Debt Ceiling

Asian Market Rout Goes Global On Tech, Tax And Government Shutdown Tremors

A selloff which started in Asia, driven by renewed liquidation of Chinese and Hong Kong tech stocks and accelerated by weaker metal prices which pushed the Shanghai Composite below a key support and to 4 month lows, spread to Europe and the rest of the world as investors continued to lock in year-end gains among the best performing assets amid a broad risk-off mood.

Deutsche Bank Explains The Five Biggest "Market Conundrums"

Deutsche Bank has highlighted the five most upsetting conundrums about the equity market, and proposes its explanations for them. The reason: "rationally explaining recent market moves will be essential to forecasting next year's market."

"When To Worry?": How Long After The Curve Inverts Does The Recession Begin

Sometimes inversion provides a timely signal for the economic cycle a la 2000, where Professor Curve predicted almost the ding-dong high in the SPX. However the 2006 episode of inversion dished up 7 months of pain for equity bears, with 18% further upside for the SPX. Same for 1989 where equities continued to rally 22% into the 1990 recession...

The Mother Of All Irrational Exuberance

"... relative to today's casino madness and the Goldman fairy tale hockey stick, Alan Greenspan circa April 2000 looks like a model of sobriety by comparison. So if that was Irrational Exuberance back in April 2000, what we have now is surely the mother thereof..."

How The Fed Destroyed The Functioning American Democracy And Bankrupted The Nation

"...a functioning democratic republic is premised on a simple agreement that We (the people) will freely choose our leaders... The intervention of the Federal Reserve into that equation, controlling interest rates, outright purchasing assets, and plainly goosing asset prices has introduced a cancer into the nation which has now metastasized."

What Could Go Wrong?

"As the late Joseph Goebbels used to say describing his misinformation technique, if you’re going to lie, make sure it’s a whopper..."

The Dollar Funding Shortage: It Never Went Away And It's Starting To Get Worse Again

Negative cross currency basis swaps indicate that the structural tightness in dollar liquidity never disappeared despite the weaker dollar. If dollar funding markets get a lot tighter again, this won’t be good news for EM markets with offshore (Euro) dollar debt in the region of $10 trillion. Rolling over dollar debt periodically will be uncomfortable, to say the least, for some of the region’s banks.

Key Events And FX Week Ahead: Central Banks Send Markets Into A Coma, Someone Say Something New Please!

European politics returns with a bang this week, when not only will attention be focused on Austria to see if the right wing Freedom Party joins the People's Party in a historic governing coalition, in an embarrassing blow to Europe's establishment, but also whether Catalan President Puidgemont will (again) fomally - and this time clearly - announce whether he has declared independence