After the biggest two-day surge in oil in seven years, early in the overnight session both Brent and WTI continued their run for a third day, entering a bull market, 20% up from recent lows hit just last week (still 15% down on the year) when Saudi Arabia spoiled the momentum party after the world’s biggest crude exporter said it’s keeping up investments in energy projects while diesel consumption in China dropped for a fourth consecutive month, signaling an industrial slowdown. And thanks to the near record correlation between equities and oil, global stocks and US equity index futures initially rose only to slide following the Saudi comments.
"There is hope of more stimulus in March and potential for even more stimulus in Japan and China, so if we get concrete positive economic news the rebound could last into next week,” said John Plassard, senior equity- sales trader at Mirabaud Securities. “I told my clients to fasten their seatbelts and wait for better news, and this is finally happening."... "The turnaround in sentiment came amid signs central banks may be prepared to act after $7.8 trillion was erased from the value of global equities this year on China’s slowdown and oil’s crash."
- Islamic State launches militant assault on Indonesia's capital (Reuters)
- Three winners emerge in $1.6 billion Powerball jackpot (Reuters)
- European Stocks Tumble, Credit Markets Weaken on Growth Concern (BBG)
- Stocks and commodity currencies floored by new oil plunge (Reuters)
- China Bear Market Looms as PBOC Fails to Stop Flight to Safety (BBG)
- Anxious phone calls, tense moments before Iran's Supreme Leader okayed U.S. sailors' release (Reuters)
Rand Paul’s signature “Audit the Fed” legislation failed to garner the 60 votes needed in the Senate to move the measure forward. Of course, this is merely the latest in a never-ending series of banker victories, and a truly devastating blow against liberty, free markets, transparency and any hope for government by the people and for the people. Ensuring that light is never shined on the Fed’s shady, corrupt and unaccountable bailout activities has always been a key goal of the American oligarchy, and they succeeded once again.
See For Yourself ...
At the end of the day, the current preposterous $325 billion market cap has nothing to do with the business prospects of this firm or the considerable entrepreneurial prowess of its leader and his army of disrupters. It is more in the nature of financial rigor mortis - the final spasm of the robo-traders and the fast money crowd chasing one of the greatest bubbles still standing in the casino.
The $1.15 trillion spending bill passed by Congress last Friday and quickly signed by President Obama is just the latest triumph in the plutocratic management of politics that has accelerated since 9/11...proof that Washington can work. Mainstream media didn’t stop to ask: “Yes, but work for whom?” Instead, the anchors acted as amplifiers for official spin - repeating the mantra-of-the-hour that while this is not “a perfect bill,” it does a lot of good things. “But for whom? At what price?” went unasked. Secrecy today. Secrecy tomorrow. Secrecy forever. They are determined that we not know who owns them.
In an unexpected turn of events, the disappearance of not just synthetic but very physical dollars has hit one region much harder and much faster than we expected. Africa.
"...Should you continue your flagrant support of Saudi Arabia by way of foreign aid and weapons sales, you are no longer to be trusted to hold an elected position of influence. You should therefore resign, effective immediately. The question is: Is your allegiance to the people of the United States, or are you beholden to another kingdom?"
So what do you do when you’re a barbaric monarchy with a justice system remarkably similar to ISIS, but at the same time want to remain very close ally of the U.S. government? You create a sophisticated propaganda network, naturally.
Sometimes you just have to stand in awe at the level of corruption and incompetence in government.
- Belgian Police 'Arrest' Public Enemy No.1 (Sky News)
- France Widens Crackdown at Home as Bombs Rain on Islamic State (BBG)
- Putin Goes From G-20 Pariah to Player at Obama Turkey Talk (BBG)
- Paris Attacks: 150 Raids as France Goes to 'War With Terrorism' (NBC)
- 'Rocket Launcher Found' In French Police Raids (Sky)
- Geopolitical worries lift oil after Paris attacks, but glut weighs (Reuters)
- Japan's economy falls back into recession again (BBC)
- S&P 500 Futures Slip as Aussie Gains on Rate Outlook; Oil Rises (BBG)
- Xi Says China Needs at Least 6.5% Growth in Next Five Years (BBG)
- Ben Carson Vaults to Lead in Latest Journal/NBC Poll (WSJ)
- World's Biggest Banks Still Not `Truly Resolvable,' FSB Says (BBG)
- Keystone XL's builder faced darkening prospects (Reuters)
- Merkel Says Germany Must Step Up World Role in Refugee Crisis (BBG)
Financial engineering scams like Tyco and Valeant would never happen in an honest free market. Short sellers would shut them down long before they reach egregious levels of over-valuation; and the cost of honest downside market insurance (i.e. S&P 500 puts) and market driven carry cost would dramatically reduce the profitability of speculation and the amount of punters and capital in the casino. In today’s broken markets and corrupt regime of central bank driven crony capitalism, however, bubbles inflate in individual securities, as well as in broad sectors and the market as a whole, until they reach egregious, self-correcting extremes. Then they violently implode, creating immense waves of collateral damage in the process. Perhaps then the American people will learn that Yellen & Co have actually been in the un-wealth effects business for way too long.