Gambling

Some know it as one of the longest running Las Vegas pre-bankruptcy dramas. But what Caesars Entertainment really is, is the biggest hedge fund hotel in "special situation" history: with "investors" such as Paulson, Omega, Canyon, Soros, JMB, Scoggin, Och Ziff and many others, this is quite literally the who is who of biggest and baddest US hedge funds.

"I held in my hand the Holy Grail for the Chicago Mercantile Exchange. The most influential economic mind of the twentieth century provided the CME with the intellectual foundation upon which to build its financial superstructure."

• Gold claws back ground, European assets lose Greek tarnish (Reuters)
• Greece's Euro Exit Back on the Agenda Next Year, Economists Say (BBG)
• Greece submits bill needed to start rescue talks (Reuters)
• Wall Street Lenders Growing Impatient With U.S. Shale Revolution (BBG)
• Overtime Rules Send Bosses Scrambling (WSJ)
• As Markets Swing, Beijing Steadies Yuan (WSJ)
• Tennessee rampage suspect went to Qatar in 2014 (Reuters)
• Kathryn Dominguez to Be Nominated for Fed Governor (WSJ)

A 30-40% decline in indices and still it appears the average Chinese person thinks "making money trading stocks is easier than farmwork." As the following chart shows, a thundering herd of margin calls, panicing policy makers, and media frenzy has done nothing to dampen renewed gambling fever in what is now the most speculative nation in the world as margin-financing as a percent of trading volumes has exploded once again in the last few days...

With apologies to his fans, Jerry is an evil little mouse who constantly pesters Tom the Cat. Tom tries and tries, but cannot seem to overpower someone who is a fraction of his size and strength.

• Fed Chair Yellen To Speak As Global Tensions Rise (WSJ)
• Greek PM Tsipras seeks party backing after abrupt concessions (Reuters)
• France Hails Greek Aid Proposals as Germany Reserves Judgment (BBG)
• Greek PM says does not have mandate to exit eurozone (Reuters)
• France Intercedes on Greece’s Behalf to Try to Hold Eurozone Together (WSJ)
• Frozen Funds, Fleeing Tourists: Greek Startups Feel the Pinch (BBG)
• Doubts Simmer Despite China’s Gain (WSJ)

Moments ago MarketNews reported that during today's "marathon governmental meeting" in which Greek PM Alexis Tsipras sat down with his party to hammer out and complete the "compromise" Greek proposal to be sent to the Troika before midnight, the prime minister told his ministers that he was "ready for compromises," suggesting he was willing to clash with the ultra-left part his party, Syriza. So far so good, and perhaps indeed suggestive of a big step down. The problem emerges upon a closer read of the proposal, which is clearly not nearly "capitulatory" enough.

After dozens of separate interventions, manipulations, and central-planning machinations over the past three weeks, China resorted to threats overnight when it called for the arrest of "hostile short sellers." The reason they went full Orwell, this is the great loss of 'wealth' in China's history... losing equivalent to 15 Greeces in just 17 days.

Chinese markets bounced last night following drastic intervention by the state when it banned large players from selling their shares in listed companies – arresting the over 30% decline of the past four weeks.

A shocking and uncharacteristic display of common sense

Among all the mindless blather served up by the talking heads of bubblevision is the recurrent claim that “its all priced-in”. That is, there is no danger of a serious market correction because anything which might imply trouble ahead—-such as weak domestic growth, stalling world trade or Grexit——is already embodied in stock market prices. Yep, those soaring averages are already fully risk-adjusted! Nothing to see here, it will be argued. Today’s plunge is just another opportunity for those who get it to “buy-the-dip”. And they might well be right in the very short-run. But this time the outbreak of volatility is different. This time the dip buyers will be carried out on their shields.

As the strong dollar prices out the South American buyers who have been largely responsible for Miami's booming condo market, developers look East for a savior.

By insuring spoiled brats/vested interests never face the consequences of their actions and choices, we guarantee failure of the entire system.

The market may be scratching its head over the outcome of this Sunday's Greek referendum, soaring on the faintest trace of good news such as the report of Tsirpas' capitulation this morning then reluctantly selling off as the euphoria is rejected, but for the bookies the outcome is now clear: earlier today Ireland's Paddy Power announced it has "paid out five figures" in winnings to gamblers who bet that Greece will back a July 5 austerity referendum that may seal the nation’s future as part of the euro region.

Cheap, easy credit has created moral hazard and nurtured magical thinking throughout the global economy.