last year. The POMO schedule very generously allows traders 3 days of non-money-printing potential shorting opportunities (Friday 4th, Thursday 17th, and Wednesday 30th)... however, this Friday is non-farm payrolls day and we will not be allowed a red day after that...

$242 Billion: That Is How Much Record "Window Dressing" Banks Got Today Thanks To The Fed

Just over an hour ago the Fed disclosed that as part of its most recent reverse repo operation, it had handed out to 93 dealer banks and other financial intermediaries, both foreign and domestic, some $242 billion in Treasurys in what is now the biggest reverse repo operation in history, a privilege for which the collateral-starved banks paid the Fed the king's ransom of 0.05% in annual interest, i.e., nothing.

Mark Faber: The Old World Order Is Over

"The US reached a peak in prosperity and influence in the world in the 1950s or 1960s," Marc Faber explains to an Australian audience at the recent World War D conference; but since the 70s the superpower has been locked into a cycle of bubbles, busts and growing debt. "There are some people who claim to be economists who will tell you debts do not matter," but the real story is different, he warns. "When you drop dollar bills into the economy... it won't lift all prices and assets equally at the same time," Faber explains, "in the 60s and 70s, extra money flowing through the economy inflated wages; in the early 2000s, money printing inflated commodities;" but, the Gloom, Boom, & Doom Report editor points out, this price and asset growth is never equal, warning that "we live in a new word... where the old world order is largely bypassed."

Former Chinese President Asks Current One To Curb Crackdown On Criminals And Corruption

When one reads stories such as the following report from the FT, in which we learn that former Chinese president Jiang Zemin "has urged the current leadership to rein in an anti-corruption campaign that is proving the harshest in decades and is seen as threatening the interests and networks of some Communist party elders", or said otherwise - his cronies, aside from being utterly speechless at the rapid unravelling of the bizarro world, all one can say is - expect such developments in the US in a few years time, when then former president Obama asks Clinton, Christie or whoever the then-reigning dictator of the totalitarian states of America is, to take it easy on the Corzines of the world.

Meanwhile At The Obamacare Website...

Despite months to plan and an early morning failure today already, the Obamacare wesbite Healthcare.gov is down once again...

*AP SAYS HEALTHCARE.GOV WEBSITE NOT ACCEPTING NEW APPLICANTS, TECHNICAL PROBLEMS PREVENTING HEALTHCARE.GOV APPLICATIONS: AP

Of course the frequency of visitors is having some effect and the adminstration has once again extended the deadline for enrolment as long as participants are in line today. Perhaps, Obama should ask the HFTs how they cope with the volume?

US 'Sacrifices' India Ambassador To Appease Modi's Resurgence

The surprising surge in popularity of Narendra Modi's party ahead of India's elections (another apparent 'miss' by US intelligence) has left the Obama administration needing to "clean the slate." Only a year after taking office, US ambassador to India Nancy Powell has suddenly resigned her post (following press speculation) as the administration explained "was planned for some time, she will retire to her home in Delaware before the end of May." This appears a clear recognition that a Modi government is likely and a problem for the US who cancelled Modi's visa in 2005 over "severe violations of religious freedom." Another red line coming up?

Attention Deficit Dystopia

"The USA is exhibiting pretty severe signs of that sclerosis in the demented behavior of its leaders in episodes such as the current unnecessary manufactured fiasco over Ukraine to the physical deterioration of our towns, roads, bridges, and all the plastic crap we managed to smear over the mutilated landscape to the comportment of our demoralized, mentally inert, drugged-up, tattoo-bedizened populace of twerking slobs."

Japan Gives Residents All Clear To Return To Fukushima Disaster "Hot Zone"

As we reported last night, Japan's economy may once again be relapsing into a slowing phase, perversely well in advance of the dreaded sales-tax hike which many expect will catalyze Japan's collapse into another recession as happened the last time Japan had a tax hike, but that doesn't mean its population should be prevented from enjoying the heavily energized local atmosphere buzzing with the hope and promise of imminent paper-based "wealth effects" for those long the daily penNikkeistock rollercoaster.... and just as buzzing with copious gamma rays of course. Which is why for the first time in over three years, since Japan's Fukushima nuclear disaster, residents of a small district 20 km from the wrecked plant are about to be allowed to return home. Because if the honest Japanese government says it is safe, then so it must be.

David Stockman: Why We Are Plagued With Drivel Masquerading As Financial Reporting

One of the evils of massive over-financialization is that it enables Wall Street to scalp vast “rents” from the Main Street economy. These zero sum extractions not only bloat the paper wealth of the 1% but also fund a parasitic bubble finance infrastructure that would largely not exist in a world of free market finance and honest money. The infrastructure of bubble finance can be likened to the illegal drug cartels. In that dystopic world, the immense revenue “surplus” from the 1000-fold elevation of drug prices owing to government enforced scarcity finances a giant but uneconomic apparatus of sourcing, transportation, wholesaling, distribution, corruption, coercion, murder and mayhem that would not even exist in a free market. The latter would only need LTL trucking lines and $900 vending machines. In this context, the sprawling empire known as Bloomberg LP is the Juarez Cartel of bubble finance.