With One Week Left Until The Fed's Rate Hike, Nobody Knows If The Fed Can Actually Do It

We are less than one week away from a historic monetary experiment in two parts: first, attempt the Sisyphean task of pushing up the rate of interest on over $2.5 trillion in excess liquidity, and second, to assure the market that it has correctly priced in the overnight evaporation of up to $800 billion (or more) in liquidity from asset prices. If one or both of these fail to deliver, than the embarrassing disappointment that marked the ECB's December announcement and its dramatic impact on asset prices and FX levels, will be a walk in the park compared to "disappointment" that the Fed will unleash once the market realizes that while in theory the Fed can and is ready to hike, it simply can't do so in practice.

Marissa Mayer's Value "Added": Yahoo Is Now Worth A Negative $13 Billion

at the beginning of the year Meyer's severance was worth $158 million. It has since declined to $60 million. During the same time the enterprise value of Yahoo's core operations, as valued by the market, has declined from negative $1 billion to negative $13 billion. Sounds like a fair trade.

Year End Tax Loss Selling - Energy Stock Edition

The Energy names in the S&P 500 haven't broken their August lows in the recent downdraft for the group. That’s surprising for two reasons: first, spot crude prices certainly have – $36.52 today versus a $39.65 low on August 24th; and second, December is typically the month where investors harvest tax losses by selling losing positions and the Energy sector has a bumper crop of such candidates.

Cheap Oil's First US Casualty: Alaska Forced To Tax Personal Income For First Time In 35 Years

With sadly ironic timing, we noted just last week that the blowback from "unequivocally good" low oil prices was set to cross the border from an increasingly suicidal Canada, and so, as AP reports, it appears Alaska is facing the toughest of times. As oil prices make new cycle lows, Alaska Gov. Bill Walker has called for the state's first income tax in 35 years in order to close a $3.5-billion-dollar deficit the state is carrying. Alaska is currently the only state that does not have a state sales tax or personal income tax, having relied on oil income but, as Walker tweeted, "now is the time for Alaskans to pull together."

The Fed's In A Bind: The Cluelessness Of The Macroeconomic Establishment

The next financial crisis could manifest itself in the coming months. If so, it will mark the end of current central bank monetary policies and state control of markets, as free markets reassert realistic pricing. Government bond yields will normalise, stock markets will fall, and banks will almost certainly fail. When something as epochal as this happens, we can expect the macroeconomic establishment to be clueless with respect to the problem itself and its scale.

US Kills ISIS "Finance Minister" In Airstrike

This afternoon we got another completely amorphous claim from The Pentagon regarding the death of a “senior” ISIS commander when Special Presidential Envoy for the Global Coalition to Counter ISIL (whatever that is) Brett McGurk took to Twiiter to announce the death of an Islamic State FinMin.

Gunmakers "Sold"

Flashing red headlines, business media anchors exuberant as gun-maker stocks weresold after CT Governor Malloy unveiled his executive order and following White House chatter that officials were finalizing proposal that would expand background checks on gun sales without congressional approval. We thought the following charts would provide a little context for this "selling"...

The New Crypto Wars – FBI Director James Comey Threatens Silicon Valley

The U.S. establishment has been aggressively pushing against the American public’s right to private communications, i.e. encryption, ever since the terror attacks in Paris. This push continues unabated, with the latest shots fired earlier this week by FBI chief James Comey at a Senate Judiciary Committee hearing. I don’t want to tell them how to do their business... but there are costs to being an American business."

What Democrats Really Think Of Hillary Clinton

"Clinton is also increasingly seen as the least honest in the field, with 46% of likely Democratic primary voters now saying she is least honest out of the three remaining candidates...That's up from 33% in September and 28% back in June." Yet, they will still nominate her.