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"We Are Becoming Convinced That The System Won't Stabilize" - Citi Explains How Central Banks Broke The Market

"Central bank distortions have exacerbated these movements, making investor interest more one-sided and leading one market after another to exhibit more bubble-like tendencies, rising exponentially and then falling back abruptly. As such, managers are struggling to justify their fees, while the sellside wonders whether it is really worth the continuing commitment to market-making in the face of increased capital requirements and legal and back-office overheads."

China Furious After US Launches Trade War "Nuke" With 522% Duty

China is livid: as a result of record Chinese steel dumping, the US unleashed what is nothing short of a nuclear bomb in its rapidly escalating trade war with China, by imposing duties of 522% on cold-rolled steel used in automobiles and other manufacturing. In doing so it has effectively rendered Chinese exports to the US unsustainable and will force even more excess Chinese production to remain landlocked within China's borders, making the domestic glut that much worse.

Meanwhile In The U.S. Congress: "Chaos And Shouting" After LGBT Measure Fails To Pass

The US economy must be truly fixed and all geopolitical conflicts resolved, because as the world enjoys its global utopia on a day when yet another airplane was taken down by terrorists according to the latest news, the US House of Representatives is busy dealing with stuff such as this: according to the Hill, "the house floor devolved into chaos and shouting on Thursday as a measure to ensure protections for members of the LGBT community narrowly failed to pass after Republican leaders urged their members to change their votes."

'There Will Be Banker Blood': Why JPM Is Afraid Of "Quiet Trading Floors"

With banker bonuses set to drop this year, it should be no surprise that things are not all sunshine and roses on Wall Street. After 30 years of dramatically outperforming Main Street, Wall Street wages may be set for some mean-reversion as JPMorgan analysts take an ax to the biggest global investment banks' earnings. As Bloomberg reports, "quiet trading floors" are set to depress global investment banks’ second-quarter revenue 24 percent, with weakness across equities, interest rates, currencies, with a regionally-driven weakness from Asia.

Global Stocks Slide, S&P Set To Open Red For The Year As Hawkish Fed Ignites "Risk Off"

After yesterday's algo-driven mad dash to close the S&P green both for the day and for the year following Fed minutes that came in shocking hawkish, the selling has continued overnight, led by the commodity complex as rate hike fears have pushed oil back down some 2% from yesterday's 7 month highs, which in turn has dragged global stocks lower to a six-week low, while pushing bond yields higher across developed nations as the market suddenly reprices the probability of a June/July rate hike.

Wall Street Bonuses Predicted To Fall 20% In 2016

Wall Street bonuses are predicted to fall across the board, according to estimates from compensation consultant Johnson Associates Inc. who warns that fixed income trading and investment bank underwriting will be hardest hit, estimating that bonuses for those roles will fall as much as 15 percent to 20 percent from last year.

Are Property Taxes A "Wealth Tax" On The (Mostly) Non-Wealthy?

As pensions dry up and blow away under the relentless erosion of the Federal Reserve's zero-interest rate policy (ZIRP), unaffordable property taxes may well start evicting homeowners from the "asset" they mistakenly thought they "owned." If your Social Security pension can barely pay your property tax, never mind your Medicare, healthcare costs, food and other living expenses, then what exactly do you own? If politicos and tax authorities think people will passively watch their neighbors lose their homes to sky-high property taxes, they will soon discover their mistake.

The Chart That Will Make Every American Driver Angry

When crude oil prices started to collapse, the great American unwashed were told - day after day - that low oil prices were "unequivocally good" for them. That myth was destroyed as rent, healthcare, and debt-reduction trumped consumer gains. However, as angry Americans are seeing every day now, gas prices at their local pump have been soaring... having never dropped as they should. In fact, as the following anger-inducing chart below exposes, gas prices for the average joe are almost 50% higher than would be expected given the low oil prices...

Futures Fizzle After Oil Fades Bounce Above $48

It has been more of the same overnight, as global stocks piggybacked on the strong US close and rose despite the lack of good (or bad) macro news, propelled higher by the two usual suspects: a higher USDJPY and a even higher oil, if mostly early on in the trading session.

US Treasuries Account For A Stunning 60% Of All Global Positive Yielding Debt

Here is why US yields are, if anything, set to decline more: on the other hand, the US accounts for almost 60% of all positive yielding debt and 89% of the positive yielding debt which has a tenor less than 1YR (Figure 4). Also, US debt accounts for 74% of the positive yielding G10 debt in the 1 – 5YR sector.

Futures Flat Despite China Scare As Oil Rebounds Over $47

The main risk over the weekend was that markets, which have now dropped for three consecutive weeks the longest negative streak since January, would focus their attention on the latest batch of negative Chinese economic news released over the weekend, which missed expectations across the board, most prominently in Retail Sales and Industrial Production, and following Friday's disappointing new credit loan data, would sell off as the Chinese slowdown once again becomes a dominant concern. However, after some initial weakness, the risks were all but gone when first the USDJPY jumped on another round of deflationary Japanese economic data which led to renewed hopes of more BOJ easing and a jump in the USDJPY and thus US futures.

Election 2016: Alien Vs Predator

"To those who abandon the Republican Party in this hour of crisis, I say: Good riddance! Go now, and never come back. Your bad advice and dogmatic arrogance brought America from a lone pinnacle of greatness in 2001 to second-rate status in 2016, the fastest decline of a dominant power since Napoleon invaded Russia. Go pester the Democrats, and do as much damage to them as you did to us Republicans... There's a war on... three different wars, in fact. To remain neutral is moral cowardice; to choose the wrong side would be downright wicked."

Liquidity Problems? Deutsche Bank Offers 5% Yields If Depositors Lock Up Their Money For Three Months

We were surprised to find that in a promotional offer by Europe's biggest (and by many accounts most insolvent) bank, Germany's Deutsche Bank is not only not rushing to penalize depositors, on the contrary it is offering its Belgian clients a 5% gross return for new €10,000 - €50,000 deposits if this money is locked up for the next three months. The offer is only valid for the next 40 days, until June 24.