Where Candidates Fear To Tread - Pervasive Racketeering Is Destroying America

In this moment of history there is an astounding lack of seriousness among people who pretend to be political heavyweights. No one so far has nailed a proper bill of grievances to the White House gate. A broad roster of dire issues facing this society ought to be self-evident. But since they are absent so far in the public discussion, here is our list of matters that serious candidates should dare to talk about (all things that a sitting president could take action on)...

S&P Dares To Go There: Downgrades European Union To Negative Outlook

Just a few short years after they dared to downgrade the US, S&P has unleashed their worst on Europe:

*EUROPEAN UNION OUTLOOK REVISED TO NEGATIVE FROM STABLE BY S&P

We are sure this will be met by S&P office raids throughout Europe, litigation over somethhing or other, and denials broadly from any and every unelected member of EU's elite... because "when it's serious you have to lie."

VIX ETF Surges Off Record Low Crushing Contango Cruisers

Following our discussion of perhaps the most successful (and/or most risky) trades of the last decade - that of shorting the front-month VIX - we were less than surprised that VXX -the VIX ETF has collapsed to new record-lows this morning. A snap higher in VIX has been met by an avalanche of vol selling and, as we discuss below, the accelerating contango as expirations loom has encouraged yet more to take on unlimited risk positions to pick up pennies in front of the steamroller. All the time "The Fed has your back," it appears traders believe the steamroller driver has his foot on the brake... As if on cue - VIX has spiked and VXX surged.

30Y Treasury Yield Plunges To 3-Month Lows As S&P Breaks Key Technical Support

The carnage is contagious. The S&P 500 just broke down below its 50- and 100-day moving averages unable to hold the ubiquitous pre-EU-close ramp highs. Treasury yields have plunged since the weak spending and ISM data with the 5Y breaking below its 200-day moving average and 30Y yields testing 3-month lows...

 

Rent Bubble = Housing Bubble = Rent Bubble

Both bubbles (rents and housing) are vulnerable to popping. The real test of valuation is: what's it worth in a recession, after all the easy money and the jobs that depended on easy money have vanished?

Here Is The Reason Why GM's July Car Sales Smashed Expectations

"Fleet deliveries in July were down 20 percent year over year, as the company continues to execute its plan to reduce sales to rental customers and grow commercial and government deliveries. Government sales were up 38 percent, with deliveries to state and local governments up 59 percent."

LIBOR Scapegoat Found Guilty, Sentenced To 14 Years

Update: JUDGE SENTENCES HAYES TO 14 YEARS IN JAIL FOR LIBOR CRIME 

Former UBS Group AG and Citigroup Inc. trader Tom Hayes, the first person to stand trial for manipulating Libor, was found guilty of eight counts of conspiracy to rig the benchmark rate.

Construction Spending Growth Slumps To 2015 Lows

A dramatic upward revision from 0.8% MoM to 1.8% MoM (after March's biggest jump since 1998), may be a small silver lining in the rear view mirror as construction spending growth tumbled to just 0.1% in May - the weakest since Nov 2014. It seems the climactic malinvestment boom in the last 3 months is faltering fast and is entirely unsustainable.

Obama Authorizes "Defensive" Airstrikes Against Assad Regime In Syria

"President Barack Obama has authorized using air power to defend a new U.S.-backed fighting force in Syria if it is attacked by Syrian government forces or other groups, raising the risk of the American military coming into direct conflict with the regime of President Bashar al-Assad," WSJ reports.

ISM Manufacturing Slumps To 3-Month Lows Led By Plunge In Employment

It appears ISM Manufacturing data has been 'leaked' early and is reportedly printing 52.7 in July, down from 53.5 prior and missing expectations. This is the weakest print since March as the Q2 bounce is now officially dead. Both imports (lowest since Jan 2013) and new export orders (lowest in 3 years) declined as employment tumbled. In fact every subcomponent fell aside from new orders, production, and supplier deliveries with order backlogs at their lowest since Nov 2012.