Archive

January 29th

Tyler Durden's picture

3 Things - Fed Mistake, ECB QE, Housing





It is my expectation, unless these deflationary trends reverse course in very short order, that if the Fed raises rates it will invoke a fairly negative response from both the markets and economy.  However, I also believe that the Fed understands that we are closer to the next economic recession than not.  For the Federal Reserve, the worst case scenario is being caught with rates at the "zero bound" when that occurs. For this reason, while raising rates will likely spark a potential recession and market correction, from the Fed’s perspective this might be the “lesser of two evils.”

 

Tyler Durden's picture

WTF Chart Of The Day: Baltic Dry Index Crashes To Lowest In 29 Years





Quietly behind the scenes - and not at all reflective of a collapsing global economy (because that would break the narrative of over-supply and pent-up demand) - The Baltic Dry Index plunged over 5% today to 632... That is the lowest absolute level for the global shipping rates indicator since August 1986...

 

Tyler Durden's picture

After VISA's Stock Split, The Most Important Company In The Dow Jones "Industrial" Average Is...





As if they did not already have their tentacles in everything else already, TBTF, and depositor-insured hedge fund Goldman Sachs is about to become the most heavily-weighted component of the Dow Jones "Industrial" Average. Following Visa's moments ago announced 4:1 stock split, Goldman will now represent just shy of 7.00% of the DJIA.

 

Tyler Durden's picture

CME Hikes Silver Margins By 11%





In a day in which silver was pounded the most since September 2013 without any fundamental reason to explain this weakness (aside for the extensively discussed Precious Metals-USDJPY funding pair trade, so favored by the central banks to punish gold/silver while pushing risk higher), many are wondering: what was the reason for this crash? Well, in a day in which Yellen now openly advised Democrats in a non-public setting about Fed policy, is it that ludicrous to assume that someone leaked the following announcement made after the close by the CME, namely that silver margins were just hiked by 11%?

 

Tyler Durden's picture

Unleash The Veto: Senate Passes Keystone XL Pipeline Bill





Following Congress, The Republican-led Senate just passed The Keystone XL Pipeline Bill - as expected:

*SENATE PASSES BY 62-36 BILL TO APPROVE KEYSTONE, DEFYING OBAMA

Nine Democrats joined all of the Republicans who were present in supporting the legislationNow, it is time for President Obama to unleash The Veto Pen...

 

Tyler Durden's picture

Janet Yellen Now Advises Democrats What The Fed's Monetary Policy Plans Are





The WTF moment has arrived: the moment when the Chair of the "independent" Fed tells an audience of Democrats, away from the public, just what her plans for monetary policy are in private:

YELLEN TOLD DEMOCRATS NO RATE INCREASE `IMMEDIATELY': SCHUMER

We knew some Fed member would speak today to boost stocks but had no idea it would be Yellen herself.

 

Tyler Durden's picture

Cramer Does It Again: Box Is "Home-Run" In "Remarkably Healthy Market"





On Monday - after the close - after a big dead-cat-bounce off the post-Greek-election overnight lows, none other than CNBC's Jim Cramer announced to his dwindling audience that "he's calculated that it's actually a remarkably healthy" market... The Dow is now over 300 points lower, despite his showing investors the "eight signs of a healthy market." However, it is his energetic pitch for the looming Shake Shack IPO on the heels of the "home-run" Box IPO (which is now below its release price and down well over 20% from the highs in 3 days) that, we suspect, confirms the utter collapse of his listening or viewing audience (no matter how 'wrong' the surveys are).

 

Tyler Durden's picture

The Wreck Of The Monetary Hesperus





At the end of the day, there is nothing behind the curtain at the Eccles Building except for the specious doctrine of wealth effects. Fractional changes in the money market rate are of relevance only to the day traders and robo machines which occupy the casino. Fed policy is designed to keep them dancing. It rests on the delusional hope that the drug of ZIRP or near-ZIRP can keep the stock market averages rising and a trickle down of extra spending by the wealthy flowing into the reported GDP and job numbers. History proves beyond a shadow of doubt that bubbles fueled by bad money ultimately splatter into a world of harm. The Fed is not only ignoring the coming storm, but is actually fueling its intensity with malice of forethought.

 

Tyler Durden's picture

Either Oil Soars Back To $88, Or Energy Stocks Have To Tumble By Over 40%





The energy market in a nutshell: Either energy sector earnings have to surge by 70%, implying a near doubling of oil prices to $88, for the forward P/E multiple to return to normal, or the Energy sector prices have to crash from 549 today to 323, where it would trade down to its historic forward P/E multiple, suggesting a price drop of over 40%!

 

Tyler Durden's picture

Is The Swiss Franc Tumbling Due To Month-End SNB Window-Dressing?





Facing what is likely the largest loss in its history, it would seem The Swiss National Bank has undertaken what every good asset manager does nowadays - Month-End window-dressing. The Swiss Franc has collapsed in the last week or so (against the Dollar and Euro) as a mysteriously active seller of Swissy has managed levels up to smooth out the collapse in value of the SNB's balance sheet...

 

Tyler Durden's picture

Dutch National TV News Broadcast Interrupted By Gunman Demanding Airtime, Building Evacuated





Update: DUTCH NOS SHOWS FOOTAGE OF MAN ARRESTED WITH GUN IN STUDIO

ANP reports a person with gun disrupted Dutch evening news broadcast on live TV, demanding airtime...

*DUTCH BROADCASTER NOS BUILDING EVACUATED, ANP SAYS

UPDATE: The man has reportedly been 'over-powered and taken away'.

 

Tyler Durden's picture

Signs That The Economy Is Weakening





For months now we have been discussing that despite the "hopes" that this time is different, there is little chance that the U.S. can remain an island of economic prosperity in the sea of global deflation. The following series of charts all suggest that current hopes of surging economic growth in the U.S., over the next several quarters, will likely be met with disappointment.

 

Tyler Durden's picture

Putin Pivots Back: Russia Confirms Willingness To Provide Financial Aid To Greece





We suggested the Greek pivot from Europe to Russia was building previously, and now, we get confirmation from Russia's finance minister Anton Siluanov that the pivot could be mutual, who told CNBC in the interview below:

*RUSSIA WOULD WEIGH FINANCE FOR GREECE IF ASKED, SILUANOV: CNBC

With fire and brimstone spewing from Germany over the potential for Greece to veto any and everything, it seems Russia may just have stymied Europe's leverage over the newly democratic nation.

 
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