• Capitalist Exploits
    09/20/2014 - 11:12
    There is no perfect system or place on our blue planet, so spare me your pious lectures about poverty in the 3rd world until, say, you've fixed your own f***ing Detroit!
  • 09/20/2014 - 15:05
    The U.S. capital markets have once again been reflated into an asset air-ball, pressurized at new all time highs, under suspect synthetic monetary measures. These central banking degenerates are...

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238 Years Of The (Dis)United Kingdom

As the World anxiously awaits the results of today's Scottish Referendum for independence from The United Kingdom, we thought a little context on just how many 'nations' have left over the last 238 years...



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Lurking Beneath The Taper: More Trouble In Repo Land

Since we are now in the middle of the final month of a quarter, checking repo stats shows what we have come to expect of a fragile liquidity system. Once again, repo fails spiked sharply. The problem for “markets” is that repo is a primary liquidity conduit indicating significant and persistent degradation under, again, very benign conditions. There is no doubt that QE is the primary culprit here and that its removal is not “allowing” a healing process to begin but instead revealing the damage. With the Fed’s reverse repo program having no impact whatsoever, it just adds to the weight of evidence that policymakers don’t really know what they are doing and are just making it up as they go.



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Household Net Worth Hits Record $81.5 Trillion In Q2 Driven By Stock Market Surge

When earlier today, the Fed released its latest Z.1 (Flow of Funds report) for the second quarter, there were few surprises: thanks to the relentless liquidity injections by global central banks (charter here) resulting in record stock market levels, total household net worth rose once more, increasing by $1.4 billion in the quarter (up from a downward revised $1.2 billion in the previous quarter) to a record $81.5 billion. This was the result of a $95.4 trillion in total assets, offset by $13.9 trillion in liabilities, mostly mortgage debt of $9.4 trillion, as well as some $3.2 trillion in consumer credit.



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El-Erian: Investors Are Overlooking 6 Major Sources Of Global Uncertainty

This has been an unusual year for the global economy, characterized by a series of unanticipated economic, geopolitical, and market shifts – and the final quarter is likely to be no different. How these shifts ultimately play out will have a major impact on the effectiveness of government policies – and much more. In the next few months, the buoyant optimism pervading financial markets may prove to be justified. Unfortunately, it is more likely that investors’ outlook is excessively rosy.



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What's Wrong With This Chart?

Presented with little comment...



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IMF Admits QE Encourages Excessive Risk-Taking; Warns "Sharp Downside Risks Are Rising"

With the Fed unleashing its bubble-watchers last week, on the heels of warnings from the Central Bankers' Central Bank (BIS), The IMF has decided it is time to chirp in. As Mises' David Howden notes, after promoting QE for years (see here and here), the IMF is finally coming to realize what has been apparent for years now to almost everyone who doesn’t work for the Fed or the IMF: that low interest rates encourage risky decisions.The IMF warns, "financial market indicators suggested investor bets funded with borrowed money looked 'excessive' and that markets could quickly deflate if there were surprises in U.S. monetary policy or the conflicts in Ukraine and the Middle East."



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The Chart Alibaba's Underwriters Would Prefer You Didn't See

While the excitement is palpable on business TV, tomorrow's unleashing of Alibaba on US publicly traded markets could be less than exuberant. Judging by the performance of the last five largest US IPOs, Bloomberg notes that on average they fell 17% in the first year. Still we are sure, those who buy at the open tomorrow will be smart enough to know when to get out (hint: right before everyone else).



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More Than Just Gas: Is This Natural Resource The Reason For The Ukraine Civil War?

While the most important commodity for Europe is gas, whose supply Russia largely controls on the margin, for Ukraine the one commodity, located deep within the perimeter of the raging civil war, and which it desperately needs to regain access to to stop its economic collapse, is the following.



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A "True Normal" Is Still A Distant Dream

Reflecting on the farce that was the FOMC statement and press conference yesterday, Bloomberg's Richard Breslow jabs that it appears Janet Yellen's 'splaining can be summed up, "we can’t know what considerable time means because we’re told it’s a very nuanced concept." In other words, we are just not smart enough, leave it to the PhDs in the room. Even Goldman was struggling to find the dovish side reflecting that market movements were more driven by positioning than anything new policy-wise. As Breslow sums up so eloquently, "a 'true normal' balance sheet remains a very distant dream, perhaps end of decade, and who knows if they’ll ever get back there."



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Poroshenko Tells US Congress "Russia Has Invaded Ukraine, Need Lethal Aid" - Live Feed

In a passionate speech to a joint meeting of Congress, Ukraine's President Petro Poroshenko dropped some tape-bombs:

  • *POROSHENKO SAYS RUSSIA `HAS NOW INVADED UKRAINE'
  • *POROSHENKO SAYS UKRAINE `URGENTLY' NEEDS LETHAL AID
  • *POROSHENKO WARNS RUSSIANS WILL NEXT CROSS EUROPEAN BORDER

Supported by rounds of applause by US politicians, Poroshenko called for the US solidarity and to lead the offensive against Russia as they "fan the flames of war." Stocks dipped (but recovered) though PMs are higher still.



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ISIS Posts Video Of British Hostage To "Dispel Manipulated Truths" Of The Western Media

In an unusual turn of events, ISIS has released a 'news' video - absent gruesome beheadings and threats - that features ISIS captive UK report John Cantlie explaining, calmly, how "there are two sides to the story," in Iraq and Syria and attempting to "dispel the manipulated truths" of the Western media... "think you're getting the whole picture.. as history repeats itself yet again."



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Scotland Votes As Andy Murray Provides Last Minute Boost For "Yes" Camp; Wall Street Roundup

The long awaited moment finally arrived after Scots began voting at 7am BST on whether to break away from the U.K. and end the 307-year union, even as latest opinion polls show the campaign against independence maintaining a narrow lead over those favoring independence.  And while the No's are said to have a slim lead into the vote, even if it is really the Undecideds whose vote will determine the final outcome, somewhat surprisingly, the Yes camp got an unexpected boost just hours before the polls opened when 27 year old tennis star, and Scot, Andy Murray declared his support for Scottish independence in an 11th hour intervention on Thursday morning, after years of keeping silent on the issue.



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Phillly Fed Misses By Most In 7 Months, Employment Surges

Once again, there's a little something for everyone in yet another soft survey macro data point. The headline Philly Fed print missed expectations by the most since February and fell from 28 to 22.5 in September. So that's the bad news... The great news is that the employment sub-index surged to iuts highest since May 2011. That great news comes despite a plunge in the average workweek and collapse in hope as the outlook index fell to 3-month lows.



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South African Rand Tumbles To 7-Month Lows As Central Bank Governor Steps Down

In a surprise for the market, South Africa's Reserve Bank chief Gill Marcus has announced she will not be available for another term when her contract is up in November. On the heels of an expected decision to leave rates unchanged, this has sent the Rand tumbling to its lowest since February. While Marcus exporessed every confidence in her successor, it appears the market is less confident (for now). Forget the economy, sell ZAR because the true leader of the nation's wealth is to step down...



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Which Global Hegemon Is On Shifting Sands?

Given that all the leading candidates for Global Hegemon are hastening down paths of self-destruction, perhaps there will be no global hegemon dominating the 21st century.



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