AIG

Government By Goldman

"...now Cohn’s in charge of the economy and talking about eliminating financial reform and basically putting the country back to where it was in 2005, as if 2008 didn’t happen. I’ve started the countdown clock to the next financial crash, which will make the last one look mild."

World's Most Powerful Bank Issues As Major Warning

"Little by little, a few prominent voices in finance have started to express concerns about the state of financial markets...In fairness, no one has a crystal ball, not even the CEO of Goldman Sachs. But if these guys are telling the world that the market is overheated, you can probably imagine they’ve already started selling."

Dow Jones Changes "Hoax" Index Divisor For First Time In 2 Years

For the first time in two years, the owners of the Dow Jones Industrial Average have changed the benchmark’s divisor, the number used to determine how moves in the share prices of individual Dow components affect the level of the index... "Is the number of points that the Dow Jones now gives us a truth or a fictional truth?"

Barclays: "Hurricane Irma's Insured Damage Could Be The Largest Ever"

"Given the potential magnitude of this storm as well as the potential to impact a highly populated area, we think Irma’s insured damage in Florida could be the largest ever in the US. In a worst case scenario, catastrophe modelers AIR Worldwide and Karen Clark and Co. have estimated a repeat of the 1926 Miami hurricane could result in $125-130bn of insured damage."

FX Week Ahead: Cue The ECB To Disappoint; Buying Time For Fed To Catch Up?

After another 'interesting' non farm payrolls report, we start the week on a quiet note as the US observes the Labour Day holiday and Canada day speaks for itself.  Plenty of volatility to expect thereafter though, as it is the ECB's turn to manage market expectations, which so far show little sign of moderating as EUR longs are keen to hold positioning into a much expected tapering signal. 

How Much Harvey Damage Can Insurers Face Before They Crack?

It would take $100 billion or more of losses during a 12-month period to seriously threaten insurers’ balance sheets. For context, Hurricane Katrina, the costliest hurricane in US history, caused nearly $50 billion in insured losses in 2016 dollars.

FX Week Ahead - Fast Money Algos Stretch The Limits Again, Time For Redress

A common feature of the currency markets these days is to push the established themes and narratives as far they can be, and at a time when the USD is suffering on all fronts, fast money accounts are using thin market conditions to their advantage. Friday's price action emphasised this completely, as all it took was the absence of policy talk from Fed chair Yellen at Jackson Hole to set off another hit on the USD.

"Friends Don't Let Friends Buy VIX"

"You know a trade is getting crowded when my parents start asking about it.  You know just how one sided something is when people think that even Chuck Norris can’t make money buying vol... I think selling VIX is very crowded and fraught with danger."