The ECB Is Considering A Parallel Greek Currency

Today, to our dismay, we find that the ECB has not only considered a "parallel currency" alterantive but for Greece this may be a reality before long. According to Reuters, the ECB "has analyzed a scenario in which Greece runs out of money and starts paying civil servants with IOUs, creating a virtual second currency within the euro bloc, people with knowledge of the exercise told Reuters." "The fact is we are not seeing any progress... So we have to look at these scenarios."

 

When The ECB Starts Buying Corporate Bonds And Stocks Here's Where It Should Look

When the ECB is finally forced, by distortions of its own making, to dive into the corporate bond market, and when, after that, Mario Draghi goes full-Kuroda and throws the ECB’s balance sheet behind European equities, the central bank may want to check in the following places for relative value because according to Bloomberg, these are the countries where the “bargains” are to be found in equities and fixed income...

Stocks Re-Tumble After DOJ Said To Block Comcast-Time Warner Deal

Time Warner is down 5-8% on the news that the DoJ is "leaning against" the Comcast deal:

*DOJ LAWYERS SAID CLOSE TO RECOMMENDING SUIT TO BLOCK CABLE DEAL
*U.S. SAID GATHERING EVIDENCE TO SUPPORT BLOCKING TWC PURCHASE

This has dragged the broad market lower as Comcast hit back stating "there is no basis for a lawsuit to block the TWC merger."

Hillary Clinton Is Grooming A Former Goldman Banker To Become America's Next Treasury Secretary

Should Gary Gensler truly be Clinton's chief financial officer, and should Hillary become America's next president, then ladies and gentlemen, in the fine tradition started by Hank Paulson who nearly brought the entire wastern world to ruin, the next US Treasury Secretary will be the following fine former Goldman Sachs employee and "champion for everyday Americans."

Meet The Latest Country With Negative Rates

Let’s talk about idiots. Somewhere out there, some absurdly well-paid banker just placed his investors’ capital in yet another financial instrument which is guaranteed to lose money: Australian government debt. For the first time in Australia, every single one of the 47 bidders offered a price so high that it implies a negative interest rate. Sadly, there are plenty of similarities between today’s negative interest rates and the early 2000s housing bubble. Only a fool believes that this time is different.

US Rig Count Drops For Record 19th Week In A Row

Rig counts fell for a record 19th week in a row. Total rigs dropped 34 to 954 and oil rigs dropped 26 to 374. This means the total rig count drop is now greater than 50% - the fastest drop since 1986. Crude prices had slid into the rig count announcement and popped afterwards.

Which Companies Paid The Most Income Tax In 2014

Apple's market capitalization of $730 billion may now be more than double that of Exxon Mobil, but when it comes to taxes paid to the US government, it's no contest: the company with record profitability that so many progressive hipsters adore and for whose products they line up with annual regularity is billions of dollars below its "fair" contribution to the US Treasury. Ironically, it is eclipsed by that other company that so many progressives love to hate: Exxon Mobil, which paid $4 billion more in tax than Apple, yet whose valuation has been cut by 15% over the past year as a result of the collapse in oil prices.

European Sovereigns Have Worst Week In 5 Years, Stocks Slump

As Grexit contagion spreads so European peripheral bond risk has surged. Portuguese, Italian, and Spanish risk has increased by the most since May 2010. It appears that the hope of "containment" in Europe via Q€ purchases is overwhelmed by the outflows - this was extremely evident in German markets today that saw 'someone' selling both bonds & stocks as Grexit fears rose. European stocks were all battered - the worst week of the year - with Germany worst as European VIX soared 5 to 25.05 - its biggest jump in 4 months.

Bloomberg Service Now Fully Restored

"Service has been fully restored. We experienced a combination of hardware and software failures in the network, which caused an excessive volume of network traffic. This led to customer disconnections as a result of the machines being overwhelmed. We discovered the root cause quickly, isolated the faulty hardware, and restarted the software. We are reviewing our multiple redundant systems, which failed to prevent this disruption."

Is May 9 The Grexit Date?

Greek FinMin Varoufakis is meeting sovereign debt lawyer Lee Buchheit today, the ‘fairy godmother to finance ministers in distress’... The big questions concern not just the difference between on the one hand, economic issues and on the other, political ones. Syriza doesn’t have the mandate to take Greece out of the eurozone. That is a huge point. But neither does it have the mandate to give in to the troika’s insistence on pensions cuts. At a certain moment, it may come down to what can be explained to the Greek people, and how well it can be explained. This explanation will almost certainly have to come after the fact, since holding a referendum pre-Grexit would carry far too much potential risk of uncontrolled demolition of the entire Greek economy and banking system.

 

BofA "Explains" Why Optimistic Economist Forecasts Have Been So Wrong In The Past 5 Years

  • 2010: The first full year of the recovery was a growth recession with a collapse in inventories (after the restocking was complete), and continued private sector deleveraging.
  • 2011: There were a series of events, including the Japanese tsunami, spike in oil prices and US debt downgrade by S&P.
  • 2012: The crisis in the Eurozone intensified with concerns over a Greek exit and a breakup of the Eurozone. The policy response abroad was lackluster and there were concerns of another financial crisis.
  • 2013: The combination of the sequester, debt ceiling fight and government shutdown created an environment of heightened uncertainty and fiscal restraint.
  • 2014: The polar vortex delayed economic activity and led to a permanent loss of growth.
  • 2015: Rapid appreciation of the dollar and heightened uncertainty about the winners and losers from plunging oil prices has hurt growth. A small part of the weakness may be related to the weather and the dock strike.

DAX Plunges Most In 4 Months, Bund 5 bps Away From Negative

DAX is plunging this morning, hitting news lows for the day, as the last 2 days have been the biggest drop in the Q€-juiced index since mid-December. At the same time, 10Y Bunds are seeing yields collapse to as low as 4.9bps...