Tyler Durden's picture

It's Official: Americans Spent All Their "Gas Savings" On Obamacare

We have solved the mystery of why US households did not spend all those billions in "dropping gas price" windfalls - the answer is that they did spend all this money. On Obamacare.



Tyler Durden's picture

China's Banks Cut Dividends Amid Rising Bad Loans, Expectations Of Falling NIM

“The new normal for the Chinese economy and banking sector includes sluggish growth and persistent credit deterioration,” one analyst tells Bloomberg. China's largest banks are seeing loans tied to manufacturing and other sectors sour which is cutting into profitability just as rate cuts squeeze NIM margins.



Tyler Durden's picture

What Deflation? The Price Of Ground Beef Has Doubled Since The Last Financial Crisis

Since the depths of the last recession, the price of ground beef in the United States has doubled. Has your paycheck doubled since then? Even though the Federal Reserve insists that we are in a “low inflation” environment, the government’s own numbers show that the price of ground beef has been on an unprecedented run over the past six years...



Tyler Durden's picture

Why There Is No Wage Growth In America

Over the past 2 years the Obama administration has been desperate to boost minimum wages, usually over tedious bickering with republicans and corporations who have resisted such an increase, with neither party realizing that such a measure would not do much to actually boost aggregate spending. Instead, what Obama should have been focusing on was to limit the maximum number of hours worked per week, because as the following chart shows, the reason why weekly pay is rising and aggregate earnings is not due to an increase in hourly wages but because Americans are simply working longer hours every week: not quality but quantity.



Tyler Durden's picture

Middle East Geopolitical Relationships Simplified

Ok.... Got it?



Tyler Durden's picture

What Deadly Summers, Sandy Koufax And Lucky Golfers Can Tell Us About Bonds

A five sigma event signifies extreme conditions, or an extremely rare occurrence. To bring this discussion from sports and weather to the financial world, we can relate a 5 sigma event to the stock market. Since 1975 the largest annual S&P 500 gain and loss were 34% and -38% respectively. A 5 sigma move would equate to an annual gain or loss of 91%. With a grasp of the rarity of a 5 sigma occurrence, let us now consider the yield spread, or difference, in bond yields between Germany and The United States. As shown in graph #1 below German ten year bunds yield 0.19% (19 one-hundredths of one percent) and the U.S. ten year note yields 1.92%, resulting in a 1.73% yield spread. This is the widest that spread has been in 30 years.



Tyler Durden's picture

Obama Administration Bullies Allies Over Iran Nuke Deal Dissent

President Obama is "blowing up our alliances to secure a deal that paves Iran’s way to a bomb," according to European sources close to the negotiations, and as Washington Free Beacon reports, efforts by the Obama administration to stem criticism of its diplomacy with Iran have included threats to nations involved in the talks, including U.S. allies. France has borne the brunt of Obama's wrath as one source in Europe close to the ongoing diplomacy said the US has begun to adopt a “harsh” stance toward its allies in Paris because "the clarifications expose just how weak the Americans’ deal is shaping up to be."



RANSquawk Video's picture

RANsquawk - Weekly Wrap - 27th March 2015



Tyler Durden's picture

5 Things To Ponder: Random Musings

"...The negative divergence of the markets from economic strength and momentum are simply warning signs and do not currently suggest becoming grossly underweight equity exposure. However, warning signs exist for a reason, and much like Wyle E. Coyote chasing the Roadrunner, not paying attention to the signs has tended to have rather severe consequences."



Tyler Durden's picture

Janet Yellen To Discuss "The New Normal For Monetary Policy"

In a few minutes, Janet Yellen will address a lunch session in her native SF Fed (the same place that last week finally figured out what debt is) during a conference whose topic is The New Normal for Monetary Policy (the typo from "Paranormal" is easy to make). The informal agenda will be Yellen's explanation of how she plans on achieving the yield curve which we predicted back in 2010 is just a matter of time.



Tyler Durden's picture

Saudi Arabia Then & Now (In 1 Cartoon)

"Unintended Consequences"?



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