• Marc To Market
    11/22/2014 - 10:16
    Contrary to the death of the dollar chatter, the US currency continues to appreciate.  Here's why there is still punch left in the bowl.  
  • Tim Knight from...
    11/21/2014 - 21:06
    As you can see by this view of the NQ, this massively bullish news has not, as of yet, represented any kind of sea-change in the markets. Before the day was even out (again, in some, not all markets...

Bear Stearns

Tyler Durden's picture

This Time 'Is' Different - For The First Time In 25-Years The Wall Street Gamblers Are Home Alone





The last time the stock market reached a fevered peak and began to wobble unexpectedly was August 2007. Markets were most definitely not in the classic “price discovery” business. Instead, the stock market had discovered the “goldilocks economy." But what is profoundly different this time is that the Fed is out of dry powder. Its can’t slash the discount rate as Bernanke did in August 2007 or continuously reduce it federal funds target on a trip from 6% all the way down to zero. Nor can it resort to massive balance sheet expansion. That card has been played and a replay would only spook the market even more. So this time is different.  The gamblers are scampering around the casino fixing to buy the dip as soon as white smoke wafts from the Eccles Building.  But none is coming. For the first time in 25- years, the Wall Street gamblers are home alone.

 
Tyler Durden's picture

The $70 Trillion Problem Keeping Jamie Dimon Up At Night





Yesterday, in a periodic repeat of what he says every 6 or so months, Jamie Dimon - devoid of other things to worry about - warned once again about the dangers hidden within the shadow banking system (the last time he warned about the exact same thing was in April of this year). The throat cancer patient and JPM CEO was speaking at the Institute of International Finance membership meeting in Washington, D.C., and delivered a mostly upbeat message: in fact when he said that the industry was "very close to resolving too big to fail" we couldn't help but wonder if JPM would spin off Chase or Bear Stearns first. However, when he was asked what keeps him up at night, he said non-bank lending poses a danger "because no one is paying attention to it." He said the system is "huge" and "growing." Dimon is right that the problem is huge and growing: according to the IMF which just two days earlier released an exhaustive report on the topic, shadow banking (which does not include the $600 trillion in notional mostly interest rate swap derivatives) amounts to over $70 trillion globally.

 
Tyler Durden's picture

Paul Craig Roberts: "A Rigged Gold Price Distorts Perception Of Economic Reality"





The US economy and financial system are in worse condition than the Fed and Treasury claim and the financial media reports. Gold serves as a warning for aware people that financial and economic trouble are brewing. In the 21st century, US debt and money creation has not been matched by an increase in real goods and services. The implication of this mismatch is inflation. Without the price-rigging by the bullion banks, gold and silver would be reflecting these inflation expectations.

 
Tyler Durden's picture

Angelo Mozilo Responds To Charges:: “No, No, No, We Didn’t Do Anything Wrong”





Here are some of the choice excerpts from the man who is baffled by a new effort to punish him, proud of past triumphs and incensed by criticism: “You’ll have to ask those people, ‘What do you have against Mozilo, what did he do?’” he said in a 30-minute call with Bloomberg News before Labor Day, one of his few interviews since the firm’s downfall. “Countrywide didn’t change. I didn’t change. The world changed.”  Mozilo doesn’t understand why he and his firm, blamed by lawmakers and authorities for lax underwriting and predatory lending, have been seen as villains. “No, no, no, we didn’t do anything wrong,” he said, adding that a real estate collapse was the root of the crisis. “Countrywide or Mozilo didn’t cause any of that.” Yes, the Moz talks about himself in the third person.

 
Tyler Durden's picture

Wall Street Isn't Fixed: TBTF Is Alive And More Dangerous Than Ever





Practically since the day Lehman went down in September 2008 Washington has been conducting a monumental farce. It has been pretending to up-root the causes of the thundering financial crisis which struck that month and to enact measures insuring that it would never happen again. In fact, however, official policy has done just the opposite. The Fed’s massive money printing campaign has perpetuated and drastically enlarged the Wall Street casino, making the pre-crisis gamblers in CDOs, CDS and other derivatives appear like pikers compared to the present momentum chasing madness. In a nutshell, the Fed’s prolonged regime of ZIRP and wealth effects based “puts” under risk assets has destroyed two-way markets.

 
Phoenix Capital Research's picture

The Financial System is Primed For a Crisis Worse Than 2008





The market is extremely tired and the systemic risks underlying the Financial Crisis are in no way resolved. With investor complacency (as measured by the VIX) at record lows, the Fed withdrawing several of its more significant market props, and low participation coming from the larger institutions, this market is ripe for a serious correction.

 
Tyler Durden's picture

Here's What Wall Street Bulls Were Saying In December 2007





The attached Barron’s article appeared in December 2007 as an outlook for the year ahead, and Wall Street strategists were waxing bullish. Notwithstanding the advanced state of disarray in the housing and mortgage markets, soaring global oil prices and a domestic economic expansion cycle that was faltering and getting long in the tooth, Wall Street strategists were still hitting the “buy” key. In fact, the Great Recession had already started but they didn’t have a clue: "Against this troubling backdrop, it’s no wonder investors are worried that the bull market might end in 2008. But Wall Street’s top equity strategists are quick to dismiss such fears."

 

 
Tyler Durden's picture

Frontrunning: July 28





  • The market in one sentence: Buying on Dips Pays Most in Five Years as Stocks Rebound (BBG)
  • Europe subdued, Russia shares tumble on new sanctions (Reuters)
  • Chinese Data Don’t Add Up (WSJ)
  • Argentine Default Drama Nears Critical Stage (WSJ)
  • Global Pressure Mounts on Israel to End Gaza Fighting (BBG)
  • Ukraine troops advance as experts renew attempt to reach crash site (Reuters)
  • Prospects Brighten for Republicans to Reclaim a Senate Majority (WSJ)
  • Europe’s banking union faces legal challenge in Germany (FT)
  • Investors Bet on China's Large Property Developers (WSJ)
  • Hague court orders Russia to pay over $50 billion in Yukos case (Reuters)
 
Reggie Middleton's picture

Bitcoin Reached Next Stage In Money Evolution, Smart Contracts Replace Wall Street Bank Functions - NOW!





The future of finance has arrived and NOTHING will be the same. Smart contracts as a proof of concept are now no longer a concept. This technology makes it clear why an "investment bank in a wallet" causes banks to fear bitcoin!

 

 

 
Tyler Durden's picture

Draghi Knows Narratives Are No Longer Enough, But "There Are No Easy Choices Here"





The problem for the ECB, of course, is that Espirito Santo and Erste are not isolated incidents, any more than Laiki and Fortis and Anglo Irish and WestLB and BMPS and... should we go on? ...were isolated incidents. "...with apologies to Lewis Carroll, here’s the choice facing our modern-day Alice (Mario Draghi) – does (s)he sing a lullaby that keeps the Red King (investors) sleeping for a few more years, albeit at the cost of drinking a terrible potion that will turn her into a hideous giant... or does she let the Red King wake up, shattering the dream and risking the existence of everything, herself included, but preserving the story of her beautiful face and form?" If we were betting men (and we are), we’d wager on Draghi drinking the potion and keeping the dream alive, no matter how complicit it makes him in preserving a very ugly and very politically-driven status quo. But there’s a non-trivial chance that it’s just too much to swallow...

 
Tyler Durden's picture

The (Other) Truth About The Financial Crisis: 10 "Geithner-Sized" Myths Exposed





After the crisis, many expected that the blameworthy would be punished or at the least be required to return their ill-gotten gains—but they weren’t, and they didn’t. Many thought that those who were injured would be made whole, but most weren’t. And many hoped that there would be a restoration of the financial safety rules to ensure that industry leaders could no longer gamble the equity of their firms to the point of ruin. This didn’t happen, but it’s not too late. It is useful, then, to identify the persistent myths about the causes of the financial crisis and the resulting Dodd-Frank reform legislation and related implementation...."Plenty of people saw it coming, and said so. The problem wasn’t seeing, it was listening."

 
Phoenix Capital Research's picture

Could the Markets Be Setting Up For an Autumn Crash?





This pattern played out in 1907, 1929, 1987, 2000 and most recently in 2008.

 
 
Phoenix Capital Research's picture

Inflation is Percolating Throughout the Financial System





As the cost of living increases around the globe, wage protests and strikes have become commonplace, particularly in the emerging market space:

 
 
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