• Tim Knight from...
    10/06/2015 - 17:03
    As we head into another earnings season, the bulls better pray to whatever pagan gods they worship that company after company magically defy the downturn that the economy is quite obviously entering.


Sprott Money's picture

Big Business Is Economic Cancer, Part I

Clearly the title to this piece will be viewed as controversial, if not entirely heretical, by many readers. However, the facts (and more importantly) the economic principles here are unequivocal. “Bigger” is not better.

Tyler Durden's picture

Rewarding Failure - Volkswagen CEO To Receive $32 Million Pension

Martin Winterkorn, engulfed by a diesel-emissions scandal at Volkswagen AG, amassed a $32 million pension before stepping down Wednesday, and may reap millions more in severance depending on how the supervisory board classifies his exit.

Tyler Durden's picture

Frontrunning: September 24

  • Stocks slip for fifth straight day, euro holds steady (Reuters)
  • VW recall letters in April warned of an emissions glitch (Reuters)
  • VW Cheating Scandal Threatens to Ensnare BMW as Probe Widens (BBG)
  • Pope Francis set to address fractious U.S. Congress (Reuters)
  • Norway Cuts Rates to Record Low to Save Economy From Oil Slump (BBG)
  • Taiwan Cuts Rate for First Time Since 2009 as Exports Falter (BBG)
  • Janet Yellen to speak at UMass on Thursday (Daily Collegian)
  • A Big Bet That China’s Currency Will Devalue Further (NYT)
  • Debt Relief for Students Snarls Market for Their Loans (WSJ)
Tyler Durden's picture

European Equities Are On The Ropes

While investors (or more likely, traders) often agonize over each and every tick of a market, there are undoubtedly some junctures that are more critical than others. European equities appear to be at such a juncture presently.

Tyler Durden's picture

TSA Agent Caught Stealing From Passenger's Wallet At NYC Airport Checkpoint

TSA agents don’t get enough credit. They aren’t just experts at sexually molesting airport passengers, although they are very good at that. They have also become well known for outright theft.

Phoenix Capital Research's picture

The End Game Has Begun

In short, the next round of the great crisis is beginning.  It will take time to unfold, but we have reached Peak Central Bank Intervention. When Central Banks loosen policy and the markets fail to respond, you're in the End Game.

Tyler Durden's picture

Clinton Takes Aim At Soaring Drug Costs, Proposes $250 Monthly Cap

As WaPo reports, "Hillary Clinton is proposing a $250 monthly cap on the amount patients with chronic and serious medical problems would have to pay out of pocket for prescription drugs as a way to reduce the effect of skyrocketing drug prices on consumers." "Nobody in America should have to choose between buying the medicine they need and paying rent," Clinton says. 

Tyler Durden's picture

Destroying Dimon's Delusionary View Of Economic Realities

While Mr. Dimon's view - "Amerca has the best hand ever dealt right now." is certainly uplifting, it is a bit delusional. But of course, give any person a billion dollars and they will likely become just as detached from economic realities. Does America have "greatest hand ever dealt." The data certainly doesn't suggest such. However, that can change. We just have to stop hoping that we can magically cure a debt problem by adding more debt and then shuffling it between Central Banks.

Tyler Durden's picture

US Equity Futures Hit Overnight Highs On Renewed Hope Of More BOJ QE

After sliding early in Sunday pre-market trade, overnight US equity futures managed to rebound on the now traditional low-volume levitation from a low of 1938 to just over 1950 at last check, ignoring the biggest single-name blowup story this morning which is the 23% collapse in Volkswagen shares, and instead have piggybacked on what we said was the last Hail Mary for the market: the hope of more QE from either the ECB or the BOJ. Tonight, it was the latter and while Japan's market are closed until Thursday for public holidays, its currency which is the world's preferred carry trade and the primary driver alongside VIX manipulation of the S&P500, has jumped from a low of just over 119 on Friday morning to a high of 120.4, pushing the entire US stock market with it.

Tyler Durden's picture

Greece Votes: Syriza Wins But Neo-Nazis Top Among The Unemployed

Greece went to the polls on Sunday with a choice that really wasn't a choice and even as Alexis Tsipras looks set to prevail the most shocking electoral outcome is this: neo-Nazi Golden Dawn is set to come in third and garnered the most support of any party among Greece's unemployed.

Tyler Durden's picture

With Wages Down 5% In 42 Years, Jamie Dimon Says Stop Complaining, At Least You Have An iPhone

"It’s not right to say we’re worse off... If you go back 20 years ago, cars were worse, the air was worse. People didn’t have iPhones." That’s what you get when you ask a billionaire executive from a taxpayer bailed out, unaccountable industry for his thoughts on income inequality.

Tyler Durden's picture

The Fed's First "Policy Error" Was Not Yellen's "Dovish Hold" But Bernanke's Tapering Of QE3

"At a recent investor gathering a question was asked, prior to the FOMC meeting, in the spirit of why the Fed should raise rates, whether or not anyone could argue that tapering itself was a “mistake”. It is an interesting question but the answer is surely a resounding “yes”. While a counterfactual is hard to prove, the impact of tapering in rates space is self evident. From the moment it began we saw a relentless fall in long term rates and a return to where those rates more or less stood around the onset of (endless) QE3." - DB

Tyler Durden's picture

It Begins: Australia's Largest Investment Bank Just Said "Helicopter Money" Is 12-18 Months Away

"Instead of acting via bond markets and banking sector, why shouldn’t public sector bypass markets altogether and inject stimulus directly into the ‘blood stream’?... CBs directly monetizing Government spending and funding projects would do the same. Whilst ultimately it would lead to stagflation (UK, 70s) or deflation (China, today), it could provide strong initial boost to generate impression of recovery and sustainable business cycle... What is probability of the above policy shift? Low over next six months; very high over the longer term."

Tyler Durden's picture

Moody's Downgrades France, Blames "Political Constraints", Sees No Material Reduction In Debt Burden

Citing "continuing weakness in the medium-term growth outlook," Moody's has downgraded France:


Apearing to blame The EU's "institutional and political constraints," Moody's expects French growth to be at most 1.5% and does not expect the debt burden to be materially reduced this decade.

Tyler Durden's picture

Weekend Reading: Fed Rate Failure

The current surge in deflationary pressures is not just due to the recent fall in oil prices, but rather a global epidemic of slowing economic growth. While Janet Yellen addressed this "disinflationary" wave during her post-meeting press conference, the Fed still maintains the illusion of confidence that economic growth will return shortly. Unfortunately, this has been the Fed's "Unicorn" since 2011 as annual hopes of economic recovery have failed to materialize.

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