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New York: From "Disneyland For Wall Street" To "Coffin-Sized" Living Spaces

There is no question about it, NYC feels more like “Disneyland for Wall Street” than ever before. The very rich are doing very well, everyone else, not so much. We are often told by charlatans and mainstream media propagandists that this mythical rising tide of wealth lifts all boats. If that’s the case, we find it quite perplexing that the homeless population in America’s financial center is exploding five years into the so-called recovery (homeless people are living in coffin-sized spaces inside the frame of the Manhattan Bridge). Meanwhile, let’s not forget that 22% of the city is on food stamps. How is this possible? Because we have witnessed five years of egregious corruption and crony capitalist theft, not a genuine recovery. That’s how.



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This Is The Headline That Broke Today's Downward Momentum

You know it's bad when... the red flashing headline that sparked the accelerating downward momentum in US equity markets to stop and reverse on a dime is...

*JAPAN TO DOWNGRADE ECONOMIC ASSESSMENT IN APRIL REPORT: NIKKEI

Proving once again how insanely non-sensical this bad-news-is-good-news market has become. Fundamentals, schmundamentals. However, as we noted here, this bad news is not going to lead to the good news that stocks are hoping for...



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Direct Edge Breaks

It is oddly ironic to see BATS declare self help against EDGX (since the two are owned by the same company), and yet: here it is.



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The US Economy In Pictures

With the economy now more than 5 years into an expansion, which is long by historical standards, the question for you to answer by looking at the charts below is: "Are we closer to an economic recession or a continued expansion?" How you answer that question should have a significant impact on your investment outlook as financial markets tend to lose roughly 30% on average during recessionary periods. However, with margin debt at record levels, earnings deteriorating and junk bond yields near all-time lows, this is hardly a normal market environment within which we are currently invested. Therefore, we present a series of charts which view the overall economy from the same perspective utilizing an annualized rate of change. For the Federal Reserve, these charts make the case that continued monetary interventions are not healing the economy, but rather just keeping it afloat by dragging forward future consumption.  The problem is that it leaves a void in the future that must be continually filled.



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Japan To Downgrade Economic Assessment In April, So More BOJ QE Right? (Spoiler Alert: No)

Moments ago the Nikkei strategically leaked a report that the Japanese cabinet office, quite expectedly, will downgrade its economic assessment in its April report. "Expected" because as we reported, discretionary spending following the  sales tax hike, has gotten crushed. Also not unexpected, the USDJPY took the news in stride and posted a modestly bounce in the face of today's relentless selling of the pair. Why? Because to algos and many asset managers desperate for more training wheels from central banks (now that everyone has forgotten how to trade based soely on fundamentals), this means more QE from the BOJ right - after all horrible news for everyone is great news for the 1%.

Not so fast.



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"Growth" Stocks Tumble To 7-Month Lows To "Value" As Bond Yields Collapse

It is perhaps worth reflecting on the smorgasbord of free advice given out by the talking-heads after last night's closing ramp proclaiming the dip to be bought and that everything was fixed once again. It was not. Stocks are making fresh cycle lows and the Nasdaq and Russell 2000 are both now below the 200-day moving-average and appraoching the 10% (correction) from their highs. 10Y is back under 2.6% and the 30Y yield is back at 10-month lows... which perhaps explains why "growth" stocks are back at 7-month lows versus "value" stocks...



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"Ukraine In Very Dangerous Situation", No Lethal Assistance Coming Says White House

First it was the Russians who repeated they are "deeply concerned by the deaths in the Ukraine," and now it is the turn of the White House, through its  speaker, Jay Carney, to chime in as well:

  • RUSSIA DIRECTLY, INDIRECTLY SUPPORTING PROVOCATIONS: CARNEY
  • UKRAINE HAS TO RESPOND TO PROVOCATIONS IN UKRAINE, CARNEY SAYS
  • UKRAINE IN VERY `DANGEROUS' SITUATION, CARNEY SAYS

And yet, despite all the priase, Ukraine is on its own.

  • U.S. NOT CONSIDERING LETHAL ASSISTANCE TO UKRAINE, CARNEY SAYS

In other words, as we said last week, if it is Ukraine's gambit, that its allies will come to its rescue upon a lethal escalation and provocation, "it will be sorely disappointed." It seems Ukraine is about to figure this our first hand.



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The Alienation of Work

Rather than rely on centralized states and corporations to organize labor and capital, collaborative networks can do so without alienating workers from their work and disrupting the sources of meaning. The emerging economy is opening up new ways to reconnect workers to their work and the profits from their work. These include traditional models such as self-employment and worker-owned cooperatives and new models of collaborative project-based work.



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Two Very Different Views On Soaring Food Inflation

Two rather amusing, and quite opposing views on surging food inflation (recall that as we first reported beef prices are at record high), which was confirmed by this week's PPI and CPI reports: one from Goldman, the other from IHS Global. We let readers decide which one is right... and which one will determine the Fed's "thinking" about soaring good inflation.



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European Stocks Tumble As Investors Rush Into "Safe Haven" Italian Bonds!?

Consumer confidence slumps in the core and Ukraine fears weighed heavily on European stocks despite getting a push from the insanity in US equity markets this morning. Europe closed at their lows of the day led by Italy and Portugal stocks fading fast. It would appear that these worried investors greatly rotated into safe-havens such as Italian government bonds - which broke to their lowest yield on record today... makes sense right?



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Russell 2000 Breaks Below Key Technical Level

For the first time since Novemeber 2012 (when QE4EVA was kicked off in style), the Russell 2000 - that long-heralded indication that everything is great in the US economy and the indicator that stocks are great at discounting the future that is undoubtedly rosy - has broken back below its 200-day moving-average. In the meantime, an oddly dominant algorithm is swamping options markets with millions of fake orders..."rigged?"



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Su-27 Fighter Jet Above Kramatorsk Caught On Tape

Obama really needs to explain the meaning of the word "costs" at least one more time.



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Unidentified Fighter Jets Open Fire On Kramatorsk Airfield, Casualties Reported

Things in east Ukraine have spiraled out of control. Moments ago Itar Tass reported that there has been a shoot out at the separatists-controlled airport in the city of Kramatorsk where according to on the ground witnesses,  four Su-27 fighter jets have allegedly opened fire at the local airfield. It is unclear who the unidentified warplanes belong to although Itar Tass notes that one of the jets was allegedly taken down, so there should be confirmation shortly. Eyewitnesses also add that there are victims and an ambulance has been sent to the scene. Itar-Tass also adds that according to the newspaper "News Kramatorsk" three helicopters were circling over Kramatorsk.



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And Now Market Tumbles, As News Of Ukraine Deaths Spook Algos

Despite the best efforts of the straight-line panic buying algos on a Tuesday, it seems flashing red headlines of dreadful escalations in Ukraine (more deaths), from Bloomberg:

11 REPORTED DEAD DURING UKRAINIAN OPERATION IN KRAMATORSK: RT
UKRAINE GOVT: RUSSIAN 45TH AIRBORNE IN SLOVYANSK, KRAMATORSK

...and USDJPY tagging 102 again (of course) were enough to spark the manic idiocy of markets from buy-buy-buy to sell-it-all-Mortimer... So much for yesterday's "see it's all good now" ripfest... The Russell 2000 is back at yesterday's lows and NASDAQ is back under 4000.

 



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Will Terrific Tuesday Hold Once Again?

For the 11th week this year, US stocks are higher on the most fundamentally bullish combination possible in today's markets... a Tuesday open... Absent the exuberance of Turnaround Tuesday (which appears to have been discounted into Manic Monday yesterday afternoon), the S&P would in correction territory (down over 10% in 2014). The question is... will today be any different?



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