Mike Tyson: Master Game Theorist

"I have zero doubt that Japan is about to get smacked in the mouth. And when that happens the monetary policy calculus in Japan... and the UK... and even the EU will take on a very different shape. The domestic political dictates may still overwhelm the international economic consequences of extraordinary monetary policy easing."

Best Day For Gold Since September 2013

Following a heavy volume flush and reversal around midnight ET, gold prices surged today. The 3.3% rally is the best day since September 2013.

Late-Day Stock-Buying Panic "Proves" Jobs Data Was "Great"

Stocks end the week on a weaker note roundtripping off premature exuberance into the European close after jobs data that missed expectations (or did they). Of course the kneejerk response took the S&P and Dow to record highs before the weakness set in. Thanks to a late day panic-buying rip though, Nasdaq and Russell 2000 close the week unch - no need to call Mr. Bullard. Treasury yields collapsed today, ending the week down around 3-4bps. The USD sold off today to close the week up 0.6% with JPY and AUD the weakest against the greenback on the week. Gold (and silver) rallied to close the week almost unchanged. Interestingly, despite VIX's best efforts (almost breaking under 13), stocks rolled over this afternoon (then ripped). Oil prices pushed modestly higher early on and ended the day around $78.50. The ubiquitous Friday late-day buying panic ripped everything higher - on absolutely no news - "proving" that the jobs data was great (expect, why were safe haven bond and bullion so heavily bid?)

Forget Tesla 'D' - This Is The Fastest Electric Car In The World

When we think of electric cars, probably the first thing that comes to mind is the Chevrolet Volt. But if you think electric cars still deserve consideration, take a look at the “Grimsel,” which can accelerate from 0 to 60 in 1.785 seconds, using less than 30 meters of track. That’s nearly twice as fast as Tesla’s fleet Model S P85D. And it’s record-breaking.

"Surprise"

But... but... that weak jobs report was so very strong. Who could have possibly seen that coming?

Student And Car Loans Go Exponential, Courtesy Of Uncle Sam

Another month, another $14.5 billion increase in student and car loans, offset by a measly $1.4 billion in credit card debt, following last month's upward revised $200 million drop in revolving debt. Total consumer debt in September increase by $15.9 billion, just below the $16.0 billion estimate, and the problem is that with the Fed's credit injection fading, someone has to step on the borrowing pedal. Alas, if one takes away student and car loans, the credit creation is not nearly enough to push US consumption higher. In any event, the most amusing chart is the following. It simply screams sustainable.

Obama Authorizes Plan To Double Number Of Troops In Iraq

If you like your boots-on-the-ground, you can keep them... and have some more. Whether a strawman or not, Reuters reports that according to US officials, the U.S. military has drawn up plans to significantly increase the number of American forces in Iraq, which now total around 1,400, as Washington seeks to bolster Iraqi forces battling the Islamic State. The White House and Pentagon were expected to announce further details later Friday.

The New Normal: From $1 Billion IPO To Bankruptcy In 6 Months

"Surprises like this are poison to the stock market, and this is one of the big surprises," exclaims the head of listing for Nasdaq's Copenhagen exchange as OW Bunker A/S - a marine fuel bunker company - went from $1 billion-plus IPO in April to bankruptcy today.

Putin Signs Secret Pact To Crush NATO

Back in September, there was a summit meeting in a city that involved an organization that most Americans have never heard of. Mainstream media coverage was all but nonexistent. The place was Dushanbe, the capital of Tajikistan, a country few Westerners could correctly place on a map. But you can bet your last ruble that Vladimir Putin knows exactly where Tajikistan is. Because the group that met there is the Russian president’s baby. It’s the Shanghai Cooperation Organization (SCO), consisting of six member states: Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. We should care what’s going on inside the SCO. Once India and Pakistan get in (and they will) and Iran follows shortly thereafter, it’ll be a geopolitical game changer.

Obama's Week Just Got Worse: Supreme Court To Rule On ObamaCare Subsidies

Getting 'shellacked' in the Midterms, coming 2nd to Putin as the world's most powerful person, and now, as AP reports, The Supreme Court agrees to rule on insurance subsidies in a new challenge to ObamaCare. Simply put they will judge whether subsidies for middle- and lower-income people are legal... As Think Progress warns, "if it succeeds, the likely result will be a “death spiral” where higher premiums cause healthy consumers to drop out of the insurance market, which will cause higher premiums, which will cause more consumers to drop their insurance."

"It's Different This Time" Japanese Stock Market Swing Is Fastest Ever

In the space of the last 3 weeks, Japanese stocks have swung from the most overbought in 18 months to the most oversold in 3 years to the most overbought in 18 months again. This is the fastest and most violent swing in TOPIX on record as ever-more-desperate hot money chases central bank actions around the world. As Bloomberg reports, “Japan is a very unnerving market because it behaves like an uneducated brat,” said Mikio Kumada, Hong Kong-based global strategist at LGT Capital Partners, which manages about $50 billion. Following the double-whammy of GPIF allocations and BoJ expansion, he warns "you don’t know what it’s going to do in the next moment and in many ways it’s unpredictable."

"Normal"

Presented with no comment....

Why Matt Taibbi Thinks This Woman Is JPMorgan's "Worst Nightmare"

In reality, there is nothing surprising in Matt Taibbi's latest piece since returning to Rolling Stone from the Intercept, as it tells a story everyone is by now is all too familiar with: a former bank employee (in this case Alayne Fleischmann) who was a worker in a bank's (in this case JPM) mortgage operations group, where she observed and engaged in what she describes as "massive criminal securities fraud" and who was fired after trying to bring the attention of those above her to said "criminal" activity. The story doesn't stop there, and as Carmen Segarra already showed, when she revealed that Goldman runs the NY Fed, once Alayne was let go and tried to "whistleblow" on the house of Jimon from the outside, she found the that US Department of Justice headed by Eric Holder is just as, if not more, corrupt, and in his desperate attempt to prevent discovery and bring JPM et al to justice, he would stretch the statue of limitations on frauds committed during the crisis long enough to where nobody had any legal recourse any more, up to and including the US taxpayer.

Yellen Supports Draghi's QE, Warns Of Heightened Volatility

Speaking from The Bank of France is crap-covered Paris, Janet Yellen stated that "bond purchases have ben effective", and encouraged Mario Draghi to print moar, noting "central banks need to be prepared to employ all available tools, including unconventional policies, to support economic growth and reach their inflation targets," but warned from the other side of the her two faces, that, "policy normalization will lead to heightened volatility."