Meltdown

Goldman Finds That China's Debt Is Far Greater Than Anyone Thought

"The trend of China’s leverage has probably deteriorated faster than we previously thought... Compared to our previous estimates, the experience in 2015 suggests that the economy’s dependence on credit has deepened significantly and that it likely needs sizeable flow of credit on a persistent basis to maintain a stable level of growth...Such a scale of deterioration certainly increases our concerns about China’s underlying credit problems and sustainability risk. The possibility that there is such a large amount of shadow lending going on in the system... underscores the lack of visibility on where potential financial stress points may lie and how a possible contagion may play out."

The Case For A Super Glass-Steagall

By embracing this kind of Super Glass-Steagall Trump would consolidate his base in the flyover zones and reel in some of the Bernie Sanders throng, too. The latter will never forgive Clinton for her Goldman Sachs speech whoring. And that’s to say nothing of her full-throated support for the 2008 bank bailouts and the Fed’s subsequent giant gifts of QE and ZIRP to the Wall Street gamblers.

8 Lessons That We Can Learn From The Economic Meltdown In Venezuela

We are watching an entire nation collapse right in front of our eyes. All of this is happening even though Venezuela has not been hit by a war, a major natural disaster, a terror attack, an EMP burst or any other type of significant “black swan” event. When debt spirals out of control, currency manipulation goes too far and government interference reaches ridiculous extremes, this is what can happen to an economy. The following are 8 lessons that we can learn from the epic economic meltdown in Venezuela...

"What If?"

Here are five market counterfactuals – “What ifs” – all anchored in a prior reality: where the world was 155 days ago, at the end of 2015; to both illustrate why large cap U.S. equities just closed near their highest levels of 2016 and consider the conventional wisdom about whether the current rally is sustainable.

How The "Rest" Of America Lives: Wanting For Work, Buried In Debt

The flyover zones of America are wanting for work and buried in debt. That’s the legacy of three decades of Washington/Wall Street Bubble Finance. The latter has exported jobs, crushed the purchasing power of main street wages and showered the bicoastal elites with the windfalls of financialization. In short, Wall Street loves financial repression because it inflates financial asset values and fuels debt-funded gambling in the casinos. But it’s the opposite of what’s needed in flyover America.

What A 'Carve-Up' - Economists Fake-Panic Over Brexit

Carve-up, n. “An act or instance of dishonestly prearranging the result of a competition.” Just two hours before it was barred from issuing any more fatuous propaganda about Brexit, the UK Treasury last week managed to surpass themselves...

Hedge Fund Billionaire Slams Democracy, Says The "Tyranny Of The Majority Is An Unhealthy Development"

In his latest letter to investors, OakTree Capital's Howard Marks goes political (slamming Trump's tariffs and Bernie's minimum wage machinations), shedding some blinding light on the economic reality of America, the dismal failure (and increasing impotence) of central bankers, and the ongoing "tryanny of the majority" warning that if everyone wants to tax-the-rich, soon there will be no rich to tax. As he concludes, short-term fixes simply cannot create wealth out of thin air (see Venezuela), as Churchill once said "for a nation to try to tax [or stimulate or devalue] itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."

Losing Ground In Flyover America

The Fed’s paint-by-the-numbers Keynesian incrementalism leaves it blind to the underlying rot in the US economy and to drastically over-estimate its capacity to maintain a stable growth equilibrium. In fact, corporate America is being strip-mined by Fed-fueled financial engineering and flyover America is sinking irretrievably into debt, dependency and shrinking living standards.

Warning Signs Everywhere

You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.”

We're In The Eye Of A Global Financial Hurricane

The global financial system is in the eye of an unprecedented hurricane. While central bankers are congratulating themselves on their god-like mastery of Nature, and secretly praying to the idols of the Keynesian Cargo Cult every night, the inevitable consequence of borrowing from the future, the obsession with "growth" at any cost and financialization /monetary stimulus, a.k.a. the rich get richer thanks to central banks is systemic collapse.

Democratic Party Warns Sanders Supporters May "Instigate Actual Violence" At Convention

While Hillary continues to remind everyone that her nomination is a "done deal", supporters of Bernie Sanders refuse to go quietly into the night.  Bernie's supporters put so much pressure on establishment Senator Barbara Boxer that she suffered an unfortunate meltdown in Nevada recently; they plan to do the same at the Democratic National Convention in July as well. As a result, the Nevada State Democratic Party has warned that the demonstrations may be used to instigate "actual violence."