Bond

"Hell To Pay" - The Final Condition For A Market Crash Is Falling Into Place

Our liquidity-drunk “markets” remain over-priced due to the chronic intervention of the global central banking cartel, which has demonstrated over and over again that it won't tolerate even the slightest drop in asset prices. Once faith in central banks is lost, their power to delay the deflationary day of reckoning goes with it. The stupendous amount of debt they have helped heap onto the financial system since 2008 will start going into default and the only question that will matter is: Who is going to eat the losses?

Chicago's Plight: Why Do Blacks Perpetually Vote For Politicians Who Make Their Lives Worse?

Chicago suffered through its worst summer of violence in decades. In August, over 400 people were shot and 80 killed. Activists and public unions blame income inequality. Income inequality is rising, but very few understand who is to blame. And the tax hikes and pay hikes that unions seek exacerbate the problems and cause white flight. Many claim education is the answer, but the Chicago public school system is not only financially bankrupt, it is morally bankrupt.

How Much Longer Will Investors Trust The Central Banks?

It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.

Frontrunning: September 23

  • Futures slip after three-day rally as oil dips (Reuters)
  • Charlotte protests diminish early on Friday as family views video (Reuters)
  • Undecided Voters Are Proving a Tough Sell for Clinton and Trump (BBG)
  • Facebook Overestimated Key Video Metric For Two Years (WSJ)
  • Trump received $1.6 million from Secret Service (Politico)

Global Central Bank-Driven Stock Rally Fizzles; Crude Rebounds On Saudi Oil Production Cut Report

Until minutes ago, this week's rebound in global equities appeared to be running out of steam as oil retreated from a two-week high and a dollar slide ended.  However, as noted just around 6am, Reuters reported, citing as it usually does various "anonymous sources", that in a radical departure from its long-held policy of not cutting production, Saudi Arabia was prepared to cut production on condition that Iran freezes output, which led to an instant spike in crude.

Senators Call For Labor Dept Probe Into Wells Fargo As Warren Buffett Vows To Keep Silent Until After Election

That did not take long. Just hours after a CNN report suggested that Wells Fargo was retaliating, and firing, company whistleblowers who had spoken out against the company's illegal "account creation" practices (while blaming them of being "tardy"), moments ago Reuters reported that Senators have asked the Labor Department to investigate Wells Fargo for potential violations of Fair Labor Standards

Just Plain Pathetic

We are speaking, of course, of the Fed’s decision to punt yet again, and for a reason that is not mysterious at all. To wit, our financial rulers are petrified of a stock market hissy fit, and will go to any length of dissimulation and double-talk to avoid triggering a crash of the very bubbles their policies have inflated.

Why Futures Are Surging Again: RBC Explains

And just like that: risk-parity / various other leveraged ‘target risk’ strategies (S&P Target Risk Aggressive Index saw its best day since first week in July yesterday) are back in the driver’s seat, as the Fed and BoJ went back to their “happy place” of a vol-suppression kind of world.  That is exactly who / what we are seeing in equities futures, UST futures / curves right now.  Lever it up again!