In a shocking new report, Seymour Hersh reveals what he says was a covert operation run by the Joint Chiefs of Staff who sought to undermine the Obama administration and the CIA's goal of overthrowing the Assad regime in Syria. "If the American public saw the intelligence we were producing daily, at the most sensitive level, they would go ballistic."
Charles Gave: "I Cannot Remember A Time When Less Thinking Has Ever Been Done In The Financial Markets"Submitted by Tyler Durden on 12/10/2015 10:48 -0400
"What I find most hilarious is that some serious commentators have been pontificating at considerable length about what the market’s participants think. These days, some 70% of market orders are generated by computers, and many of the rest by indexers. And computers do not think... I cannot remember a time when less thinking has ever been done in the financial markets, which is why I find today’s financial markets infinitely boring."
- Charles Gave
Hitler said often that the bigger the lie, the easier it would be [for the masses] to believe. This is no where more true than Forex.
So how do you grow household wealth by $18 trillion in the face of these dismal real world trends? In a word, with a printing press. But what happened today is that Draghi showed he is out of tricks and Yellen confessed she is out of excuses. Yes, this sucker is going down. And this time all the misguided economics professors turned central bankers in the world will be powerless to reverse the plunge.
Update: PSPP extended to March 2017 "or beyond", regional debt added to QE-eligible asset pool
Having just let everyone down with a less-than-spectacular 10 bps depo rate cut, Mario Draghi will now try to appease a spoiled market by announcing an expansion and/or an extension of PSPP.
Long term risk has increased quite a bit, no matter which data points one happens to consider. Whether one looks at valuations, market internals, leverage or positioning, there are now more warning signs than ever. With the support provided by strong money supply growth declining as well, it becomes ever more likely that these potential dangers will actually materialize. It is an accident waiting to happen.
The decline in broad true money supply growth below the lower end of its 2 year long range is a major crack in the echo bubble edifice. Very likely it is the most important one yet.
There are seemingly always “good reasons” why troubles in a sector of the credit markets are supposed to be ignored – or so people are telling us, every single time. Some still recall how the developing problems in the sub-prime sector of the mortgage credit market were greeted by officials and countless market observers in the beginning in 2007. Meanwhile, the foundation of the economy continues to look rotten (the newest round of Fed surveys has begun with another bomb and other manufacturing-related data continue to disappoint as well). This isn’t going to end well, if history is any guide.
China can’t allow its industrial economy to sink without a fight. It will have to devalue the renminbi to try to get more market share for its exports. It still has 80% of its workers earning less than $10 a day. A lower renminbi will reduce real wages further and make China’s exports cheaper than ever. And then, what about the rest of the world? As the renminbi goes down, the dollar, yen, and euro will have to go up. Commodities – priced in dollars – will stay down. U.S. corporate profits will fall. The stock market “tape” will go down. Consumer prices, too, will remain low... or go negative. Deflation. Deflation. Deflation.
How We Got Here: The Fed Warned Itself In 1979, Then Spent Four Decades Intentionally Avoiding The TopicSubmitted by Tyler Durden on 10/30/2015 18:45 -0400
At least parts of the Fed all the way back in 1979 appreciated how Greenspan and Bernanke’s “global savings glut” was a joke. Rather than follow that inquiry to a useful line of policy, monetary officials instead just let it all go into the ether of, from their view, trivial history. But the true disaster lies not just in that intentional ignorance but rather how orthodox economists and policymakers were acutely aware there was “something” amiss about money especially by the 1990’s. Because these dots to connect were so close together the only reasonable conclusion for this discrepancy is ideology alone. Economists were so bent upon creating monetary “rules” by which to control the economy that they refused recognition of something so immense because it would disqualify their very effort.
No, Ben S. Bernanke will be someday remembered as the world’s most destructive battleship admiral. Not only was he fighting the last war, but his whole multi-trillion money printing campaign after September 15, 2008 was aimed at avoiding an historical Fed mistake that had never even happened!
Update: DRAGHI SAYS ECB DISCUSSED A FURTHER LOWERING OF DEPOSIT RATE
Draghi hints at December QE expansion, noting that "the degree of monetary policy accommodation will need to be re-examined at our December monetary policy meeting."
High stakes poker, winner takes all. Traders better have their trade plans ready: The next 3 weeks will likely determine whether we enter a lengthy bear market or whether bulls can use coming positive seasonality to avert a major market break one more time. As the following charts show, by the end of October we shall have confirmation one way or the other...
As part of the refugee crisis in which tens of thousands of innocent Syrians have been displaced and seeking European asylum, it was only a matter of time before one or more was "found" to be ISIS terrorists in order to perpetuate the fear and crisis narrative. A crisis which Brussels would never go to waste. That time has arrived after a report by German RTL and carried by NewObserver that "an ISIS terrorist posing as an "asylum seeker" has been arrested by German police in a “refugee” center in Stuttgart, and German customs officers have seized boxes containing Syrian passports being smuggled into Europe."
DRAGHI SAYS ISSUE SHARE LIMIT FOR QE RAISED TO 33% FROM 25%
ECB CUTS EURO-AREA INFLATION FORECASTS FOR 2015-2017
Mario Draghi holds court (on his birthday, no less) in a closely watched post-meeting presser as markets hope collapsing inflation expectations, heightened volatility, EM chaos, and China turmoil will be enough to force the ECB's hand.