Meltdown

Weekend Reading: Losing Faith?

"With President Trump embroiled in one entanglement after another and constrained by a deeply partisan legislature, the ability of the Administration to pass legislative agenda seems to be fading... along with investor 'faith' that they will."

Why There Will Be No 11th Hour Debt Ceiling Deal

"...over the past six months this Congress has been incapable of getting a doggone thing done. What makes you think they’ll somehow get their act together in just 12 days?"

"A Volatile Autumn": Buckled Up For Structured Criticality

Structured criticality is a property of complex systems in which small events may trigger larger events due to subtle interdependencies between elements. This often gives rise to a form of stratified chaos where the general behavior of the system can be modeled on one scale while smaller- and larger-scale behaviors remain unpredictable.

VIX Tumbles, S&P Futures, Global Stocks Rebound Sharply As Korea Fears Fade

Global stocks and S&P futures rebounded sharply on Monday as tensions over an imminent conflict with Pyongyang receded after U.S. officials played down the likelihood of a nuclear conflict with North Korea, recovering from fears of a U.S.-North Korea nuclear standoff drove them to the biggest weekly losses of 2017, while the dollar too rose off four-month lows it had hit against the yen.

Central Banks Are Hiding The True Price Of Risk

Central banks have put investor risk aversion to sleep: Under their guidance, financial markets are now betting on, and have high confidence in, monetary policy makers successfully fending off any new problems in the economic and financial system.

China's Minsky Moment Is Imminent

Everything you wanted to know about the looming bursting of the world's biggest credit bubble, but were afraid to ask...

A Tale Of Two Countries (Or How The Fed Enabled Corporate Kingpins To Scalp Billions)

"...capital markets are deeply and perhaps irreparably broken by the Fed’s massive falsification of financial asset prices... all this financial engineering has starved the real main street economic for capital investment - even as the cash flows shunted back to Wall Street have showered the fast money operators and gamblers with massive windfalls."

"It Won't Be Long Now" - David Stockman Warns "Amazon Is The New Tech Crash"

"The Amazon business model is fatally flawed. It’s only a matter of the precise catalyst that will trigger the realization in the casino that this is another case of the proverbial naked emperor... I do not think AMZN is a freakish outlier. It’s actually the lens through which the entire stock market should be viewed because the whole enchilada is now in the grips of a pure mania."

Rabobank:"Is This The Real Life? Is This Just Fantasy?"

"The biggest question now must surely be if this latest White House firing is indicative of an administration in total meltdown, in which case the USD seems unlikely to avoid being swept along with it. Or could the new Chief of Staff bring some much-needed discipline and order to the Trump administration?"