Tyler Durden's picture

Futures Unchanged Hours Ahead Of Janet Yellen, As Chinese Liquidity Lifts All Global Boats

It has been a story of central banks, as overnight Asian stocks reversed nearly two weeks of consecutive declines - the longest stretch since 2001 - and closed higher as the same catalysts that drove US equities higher buoyed the global tide: a combination of Chinese liquidity injection (for the paltry amount of just under $90 billion; "paltry" considering Chinese banks create over $1 trillion in inside money/loans every quarter) and Hilsenrath leaking that despite all the "recovery" rhetoric, the Fed will not be turning hawkish and there will be no change in the Fed language today (perhaps not on the redline but Yellen's news conference at 2:30pm will certainly be interesting), pushed risk higher, if not benefiting US equities much which remains largely unchanged.



Tyler Durden's picture

Janet Yellen Trolls America's Poor: Tells Them It Is Important To Get Rich

The Fed Chairman has some words of encouragement for the tens of millions of Americans who live at or below the poverty level, including that threatened with extinction class, affectionately known as "the middle." Her message? Build assets, or said otherwise...  get rich.



Tyler Durden's picture

Can The Petrodollar Survive Low Interest Rates?

The Fed consistently managed the Fed Funds rates to keep oil prices steady, even when it required mid-teens interest rates and back-to-back recessions in 1980-1982. Since US Fed Funds rates were managed to preserve US creditors’ and oil exporters’ purchasing power in oil terms, the system proved acceptable to most nations. While the Petrodollar arrangement worked well for nearly thirty years, the arrangement began to wobble beginning around 2002-04...



Tyler Durden's picture

How Banks Continue FX Rigging Right Under The SEC's Noses

The good news is that the rigging of the FX markets - now conspiracy fact, not conspiracy theory - has, according to Bloomberg, forced the world’s biggest banks to overhaul how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation with the "modernization of processes that probably should have been brought in 15 or 20 years ago." However, the FX market is far from 'clean' as Bloomberg notes, while banks can limit access to details about client orders on their computer systems, they can’t keep employees from talking to one another. Some traders also are still communicating with clients and counterparts at other firms via Snapchat, circumventing their company’s controls right under the nose of the SEC. As one trader commented, "these [reform] changes look like fig leaves."



Tyler Durden's picture

This Seems To Be Going Well...

This is a trend that has outlasted three Presidents and six Congresses. It’s not about a single politician, or even ALL the politicians. It’s about the system itself.



Tyler Durden's picture

Washington's Bait-And-Switch: NATO Armed Kiev Under Cover Of Ceasefire

Just over ten days ago, as the pro-independence forces in east Ukraine were on the march with significant gains on the battlefield, a ceasefire was signed in Minsk, Belarus. It turns out to be a grotesque sleight of hand, with Kiev receiving guarantees at the September 5, NATO summit in Wales that NATO members would provide the military equipment to finish the pro-independence forces in the east after the ceasefire gave time to re-group a badly beaten, largely conscript Ukrainian army.



Tyler Durden's picture

What's The "Best" Way To Make A 10% Return?

Aside from the "sure thing" of buying the Alibaba IPO, achieving a 10% yield return in the new normal world requires leverage and excess risk-taking. To compare the risk/reward of various assets, Citi accounts for haircuts and leverage costs of the typical investor and finds an investors needs a 1.9x leverage in the S&P 500, 8.1x leverage in Treasuries, and 2.3x leverage in high-yield to achieve (based on historical norms) the required return. However, after accounting for downside risks, high-yield cash and leveraged loans both top the S&P 500 as the best way to meet a 10% bogey yield.



Tyler Durden's picture

Subprime Is Back With A Vengeance

This is where our economies are perverted. It’s the final excesses and steps of a broke society. It’s madness to the power of infinity. The only thing that’s certain is that in the end, your money will all be gone. That’s how Mario Draghi ‘saves’ the EU for a few more weeks, and that’s how the big boys of finance squeeze more from what little you have left (which is already much less than you think). A world headed for nowhere.



Tyler Durden's picture

4 C’s That Could Change The Financial World As We Know It, Again

Those 4 C’s are: Confirmation, Crisis, Contagion, Catastrophe.



Tyler Durden's picture

The U.S. National Debt Has Grown By More Than A Trillion Dollars In The Last 12 Months

The idea that the Obama administration has the budget deficit under control is a complete and total lie.  The U.S. national debt has actually grown by more than a trillion dollars in less than 12 months.  We continue to wildly run up debt as if there is no tomorrow, and by doing so we are destroying the future of this nation.



Tyler Durden's picture

Ukraine Currency Crashes To Record Low As IMF Blasts "Gross Abuses"

Despite celebrations of de-escalations and truce in US equity markets (by asset-gathering commission-takers), the situation continues to go from bad to worse in the nation almost forgotten now that ISIS is stealing American headlines. The Hryvnia plunged 7.5% this morning - its biggest single-day drop on record - following the release of a scathing IMF letter and devaluation warnings from BofA. The IMF blasted Ukraine's "premature emission of extra money," and demanded it "immediately halt these gross abuses," as BofA warns of risk of "10-20% devaluation" in the next year is high given reserves are at a "critical level."



Tyler Durden's picture

Economic Policy Treats Symptoms, Not Underlying Causes

The economy we have now is like a mental patient, drugged up with so many antidepressants, antipsychotics, and mood stabilizers that the root of his problems has become undetectable. It sounds Utopian, but economic growth really is a panacea that improves standards of living for everyone in nearly every way. But instead of pursuing economic growth, the government wastes its time with piecemeal patches, trying to plug a hole whose cause remains unabated.



Tyler Durden's picture

Scottish Referendum Preview: In 170 Years, Voters Chose "Independence" 88% Of The Time

Ahead of Thursday's critical Scottish Independence vote, we thought some context was worthwhile. As The Guardian notes, history shows that when people are asked, they almost always say yes to independence. Every election, country and place’s history is unique and different. Scotland is no exception. Yet, when given the opportunity, The Guardian finds countries tend to vote in favour of independence, and to do so decisively - across 50 votes since 1846, the vote for independence came out on top 88% of the time (and when the margin was small, voters always sided with independence.) But this time is different, right?



Tyler Durden's picture

U.S. Targets Islamic State's Lucrative Oil Smuggling Operations

Smuggled oil could be a pivotal issue for the U.S. as it seeks to destroy IS. The militant group sells oil at a reduced price – perhaps around $25 per barrel. At first, it sold the oil to middlemen, who moved the oil to Iran, Syria, Jordan and Turkey. But as IS’ operations grew, they forced out the middlemen, beat back other militant groups, and are now providing security to their own convoys of oil tanker trucks heading out of their territory to market. Air strikes may succeed in destroying vehicles and other military equipment under IS control, but cutting off the flow of money – specifically from oil smuggling – will likely go further in weakening the Islamic State.



Do NOT follow this link or you will be banned from the site!