Capital Formation

Tyler Durden's picture

Free Trade Benefits Vs. Fears Of Foreign Goods

Meant to extend and widen trade and related commercial relationships between the participating countries, the Trans-Pacific Partnership (TPP) has also been presented as a way for the U.S. to maintain his economic and political power in East Asia in the face of the rising influence of China in that part of the world. What should be most clear is that the Trans-Pacific Partnership is not a free trade agreement. Parts of it may, no doubt, lower some trade barriers, thus making easier the production, sale and purchase of a wider variety of imports and exports. However, TPP, like all other trade agreements in the post-World War II era is a managed trade agreement.

Tyler Durden's picture

Freedom Of Opportunity, Not Equality Of Opportunity

The goal of equality of opportunity is both absurd and vicious. Achieving it would require that children all be raised in the same environment and have the same genetic inheritance. In contrast, what we should actually strive for is the freedom of opportunity. Freedom of opportunity means the ability to exploit the opportunities afforded by reality, without being stopped by the initiation of physical force, in particular the initiation of physical force by the government or that takes place with the sanction of the government.

Tyler Durden's picture

Central Banks Made The Whole World “Buy Time”... There Are Signs We’re Beginning To Sell It

Can you arbitrage time?  Can you buy and sell time? We think that you can from the perspective of time horizons. In our view, financial markets are operating on the wrong time horizon – one that is too long (thanks to central banks ZIRP/NIRP and credit creation) - although there are signs that this is beginning to change.

Tyler Durden's picture

Why From China's Biggest Bear, Hugh Hendry Became One Of Its Biggest Bulls

Considering that Chinese equities are the best performing market in USD terms (second only, oddly enough, to Russia) in 2015, one can see why after a disappointing 2012 and 2013, and modest 2014, Hendry has hit 2015 out of the park with a bang, generating a 10.6% return in the first two monthes of the year. So is Hendry still bullish on China's stock market prospects?  Why yes, and then some. But is he is contrarian just for the sake of being contrarian? Does he see something in China that nobody else does? Or is he simply right... or wrong, as the case may be? We will let readers decide.

Tyler Durden's picture

Bill Ackman Faces FBI Probe Over Possible Herbalife Stock Manipulation

Herbalife stock is up over 5% after hours after WSJ reports Bill Ackman (among others) made false statement about Herbalife's business models to regulators - in order to spur investigations into the company and lower its stock price. This comes just months after Ackman kinda-sorta-didn't-really insider-trade in the Allergan 'scam' that we detailed here. We suspect Whitney Tilson (and his Lumber Liquidators positions) is getting a little nervous now... and Carl Icahn is quietly laughing to himself.

Tyler Durden's picture

A Bull In A China Shop

China’s stock market is on fire but its economy is cooling off.  Can the divergence last? And what’s next for China? Stay tuned to find out.

Tyler Durden's picture

Meet The Person Who Will Determine If The Market Is "Fair

A week ago, we were surprised to learn that one of the most prominent critics of HFT, Joseph Stiglitz, had been barred from an SEC Panel that will "advise regulators on issues facing U.S. equity markets."  Today, a day after the SEC busted DirectEdge for failing to "accurately describe the order types being used on the exchanges" namely the infamous Hide not Slide, even after said order had repeatedly made the front page of the WSJ, the SEC finally announced the full list of members of the "New Equity Market Structure Advisory Committee" which will focus on the structure and operations of the U.S. equities markets. Alas most of the committee members are, sadly, placeholding figureheads. Because there is only one person on the list whose participation matters, and whose presence is not at all surprising...

Cognitive Dissonance's picture

Guest Post - Changing the Script

Einstein advised “We cannot solve our problems with the same level of thinking that created them”. Yet that’s mostly what I see happening today on many levels.

Tyler Durden's picture

Chris Rock: Bring The Pain Of Economic Ignorance

American comedian Chris Rock's flair for offensive but incisive comedy is well known. But his knowledge in other fields is lacking, and in some cases utterly misinformed. In a recent interview with Frank Rich of New York Magazine, the stand-up joke spitter has it all wrong when it comes to economics. No surprise there; the entertainment industry, despite raking in billions every year, is the brain trust of economic ignorance.

Tyler Durden's picture

Nikkei Slides Back Below 18,000 On Deeper-Than-Expected Recession, Record Bankruptcies

Remember when that absolute disaster of a Q3 GDP print hit Japan and the world of talking-heads proclaimed... "yeah, but.. capex revisions and stuff and things will make it all better" or some such nonsense? Well that's exactly what it was - utter nonsense. Going entirely the opposite direction to expectations of a revision up to -0.5% QoQ, Japanese GDP was revsied even lower to -1.9% QoQ (from -1.6% QoQ initial) confirming the quadrupled-dip-recession. Add to that the fact that Abenomics has ushered in record bankruptcies this year as small- and medium-sized businesses have been crushed by soaring import costs amid the collapsing JPY and you have a recipe for domestic disaster... and having rallied in anticipation of the exuberant revisions in Friday's US session, Japanese stocks are sliding quickly off the 18,000 level.

Bruno de Landevoisin's picture

Uncork the Central Bank Bubbly!

The Federal Reserve and its owners print and party, while the rest of us work and weep..................

Bruno de Landevoisin's picture

StealthFlation!!! Got Gold?

Money is stored labor. Labor is part of human life. To devalue money is to debase life itself.

Bruno de Landevoisin's picture

Economic Energy Elation

Money is stored labor.  Labor is part of human life.  To devalue money is to debase life itself.

Tyler Durden's picture

Hugh Hendry Live 3: "To Bet Against China Is To Best Against Central Bank Omnipotence"

In the final part of Hugh Hendry's 3-part (part 1 and part 2 here) interview with MoneyWeek's Merryn Somerset the Sanguine Scot, perhaps surprisingly to some given his previous negativity - though fitting with his world view of fiat currency destruction - believes "to bet against China or Chinese equities, or the Chinese currency is to bet against the omnipotence of central banks. One day that will be the right trade, just not ready or sure that that is the right trade today."

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