Is Apple going to produce more electric vehicles ten years from now than BMW?
CEOs, Wall Street are furiously making hay while the storm moves in.
- Dollar at three-month high as payrolls paralysis sets in (Reuters)
- 5 Things to Watch in the October Jobs Report (WSJ)
- China to Lift Ban on IPOs (WSJ)
- ArcelorMittal Is Latest Victim of China's Steel-Export Glut (BBG)
- 'Hope to see you again': China warship to U.S. destroyer after South China Sea patrol (Reuters)
- Giants Tighten Grip on Internet Economy (WSJ)
- Questions Surround Valeant CEO Pearson (WSJ)
Subprime Auto Goes Full-Retard: Lender Sells $154 Million ABS Deal Backed By Loans To Borrowers With No CreditSubmitted by Tyler Durden on 11/03/2015 15:36 -0500
Remember Skopos Financial, the US subprime auto lender run by Santander Consumer veterans? Well, in a testament to just how desperate America is to perpetuate the US auto market "renaissance," the company just sold $154 millon worth of paper to investors partially backed by loans to borrowers with no credit score.
Butler believes that since the end of the Bretton Woods monetary system, there is a strong case for having higher allocations to physical gold. He warns of the risk inherent in gold ETFs due to the levels of legal indemnifications.
Already, the big banks (the ones with the closest ties to the Federal Reserve) have begun turning away deposits OR charging them.
- Global Stock Markets Edge Higher Though Global Growth Concerns Weigh (WSJ)
- Nikkei up 1.9% because Japan export growth slows sharply, raising fears of recession (Reuters)
- Saudis Risk Draining Financial Assets in 5 Years, IMF Says (BBG)
- Syria's Assad flies to Moscow to thank Russia's Putin for air strikes (Reuters)
- US Prosecutor Preet Bharara Probing Daily Fantasy-Sports Business (WSJ)
- Syrian army denies Russian ground forces fighting in Syria (Reuters)
Back in February, we noted that NIRP had officially arrived in the US as JP Morgan announced it was preparing to charge some large institutional customers for deposits. This represented a kind of de facto (if not yet de jure) NIRP. Now, a combination of pinched margins and new regulations has led some of the largest financial institutions in the US to penalize corporate and institutional deposits on the way to instituting what amounts to a stealth version of negative interest rates.
Since we first exposed (and explained) the Black-sh Swan-link nature of the options market's Skew Index, the mainstream media has lept to various conclusions (from ignore it, like everything else, to 'wow'). However, what is crucial to comprehend is that the soaring Skew is occurring at the same time as a collapsing VIX. However, what we have seen over the last two days is somewhat unprecedented - VIX has continued to collapse into option expiration (and we know the pattern that occurs after opex) as SKEW has soared to new all-time record highs.
Audio - There were some very interesting insights and we believe high net worth and institutional investors and indeed all listeners will get useful information with which to protect and grow their wealth.
You’re doing yourself a disservice if you don't have a basic working knowledge of what, say, a volatility surface means. We're not saying that we all have to become volatility traders to survive in the market jungle today, any more than we all have to become game theorists to avoid being the sucker at the Fed’s communication policy table. And if you want to remove yourself as much as possible from the machines, then find a niche in the public markets where dark strategies have little sway. Muni bonds, say, or MLPs. The machines will find you eventually, but for now you’re safe. But if you’re a traditional investor whose sandbox includes big markets like the S&P 500, then you’re only disadvantaging yourself by ignoring this stuff. Ignorance is not bliss...
The “smart money” and by that we mean the more informed, aware and prudent investors and institutions internationally continue to have an allocation to gold and or add to existing allocations. The less informed continue to not understand or disparage gold and focus almost solely on gold’s short term price action rather than gold’s long term attributes as a hedging instrument and a safe haven asset.
With VIX collapsing 10 days straight (for the first time since October 2010), one might be forgiven for thinking "everything is awesome." However, as always, the real news is in the nuance that the mainstream often misses. As VIX has plunged (complacency about 'normal' risk), Skew (which measures extreme tail risk) has exploded to its highest ever...
- Playboy to Drop Nudity as Internet Fills Demand (NYT)
- Stock futures fall on weak China trade data (Reuters)
- Any Hall is down 20% YTD (WSJ)
- Global Stocks Slide With Metals After Chinese Imports Tumble (BBG)
- Clinton's tack to the left to be on display in Democratic debate (Reuters)
- Switzerland Said to Impose 5% Leverage Ratio on Big Banks (BBG)
- AB InBev, SABMiller brew up $100 billion deal (Reuters)
This is the story of a veteran NYSE specialist who noticed manipulation in the NYSE market open Imbalance, loudly complained to the NYSE, was ignored, then decided to profit from said manipulation himself... and got busted. And that's where the story begins...