ETC

An Unprecedented Jump In The VIX

While stocks have hit the skids a bit in the past few days, by comparison, volatility expectations have soared by an unprecedented amount.

Work Won't Be Scarce - It's Paid Work That Will Be Scarce

The great fantasy that many are depending on to solve the decline of paid work is taxing the robots and software that ate all the jobs. These taxes are supposed to pay for the Universal Basic Income that everyone will enjoy once work is automated and jobs become scarce. The problem with the fantasy is that profits only flow to what's scarce, and as the tools of automation are commoditized, they will no longer be scarce.

Theft Of Opportunity - The Impact Of Reg NMS On The Retail Investor

Regulation NMS made its first major impact with the introduction of “Payment For Order Flow”, which when paired with sub-penny pricing, is now directly responsible for birthing a new gold rush within the capital markets. The dawn of the High Frequency Trading (HFT) community we witness today. The result of this policy is an insurmountable, unequal, and unjust advantage for self-dealing BD’s and HFT’s, at the expense of the market’s retail level investors.

Why The Next Decade Will Foil Financial Plans

"This time is 'not different'. The only difference will be what triggers the next valuation reversion when it occurs. If the last two bear markets haven’t taught you this by now, I am not sure what will. Maybe the third time will be the 'charm'."

Why Nothing Progresses (Except Dissatisfaction): Institutionalized Powerlessness

To soften the enforcement of obedience, institutions offer various blandishments of recognition: employee of the month, etc. Hierarchical organizations that must compete for workers, such as technology firms, will actively court their employees with Friday parties and various bonding events to generate a sense of purpose and community. But stripped of public-relations cheerleading, these ploys are deeply inauthentic. They aren’t designed to create a real community, but to simply soften the enforcement of obedience with superficial recognition of the human need for recognition and belonging. Their real purpose is to mask the employees’ powerlessness.

Global Bonds Yields Plunge To Record As Treasuries Test Flash-Crash Lows

German, Japanese, and British bond yields are plumbing historic depths as low growth outlooks combined with event risk concerns (Brexit, elections, etc.) have sent investors scurrying for safe-havens (away from US Biotechs). At 2.0bps, 10Y Bunds are inching ever closer to the Maginot Line of NIRP which JGBs have already crossed, and all of this global compression is dragging US Treasury yields to their lowest levels since February's flash-crash... and it appears stocks are catching down to that reality.

EBT Card Outage? 8 Days Into June And Many Americans Are Still Waiting For Food Stamp Money

Widespread reports continue to pour in from all over the nation of “glitches” with the food stamp system.  It is eight days into the month and large numbers of people still have not received their benefits, and in other instances it is being reported that EBT cards are simply not working correctly. Could this simply be another example of government incompetence, or is something else at work here?

"This Could Be The Biggest Auto Scandal Since The GM Ignition Switch" - Why Tesla Is Probed Over A "Suspension Issue"

"where Tesla crosses the line here is not the “crime” itself, but the coverup. If Tesla used a TSB rather than a recall to fix a safety problem, if it has an institutional bias against ordering recalls and if it uses NDAs as a matter of course to prevent owners from reporting defects, this could become the biggest auto safety scandal since the GM ignition switch affair."

The Alternative Viewpoint: The 5 Scenarios Of Donald Trump

The rise of Trump has captivated all (contrast with the rise of Hillary which seemed a forgone conclusion from the word go, even when reality threatened to intervene). We're not alone however, in suspecting that The Donald, is not really the “anti-establishment” loose-canon candidate he is being made out to be. Trump could very well be playing a well defined role within the usual backdrop of manipulation of the masses and ensuring that any choice Americans face in November is purely illusory and ceremonial.

Goldman Turns Downright Gloomy, Warns Market "Despair" Is Coming, Prepare For A Major Drawdown

As Goldman warns in a note overnight, "Large equity drawdowns often mark the end of an equity cycle and tend to coincide with a recession or financial market/geopolitical shock or a combination, which tend to result in a sharp equity correction driven by a decline in both earnings and valuations." As it turns out, Goldman thinks precisely such a "drawdown" is coming...