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Gold In 2016: "Economic Power Is Shifting"
Submitted by Tyler Durden on 01/09/2016 18:15 -0500An unseen bubble at the heart of the financial system is deflating with unknown consequences. When bubbles deflate, and here we are talking about one in the hundreds of trillions, bad debts are usually exposed. Even though much of the reduction in outstanding OTC derivatives is due to consolidation of positions following the Frank Dodd Act, much of it is not. When free markets reassert themselves, and they always do, the disruption promises to be substantial. We appear to be in the early stages of this event. If so, demand for physical gold can be expected to escalate rapidly as a financial crisis unfolds.
Weekend Reading: Breaking Markets
Submitted by Tyler Durden on 01/08/2016 16:30 -0500"Some people are never too old to find new ways to lose money."
US Stocks Give Up "China Is Fixed" Gains
Submitted by Tyler Durden on 01/08/2016 11:14 -0500Small Caps have been red most of the day but the major US equity indices clung valiantly to hopeful "China is fixed... and what about Jobs" gains (despite the recessionary print in wholesale data). But that is all over now... The S&P 500 and Dow have now broken down and turned red for the day...
US Futures Lose Overnight Gains; Dax Back Under 10,000 As Chinese Market Bailout Fizzles
Submitted by Tyler Durden on 01/08/2016 06:56 -0500- Aussie
- Bond
- China
- Circuit Breakers
- Consumer Credit
- Copper
- CPI
- Crude
- Crude Oil
- Equity Markets
- Fail
- fixed
- France
- Germany
- Initial Jobless Claims
- Iran
- Japan
- Jim Reid
- KIM
- Mexico
- NASDAQ
- Natural Gas
- Nikkei
- North Korea
- Price Action
- Primary Market
- recovery
- Saudi Arabia
- Shenzhen
- Time Warner
- Trade Deficit
- Unemployment
- Volatility
- Wholesale Inventories
- Yuan
The half-life of the latest "market supporting" intervention by the Chinese government: just about 12 hours.
2016: Oil Limits & The End Of The Debt Supercycle
Submitted by Tyler Durden on 01/07/2016 21:30 -0500The problem of reaching limits in a finite world manifests itself in an unexpected way: slowing wage growth for non-elite workers. Lower wages mean that these workers become less able to afford the output of the system. These problems first lead to commodity oversupply and very low commodity prices. Eventually these problems lead to falling asset prices and widespread debt defaults. These problems are the opposite of what many expect, namely oil shortages and high prices. This strange situation exists because the economy is a networked system. Feedback loops in a networked system don’t necessarily work in the way people expect.
Russell Napier Explains How The Decline Of The Yuan Destroys Belief In Central Banking
Submitted by Tyler Durden on 01/07/2016 20:28 -0500If you had not noticed, 2016 has begun with gold and the USD rising simultaneously. This is different and important. This is very positive for gold and very bad for the world...
Bob Janjuah Warns The Bubble Implosion Can't Be "Fixed" This Time
Submitted by Tyler Durden on 01/07/2016 16:25 -0500Having correctly foreseen in September that "China's devaluations are not over yet" it appears Nomura's infamous 'bear' Bob Janjuah has also nailed The Fed's subsequent actions (hiking rates into a fundamentally weakening economy in a desperate bid to "convince markets that strong growth and inflation are on their way back"). In light of this, his latest note today should be worrisome to many as he warns the S&P 500 will trade down around 20% to 25% from current levels in H1, down to the 1500s and for dip-buyers, it's over: "I now feel even more certain that debt-driven asset bubble implosions cannot merely be 'fixed' with even more debt and another round of central bank-driven asset bubbles."
Why Bank Of America Just Said To Go Long "Cash & Volatility", In Charts
Submitted by Tyler Durden on 01/07/2016 10:49 -0500Bill Gross Warns Of Demographic Doomsday
Submitted by Tyler Durden on 01/07/2016 10:08 -0500"Demographics may not rule absolutely, but they likely will dominate investment markets and returns for the next few decades until the Boomer phenomena fades away. The 1% – in addition to the 99 – will need extra doses of Xanax, or additional slices of cake, to cope."
Global Stocks Crash After Spiraling Chinese Devaluation Unleashes Worldwide Chaos And Selling
Submitted by Tyler Durden on 01/07/2016 07:34 -0500- Apple
- Australia
- B+
- Bank of America
- Bank of America
- Bitcoin
- Bond
- Brazil
- China
- Circuit Breakers
- Consumer Confidence
- Continuing Claims
- Copper
- CPI
- Crude
- Crude Oil
- Equity Markets
- fixed
- France
- George Soros
- Germany
- headlines
- High Yield
- Hong Kong
- Initial Jobless Claims
- Italy
- Japan
- KIM
- Kyle Bass
- Kyle Bass
- Market Conditions
- Middle East
- Monetary Policy
- Natural Gas
- Netherlands
- Nikkei
- None
- North Korea
- Oklahoma
- OPEC
- RANSquawk
- San Francisco Fed
- Saudi Arabia
- Shenzhen
- Standard Chartered
- Trade Balance
- Trade Deficit
- Unemployment
- Volatility
- Wells Fargo
- World Bank
- Yen
- Yuan
Once China set the Yuan fixing some 0.5% lower, the biggest drop since the August devaluation, all hell broke loose and unleashed a global selling panic after China's stock market was promptly shut down less than 30 minutes into trading, then European shares dropped the most in more than 4 months as Asian equities plunges, as did US stock futures, the dollar weakened against the euro and the yen; crude plunged to fresh 12 year lows. Gold rose.
That`s the Bottom in the Oil Market
Submitted by EconMatters on 01/06/2016 17:21 -0500Sure Oil can go a dollar below this low, but for all intents and purposes this is the bottom in the oil selloff that was predicted for the start of the year.
Stocks Resume Rout After Massive Chinese Intervention Fails To Lift Shanghai, Calm Traders
Submitted by Tyler Durden on 01/05/2016 06:52 -0500- Auto Sales
- Barclays
- Bond
- Borrowing Costs
- China
- Cleveland Fed
- Consumer Prices
- Copper
- CPI
- Crude
- Crude Oil
- Economic Calendar
- Equity Markets
- European Central Bank
- Federal Reserve
- fixed
- France
- Germany
- Global Economy
- headlines
- High Yield
- Iran
- Italy
- Jim Reid
- Middle East
- Nikkei
- Non-manufacturing ISM
- Prudential
- RANSquawk
- Real estate
- Recession
- Reuters
- Saudi Arabia
- Shenzhen
- Unemployment
- Volatility
- Yen
- Yuan
After yesterday's historic -6.9% rout in the Shanghai Composite, which saw the first new marketwide circuit breaker trading halt applied to Chinese stocks (on its first day of operation), many were wondering if the Chinese government would intervene in both the once again imploding stock market, as well as China's plunging and rapidly devaluing currency. And, after the SHCOMP opened down -3%, the government did not disappoint and promptly intervened in both the Yuan as well as the stock market, however with very mixed results which global stocks took a sign that the "national team" is no longer focused solely on stocks, and have resumed selling for a second consecutive day.
The Fed's New Mandate
Submitted by Tyler Durden on 01/04/2016 16:30 -0500Because our macroeconomic policies have false targets and actually incentivize short term strategies the Fed has directly led us off of an economic cliff. Now that the Fed has boxed itself out of any further action, the market is at the peril of a collapsing, breadwinner-job-less and debt ridden economy and so prepare yourself for the largest market ‘correction’ the world has ever faced.
JPMorgan Crushes The BTFDers: "Sell Any Rallies"
Submitted by Tyler Durden on 01/04/2016 07:56 -0500It didn't take long for the momentum-chasing fundamental strategists to readjust their immediate stock price targets on the heels of the i) failure of the Santa Rally and ii) the worst start to the year in Chinese stock market history. Case in point, moments ago JPM's equity strategy team released its first note for the year in which it says that "we take the view that equities are unlikely to perform well on a 12-24 month horizon" adding that "the regime of buying the dips might be over and selling any rallies might be the new one."
Happy New Year: Global Stocks Crash After China Is Halted Limit Down In Worst Start To Year In History
Submitted by Tyler Durden on 01/04/2016 06:46 -0500- Australia
- Bond
- Carry Trade
- Chicago PMI
- China
- Circuit Breakers
- Copper
- Crude
- Crude Oil
- Equity Markets
- Eurozone
- Federal Reserve
- Ferrari
- fixed
- Flight to Safety
- Germany
- headlines
- High Yield
- India
- Initial Jobless Claims
- Iran
- Jim Reid
- KIM
- Markit
- Meltdown
- Middle East
- NASDAQ
- Nikkei
- RANSquawk
- Saudi Arabia
- Shenzhen
- Swiss Franc
- Yen
- Yuan
It all started off relatively well: oil and US equity futures were buoyant on hopes Iran and Saudi Arabia would break out in a bloody conflict any minute boosting the net worth of shareholders of the military industrial complex, and then, out of nowhere, like a depressed China in a bull shop, the "mainland" crashed the party and it all well south very, very quickly...




