Frontrunning: September 12

  • Selloff gathers pace as stimulus pullback fears deepen (Reuters)
  • Clinton's bout of pneumonia raises worries for Democrats (Reuters)
  • Google's Self-Driving Car Project Is Losing Out to Rivals (BBG)
  • OPEC sees more oil supply from rivals, implying larger 2017 surplus (Reuters)
  • Oil falls as U.S. drills more (Reuters)

"Global Market Rout" - Bond Selloff Snowballs Into Stock Liquidations On "Stimulus Pullback" Fears

With traders in the US arriving at their desks, the global selling appears to be accelerating and as Bloomberg notes, "a selloff in fixed income is starting to snowball into a global market rout" driven by what Reuters dubbed "growing concerns that global central banks' commitment to the post-crisis orthodoxy of super-low interest rates and asset purchase programs may be waning."

"There Will Be More Attacks" French PM Warns 15,000 Being Radicalized

With anti-EU right-wing Front National leader Le Pen surging in the polls, French PM Manuel Valls appears to be taking a populist shift to more radically right also. During a TV interview this weekend, Valls said there were at least 15,000 people "on the radar of police and intelligent services who were in the process of being radicalized," but argued that Sarkozy's plan to "systematically place French citizens suspected of having militant links in special detention facilities" was the wrong solution.

Belgium Threatens To Sue Caterpillar For "Brutal, Cruel And Heartbreaking" Decision To Fire 2,000

Caterpillar has gotten into hot water when Belgium's government announced it was considering legal action against the machinery company over the U.S. heavy equipment maker's decision to close a manufacturing site and lay off more than 2,000 workers. Prime Minister Michel described the expected closure of the Gosselies plant in the Wallonia region as "brutal, cruel and heartbreaking."

A Political Hurricane Is About To Sweep Across Europe

If you’ve been paying attention, you could see this coming a mile away. Brexit is just the start of a much, much bigger trend..."The backlash we are witnessing represents a worldwide revolt against globalism and the disconnected and hopelessly corrupt status quo."

The Official Story Is Now The Conspiracy Theory: Paul Craig Roberts Warns "The Tide is Turning"

In a few days it will be the 15th anniversary of 9/11, and this November 22 will be the 53rd anniversary of the assassination of President John F. Kennedy in Dallas, Texas. These two state crimes against democracy destroyed American democracy, accountable government, and the Constitution’s protections of civil liberty. Years after the damage done by these events the American people no longer believe the official stories.

Stock Market Bubble Will Pop, Social Mood Will Get Extremely Ugly

Buying equities will put additional pressure on corporate CEOs to cut expenses and to postpone investments, fostering even greater Main Street resentment toward the financial elite. Consumer confidence won’t rise as consumption and economic growth stagnate. Having so clearly sided with owners of capital, rather than the employees of capital, global central banks are likely to become an easy target for populist ire.

With All Eyes On The ECB, Catatonic Global Markets Remain In State Of Near Paralysis

As the market's comatose trading range continues with no notable moves for nearly 40 consecutive days, there is some hope volatility may return after today's main event, the ECB's announcement due in just two hours, when Mario Draghi may surprise the market in either direction. As of today, the S&P500 has held in a band of 1.5% for 39 days, the narrowest ever for that length of time.

Negative Rates & The War On Cash, Part 2: "Closing The Escape Routes"

History teaches us that central authorities dislike escape routes, at least for the majority, and are therefore prone to closing them, so that control of a limited money supply can remain in the hands of the very few. The existence of escape routes for capital preservation undermines the viability of the banking system, which is already over-extended, over-leveraged and extremely fragile. In the 1930s, gold was the escape route, so gold was confiscated. This time cash serves that role...