Creditors

Members of Syriza's Left Coalition, led by Panagiotis Lafazanis who once plotted to storm the Greek mint, seize the country’s reserves, and arrest central bank governor Yannis Stournaras, have broken away and formed their own political party which they say will support Grexit and stand firm in the face of German "blackmail."

• No End in Sight for Oil Glut (WSJ)
• Dozens of Clinton emails were classified from the start, U.S. rules suggest (Reuters)
• China August Manufacturing Activity Hits Lowest Level Since 2009 (WSJ)
• German Manufacturing Strengthens as Economy Shifts Up a Gear (BBG)
• Israel responds to rocket attack with protest and air strikes (FT)
• ASX carnage: 2015 fast becoming a year to forget  (Canberra Times)
• Hong Kong Stocks Enter Bear Market After Falling From April Peak (BBG)

Update: GREEK PM TO HAND IN RESIGNATION TO PRESIDENT LATER ON THURSDAY -GOVT OFFICIALS 

"Greek state broadcaster ERT is reporting that the embattled prime minister will announce the vote later today. The PM has been meeting with government officials this afternoon and could resign from office having called the vote. September 13 and 20 have been touted as possible dates."

Seconds ago, someone accidentally (we hope) pulled a Janet Yellen as the following just came across the wires

FOMC MINUTES: MEMB 'GENERALLY AGREED' MORE INFO NEEDED TO HIKE
FOMC MINUTES: NO TIP TOWARDS SEPT LIFTOFF, DOESN'T RULE IT OUT

But the bottom line is that the Fed just admitted things are going from bad to worse: "The risks to the forecast for real GDP and inflation were seen as tilted to the downside." The question now is what comes first: QE4 or the first rate hike in nearly a decade.

This is precisely what has happened in Spain during the 2012 banking crisis. Since then it’s also happened in Cyprus, Greece…and it is now perfectly legal in the US courtesy of a clause in the Dodd-Frank bill.

Earlier today an EU official was reported as saying that Greek banks will exclude all depositors from losses until the EU’s Bank Recovery and Resolution Directive rules go into effect on Jan. 1, 2016.  Needless to say this was vastly different to Dijsselbloem's blanket guarantee statement from Friday, and suggests that depositors will indeed be bailed-in, but not right now: only after BRRD rules come in place on the first day of 2016.

Greek PM Alexis Tsipras has lost the support he needs to win a confidence vote, setting up the possibility of snap elections. Meanwhile, German Chancellor Angela Merkel's bulletproof reputation will be tested on Wednesday when the Bundestag will be forced to vote on the Greek bailout without an assurance that the IMF will ultimately shoulder a portion of the burden.

A look at next week's data in the somewhat larger context, and a look at interest rate differentials

Just a few weeks ago, US talk show host Stephen Colbert was asked if he thought that Donald Trump had a chance of becoming President of the United States. Colbert responded sincerely. “Honestly, he could. And that’s not an opinion of Trump. That’s my opinion of our nation.” He’s right. The Land of the Free may very well be ready for something completely different. And Trump certainly seems able to deliver.

Anyone with any sense for global economic trends ought to be worried. The signs are everywhere of a serious deflationary crisis.

After a week of relentless FX volatility, spilling over out of China and into all other countries, and asset products, it was as if the market decided to take a time-out overnight, assisted by the PBOC which after three days of record devaluations finally revalued the Yuan stronger fractionally by 0.05% to 6.3975. And then, as a parting gift perhaps, just as the market was about to close again, the Chinese central bank intervened sending the Onshore Yuan, spiking to a level of 6.3912 as of this writing, notably stronger than the official fixing for the second day in a row. In fact the biggest news out of China overnight is that contrary to expectations, the PBOC once again "added" to its gold holdings, boosting its official gold by 610,000 ounces, or 19 tons, to 1,677 tones.

Moments ago the Greek parliament, after a dramatic, most likely on purpose, overnight session - because when you are a puppet government of Belgium/Brussels you have to put in extra effort to prove you are "independent" - gave its approval for the third Greek bailout when Tsipras secured votes of more than 151 lawmakers in country’s 300-seat parliament. As on previous cases, the vote passed with substantial opposition support. In terms of numbers, the rebel faction within Syriza is now up to 42, with 43 being seen as the threshold beyond which Tsipras has no choice but to call elections. In other words the Tsipras government now hangs in the fate of just one person.

The last time former Goldman employee and then Treasury Secretary Hank Paulson bailed out the hedge fund known as Goldman Sachs, and its closest peers (but not its biggest fixed income competitor Lehman Brothers of course), even the traditionally confused American public pushed back on the structure of the bailout which converted the Goldman holding company into an FDIC-insured company, which led many to ask: just where are Goldman's deposits? The answer, of course, was nowhere, so perhaps in anticipation of the logical pushback against its second, upcoming bailout which would see the taxpayer-backed depositor insurance company once again provide trillions in cash to banks as well as the glorified hedge funds such as Goldman, the firm moments ago decided to do something it has never done before: become an actual bank with checking accounts and such.

“Maybe this isn’t a great indication of the state of the economy.”

The Greek parliament is expected to meet on Thursday for a final vote on the country's new €86 billion aid package. PM Alexis Tsipras, with the help of opposition lawmakers, will likely succeed in passing the draft, which includes some 40 new laws. Meanwhile, Greeks are increasingly staging Grexits of their own by eschewing the euro in favor of alternative payments systems.