Middle East
Will Mideast Allies Drag Us Into War?
Submitted by Tyler Durden on 01/05/2016 20:45 -0500Turkey’s shoot-down of a Russian jet and the Saudi execution of a revered Shiite cleric, who threatened no one in prison, should cause the United States to undertake a cost-benefit analysis of the alliances and war guarantees we have outstanding, many of them dating back half a century. Do all, do any, still serve U.S. vital national interests?
Saudi Arabia Or Iran? It's Time For Obama To Choose
Submitted by Tyler Durden on 01/05/2016 14:35 -0500"The United States should do everything possible to avoid choosing sides in an intensifying proxy war between the dominant Shiite and Sunni powers in the Middle East. Though history tells us we should tilt toward Saudi Arabia, our old ally, if we look toward the future, Iran is the more logical partner. The reasons are simple: Iran’s security interests are closer to ours than Saudi Arabia’s are."
Iran Unveils Second Underground "Missile City" In Further Humiliation For Obama
Submitted by Tyler Durden on 01/05/2016 11:41 -0500"We lack enough space in our stockpiles to house our missiles. Hundreds of long tunnels are full of missiles ready to fly to protect your integrity, independence and freedom. Those who threaten Iran with their military option on the table would better take a look at Iran’s ‘options under the table,’ namely the missile arsenals. Iran’s known military power is only the tip of the iceberg."
Stocks Resume Rout After Massive Chinese Intervention Fails To Lift Shanghai, Calm Traders
Submitted by Tyler Durden on 01/05/2016 06:52 -0500- Auto Sales
- Barclays
- Bond
- Borrowing Costs
- China
- Cleveland Fed
- Consumer Prices
- Copper
- CPI
- Crude
- Crude Oil
- Economic Calendar
- Equity Markets
- European Central Bank
- Federal Reserve
- fixed
- France
- Germany
- Global Economy
- headlines
- High Yield
- Iran
- Italy
- Jim Reid
- Middle East
- Nikkei
- Non-manufacturing ISM
- Prudential
- RANSquawk
- Real estate
- Recession
- Reuters
- Saudi Arabia
- Shenzhen
- Unemployment
- Volatility
- Yen
- Yuan
After yesterday's historic -6.9% rout in the Shanghai Composite, which saw the first new marketwide circuit breaker trading halt applied to Chinese stocks (on its first day of operation), many were wondering if the Chinese government would intervene in both the once again imploding stock market, as well as China's plunging and rapidly devaluing currency. And, after the SHCOMP opened down -3%, the government did not disappoint and promptly intervened in both the Yuan as well as the stock market, however with very mixed results which global stocks took a sign that the "national team" is no longer focused solely on stocks, and have resumed selling for a second consecutive day.
For Kyle Bass This Is "The Greatest Investment Opportunity Right Now"
Submitted by Tyler Durden on 01/04/2016 23:47 -0500"Given our views on credit contraction in Asia, and in China in particular, let's say they are going to go through a banking loss cycle like we went through during the Great Financial Crisis, there's one thing that is going to happen: China is going to have to dramatically devalue its currency."
This Just Became The Most Important Map In Geopolitics
Submitted by Tyler Durden on 01/04/2016 21:01 -0500Because the sectarian divide is set to become the key geopolitical issue in the weeks and months ahead, we thought it an opportune time to present the following map from Goldman which does a nice job of delineating the Sunni-Shiite split in the Mid-East.
Pretend To The Bitter End
Submitted by Tyler Durden on 01/04/2016 14:45 -0500- Afghanistan
- Bernie Sanders
- Bond
- BRICs
- China
- Corruption
- CRAP
- Detroit
- Donald Trump
- ETC
- Eurozone
- Federal Reserve
- Ford
- France
- Germany
- Global Economy
- Goldilocks
- Great Depression
- Greece
- High Yield
- Iran
- Iraq
- Israel
- Italy
- Japan
- KIM
- Middle East
- NASDAQ
- Nicolas Sarkozy
- Nomination
- North Korea
- Portugal
- Racketeering
- Reality
- recovery
- Saudi Arabia
- SWIFT
- Turkey
- Ukraine
There’s really one supreme element of this story that you must keep in view at all times: a society (i.e. an economy + a polity = a political economy) based on debt that will never be paid back is certain to crack up. Its institutions will stop functioning. Its business activities will seize up. Its leaders will be demoralized. Its denizens will act up and act out. Its wealth will evaporate. Given where we are in human history - the moment of techno-industrial over-reach - this crackup will not be easy to recover from. Things have gone too far in too many ways. The coming crackup will re-set the terms of civilized life to levels largely pre-techno-industrial. How far backward remains to be seen.
Byron Wien's Reveals Top 10 Predictions: Expects Stocks To Decline After Predicting 15% Rise In 2015
Submitted by Tyler Durden on 01/04/2016 12:53 -0500"The United States equity market has a down year. Stocks suffer from weak earnings, margin pressure (higher wages and no pricing power) and a price- earnings ratio contraction. Investors keeping large cash balances because of global instability is another reason for the disappointing performance."
This Time Isn't Different
Submitted by Tyler Durden on 01/04/2016 12:36 -0500The reckless herd has been in control for the last few years, but their recklessness is going to get them slaughtered. Corporate profits are plunging. Labor participation continues to fall. A global recession is in progress. The strong U.S. dollar is crushing exports and profits of international corporations. Real household income remains stagnant, while healthcare, rent, home prices, education, and a myriad of other daily living expenses relentlessly rises. The world is a powder keg, with tensions rising ever higher in the Middle East, Ukraine, Europe, and China. The lessons of history scream for caution at this moment in time, not recklessness. 2016 will be a year of reckoning for the reckless herd.
German Anger Boils Over: Shots Fired At German Refugee Home; One Asylum Seeker Hit
Submitted by Tyler Durden on 01/04/2016 12:01 -0500Early on Monday, gun shots were fired at a home for asylum seekers in western Germany and one resident was lightly injured, police said. The shots were fired at a window of the building in the town of Dreieich at around 2.30 a.m (0130 GMT), and one hit a 23-year-old asylum seeker who was sleeping, according to police in Offenbach, near Frankfurt. He was taken to a hospital, but was able to leave shortly afterward.
Saudi Default, Devaluation Odds Spike As Mid-East Careens Into Chaos
Submitted by Tyler Durden on 01/04/2016 11:31 -0500On the heels of a tumultuous weekend that saw Saudi Arabia cut diplomatic ties with Iran after the Saudi embassy was torched by protesters angry at the execution of a prominent Shiite cleric, CDS spreads for the kingdom have blown out to six-year wides while the implied odds of the riyal peg finally breaking are hitting new record highs.
Mid-East Melee: Sectarian Showdown Looms As Bahrain Cuts Ties With Iran, UAE Recalls Ambassador
Submitted by Tyler Durden on 01/04/2016 08:16 -0500What began with the execution of a prominent Shiite cleric in Saudi Arabia has devolved into a full blown sectarian showdown with Bahrain cutting diplomatic ties with Iran, the UAE recalling its ambassador, Sudan expelling the Iranian mission, and Iraqi Shiites attacking Sunni mosques. In short: tinder box meet spark.
Happy New Year: Global Stocks Crash After China Is Halted Limit Down In Worst Start To Year In History
Submitted by Tyler Durden on 01/04/2016 06:46 -0500- Australia
- Bond
- Carry Trade
- Chicago PMI
- China
- Circuit Breakers
- Copper
- Crude
- Crude Oil
- Equity Markets
- Eurozone
- Federal Reserve
- Ferrari
- fixed
- Flight to Safety
- Germany
- headlines
- High Yield
- India
- Initial Jobless Claims
- Iran
- Jim Reid
- KIM
- Markit
- Meltdown
- Middle East
- NASDAQ
- Nikkei
- RANSquawk
- Saudi Arabia
- Shenzhen
- Swiss Franc
- Yen
- Yuan
It all started off relatively well: oil and US equity futures were buoyant on hopes Iran and Saudi Arabia would break out in a bloody conflict any minute boosting the net worth of shareholders of the military industrial complex, and then, out of nowhere, like a depressed China in a bull shop, the "mainland" crashed the party and it all well south very, very quickly...
Crude Oil Opens Above $38, Takes Out 1-Week Highs
Submitted by Tyler Durden on 01/03/2016 18:04 -0500With hedge fund short positions near record highs and speculators at their least bullish in almost five years, oil prices have spurted higher in the early trading as the diplomatic gloves come off in The Middle East. Despite record levels of crude inventory around the world, WTI Crude is trading above $38, up over 3% from its $37.07 close on New Year's Eve. Algos ran the stops above last week's highs ($38.32) but for now prices are not as excited as many would have expected. Brent, for now, is outperforming and trade 45c rich to WTI.
ISIS: The 'Enemy' The US Created, Armed, & Funded
Submitted by Tyler Durden on 01/02/2016 22:00 -0500To delve into Daesh’s convoluted money trail, one must first explore its equally convoluted origins. And in both areas, the role of the U.S. and its allies can not be ignored.


