How To Alleviate The Alleged "Worker Shortage" - Stop Subsidizing Non-Work

The great conundrum of the U.S. economy today is that we have record numbers of working age people out of the labor ‎force at the same time we have businesses desperately trying to find workers. So why aren’t workers filling these available jobs - or getting the skills necessary to fill them. We would posit five impediments to putting more Americans back to work - First, government discourages work...

Bonds Are Right! DoubleLine's Gundlach Warns Fed "Has Been Wrong For So Long... Offers No Value"

History is on the market’s side, says DoubleLine's Jeff Gundlach, noting the Fed’s forecast for how much benchmark rates will rise is still too high, even after central bankers lowered their estimates last month. BlackRock’s Jeffrey Rosenberg says the bond market’s too complacent and is poised for a correction, claiming The Fed has "a tremendous ability" to send bond yields higher. But as Bloomberg reports, "if the burden of proof is on anybody, it’s on the Fed," and for now, as Gundlach exclaims, The Fed has "been wrong for so long," that their forecasts have been literally of no value, "the market’s pricing has been closer."

Valuing (Greek) Banks: A Sum-Of-The-Parts Approach

Traditional banks were built to gather deposits. Their design and infrastructure is geared towards that; they are maladapted to today’s interest rate environment. P2P platforms and other non-bank lenders are eating their lunch. Absent some radical rethinking of their operations model, they are about to go the way of the dodo. Of course, markets are not efficient; it will take time for competitors to move in. Traditional banks, however, have few weapons to fend them off: their brands (much less valuable for loan-origination than for deposit-gather purposes) and their (hugely expensive) legacy infrastructure. It took almost a century for the dodo bird to become extinct.

Greece Calculates Germany Owes It A Third Of Its Q4 GDP In WWII Reparations

With almost 70% of Europeans already believing that Greece is a drag on the EU economy, this morning's statement by Greek Alternate Finance Minister Dimitris Mardas - coming just a week after the war-raparations committee was set-up, telling lawmakers in Parliament that he has calculated that Germany owes Greece EUR 278.7 billion in World War II reparations, will surely deepen the rift (at almost 40% of Germany's EUR 735 billion Q4 GDP) whether right or wrong.

Deadly East Village Explosion Allegedly Due To Owner Sabotage

In a world seemingly bereft of consequences for all but the lower classes, the removal of an "illegally rigged gas supply" before a ConEd visit, appears to have been the cause of the deadly explosion in New York's East Village last week. A plumber who worked at the building has allegedly, according to NY Post, admitted to illegally tapping into a gas line there - saying that the landlord’s son ordered him to do it (who, perhaps karmically, was hurt in the blast).

Spin-O-Nomics In A World Of Unraveling Globalism

The USA set the tone for 21st century magical finance, in which “wealth” was “created” by digital accounting fraud. The effects at home are visible on our landscape of suburban hyperwaste and decrepitating older towns and cities.

SkyNet Is Almost Sentient: HFTs To Start Trading Bitcoin

As noted earlier, with equities now a barren wasteland of volume (and liquidity), the last remaining HFT master (of whale order frontrunning) has been forced to go to those asset classes where organic flow is still abundant such as FX, courtesy of central banks engaged in global currency wars. However, HFTs realize it is only a matter of time before FX order flow also dries up as central banks take their trade away from public venues (and dark pools) and as such are always looking for new, untapped markets. One place where they are about to land according to the WSJ, with hilarious consequences sure to follow, will be the one place that HFTs should have felt at home from the very beginning: bitcoin.

Warren Buffett, Slumlord – Predatory Loans, Kickbacks & Preying On The Poor

In so many ways, Warren Buffett and modern America are the same thing. An idea packaged and marketed so brilliantly, most of humanity unquestionably believes the myth.  However, when you look beneath the surface, it becomes increasingly clear that neither of them actually come close to what’s printed on the package.

March Consumer Spending Hits Three-Year Low For Average Americans

With more than three quarters of US workers trapped in what we will call “wage growth hell,” and whose only chance at seeing a pay hike appears to rest on holding out for a promotion that’s probably not forthcoming, it doesn’t exactly come as a surprise that self-reported consumer spending hit a three-year low for March.

iWTF

Because with the suddenly collapsing labor market, in which only Americans 55 and over can find jobs, expensive and superfluous Apple Watches should be a game-changer.

US Services Confusion: Good (PMI 7 Mo Highs), Bad (ISM 9 Mo Lows), & Ugly (Business Activity 12 Mo Lows)

Amid collapsing macro data and earnings expectations, Markit's US Services PMI smashed expectations and surged to 59.2 (its highest in 7 months) - just like Markit's Manufacturing PMI 'surprised'. Against the worst payrolls data in over 2 years, Markit's employment index rose by most since June. Furthermore, the business outlook tumbled to 8-month lows. And then following ISM Manufacturing's miss and tumble to near 2-year lows, ISM Services met expectations at its lowest since June... as Business Activity tumbled to one-year lows.

Virtu's Second Attempt At Going Public Reveals Why FX Trading Is Now Impossible

The question on everyone's lips: which asset class was responsible for Virtu's trading perfection for yet another year.  It wasn't stocks because adding across the firm's America, EMEA and APAX equity product lines, Virtu revenues actually declined, from $201 million in 2013 to $195 million in 2014. It also wasn't commodities, where revenue dropped by almost $2 million in 2014 to $93.1 million.The answer is...