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"Risky Business": Companies Are Now Funding Share Buybacks By Selling Bonds To Other Companies

"This is a risky business. Can they get it wrong? Absolutely they can get it wrong."

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OECD Joins Chorus Of Global Confusion, Slashes Growth Forecasts As It Urges Rate Hike

The OECD is well aware of the possibility that a Fed hike could plunge emerging markets into chaos. Nevertheless, the time to hike is apprently now...

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A Sucker's Rally?

The markets are clearly sending the same warning signals that they always have. It is only a question of whether we are willing to listen, or allow our "greed" to keep us at the casino table hoping for one more "hot hand." One thing is for certain, if the market does muster a rally strong enough in the week's ahead to retest the previous bullish trend moving average, it could very well be a "sucker's rally."

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Frontrunning: August 28

  • Stock Halts Added to Monday’s Market Chaos (WSJ)
  • Fed Up Investors Yank Cash From Almost Everything Just Like 2008 (BBG)
  • Drop in Stock Futures Signal Halt to S&P 500's Relief Rally (BBG) - at least until the BOJ ramps USDJPY up again
  • Hacker Killed by Drone Was Islamic State’s ‘Secret Weapon’ (WSJ)
  • Greece's Syriza to win election but face setback, poll shows (Reuters)
  • Puerto Rico Spends More Than $60 Million on Debt Restructuring (BBG)
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Yuan Strengthens Most Since March, China Unveils New Bailout Source After Rescue Fund Runs Out Of Fire-Power

Update: China readies new bailout mechanism - pooling CNY2 Trillion of Pension funds for "investment"

A busy night in AsiaPac before China even opens. Vietnam had a failed bond auction, Japanese data was mixed (retail sales good, household spending bad, CPI just right), Moody's downgrades China growth (surprise!), China re-blames US for global market rout, and then the big one hits - China's bailout fund needs more money (applies for more loans from banks) - in other words - The PBOC just got a margin call. China margin debt balance fell for 8th straight day (although the short-selling balance picked up to 1-week highs). China unveiled some economic reforms - lifting tax exemption and foreign real estate investment rules. PBOC fixesds the Yuan 0.15% stronger - most since March, but even with last night's epic intervention, SHCOMP looks set for its worst week since Lehman.

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The S&P's 13th Trip Thru 2,100 Since Feb 13th: Call It Monetary Rigor Mortis - The Bull Is Dead

The robo machines pushed their snouts through 2100 on the S&P index again yesterday. This was the 13th time since, well, February 13th that this line has been re-penetrated from below. But don’t call it an omen of bad luck; its more like monetary rigor mortis. The bull market is dead, but the robo-machines and talking heads of bubble vision just don’t know it yet.

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Deja Vu: The Return Of The 4-Horseman Of Tech

"Giddy up! The Four Horsemen of Tech", July 17, 2015 - "Google, Apple, Amazon, and Facebook -- helped push the Nasdaq to an all-time high Friday morning."

"Cramer's Four Horsemen Of Tech" - September 25, 2007 "Apple, Research in Motion, Google and are up 31% as a group since he recommended them back on June 6. Despite the market being down today, each of these four stocks hit new highs."

"The Four Horsemen Of The New Economy" - October 2, 2000 "More than any other collection of companies, Oracle, Sun Microsystems, EMC, and Cisco Systems represent the building blocks of Net business."

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Peter Schiff On The Big Picture: The Party's Ending

While the party in the 1990s ended badly, the festivities currently underway may end in outright disaster. The party-goers may not just awaken with hangovers, but with missing teeth, no memories, and Mike Tyson's tiger in their hotel room.

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5 Things To Ponder: Independence Day Reading

This weekend's reading list is a smattering of articles to enjoy between your favorite beverage, grilled meat and really fattening desert. Just remember to go back to the gym on Monday...

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In These Cities, Jobs Are Plentiful And Housing Is Cheap

If there are two things that are scarce in the US it’s good jobs and affordable housing. But all is not lost, because apparently, there are some places in America where the Goldilocks combination of good jobs and affordable housing actually exists.

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A Bubble On Thin Ice

The current asset bubble depends on a number of perceptions that could easily be put to the test by unexpected developments. There is a widespread consensus on a number of issues. This includes the belief that the economy will strengthen, that the emergence of “price inflation” is practically impossible, that “QE” will always guarantee rising asset prices, and that central banks have everything under control. Now we learn that in addition to this, a surprisingly large number of traders has no experience beyond the ZIRP & QE era of recent years. Meanwhile, the market’s underpinnings in terms of liquidity exhibit numerous weaknesses.

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Inside Q1's Punk GDP Numbers - Why Bubble Vision Doesn't Get It

Promptly upon release of today’s GDP update, Steve Liesman and his Wall Street economist pals spent 10 minutes bloviating about why the negative print should be completely ignored. The MSM cheerleaders like Liesman and his pals cannot see the handwriting on the wall because central bank bubble finance has essentially abolished the old rules of macro-economics. Someone should tell them that an economic deja vu is about to happen... all over again!

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"QE Doesn't Work... But We Can't Wait For More"

It is perhaps an emblematic description for our current bubble age; QE doesn’t work but “we” can’t wait for more. Maybe that is just the logical evolution of monetary magic, since QE was brought on with almost mythical properties that were going to cure a lot of financial and economic ills (Bernanke the former). Now resignation (Bernanke the latter) has left it with only the hope that it can just save us from the worst downside, even without any real expectation of a true upside in the economy. In other words, markets hope for the QE zombie, where the economy is kept from death by it, with full recognition now that it will never regain full life either.

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