New York Stock Exchange

Government By Goldman

"...now Cohn’s in charge of the economy and talking about eliminating financial reform and basically putting the country back to where it was in 2005, as if 2008 didn’t happen. I’ve started the countdown clock to the next financial crash, which will make the last one look mild."

Frontrunning: September 12

  • Trump Plans Aggressive Road Show to Sell Tax Overhaul (BBG)
  • Trump to weigh more aggressive U.S. strategy on Iran (Reuters)
  • Florida Turns to Recovery as Irma Moves North (WSJ)
  • What to Expect at Apple’s Biggest Event in Years (BBG)
  • A $150 Billion Misfire: How Forecasters Got Irma Damage So Wrong (BBG)

Economists Are The New Astrologers

"...because economics models are mostly useless and cannot predict the future with any sort of certainty, then centrally directing an economy would be effectively like flying blind... If economics is unable to provide bureaucrats with the ability to effectively guide and control an economy, the best alternative would be to turn it back over the market."

Volatility Makes A Comeback

"The strategy of selling volatility has been so profitable that promoters tout it to investors as a source of 'steady, low-risk income'... Nothing could be further from the truth..."

23 Of The Last 24 Times, This Prompted A Market Plunge

While FundStrat's Tom Lee has not been banned from ESPN, he may well be banished from mainstream business media as not only is he bullish Bitcoin, and the S&P's most-bearish strategist (target 2,275 year-end), he is now calling for a 5% correction in stocks as market breadth collapses...

David Stockman On America's Goldman Sachs Regency

"Bannon on the outside will likely prove to be the Goldman Regency’s worst nightmare. There is not a chance that while he is back at Breitbart he’ll tolerate a “capitulation to the left” deal for even a New York minute."

Herbalife Surges After Announcing $600MM Stock Buyback, Failed LBO Transaction

Herbalife announced that while the company had tried and failed to pursue an LBO, it has instead entered into a pact with Carl Icahn and unveiled a "self-tender" offer according to which it would pursue a whopping $600 million buyback, equivalent to about 10% of its market cap, purchasing shares at a price between $60 and $68

"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.

Frontrunning: August 14

  • Korea tensions ease slightly as U.S. officials play down war risks (Reuters)
  • Pence Plays Down Trump Threat on Venezuela (WSJ)
  • Trump Pressed to Reject White Nationalist Groups (WSJ)
  • Charlottesville, and the World, Take Stock of Violent Episode (NYT)
  • Car Attack Suspect Had Shown Troubling Behavior (NYT)

The Next Market Crash Will Not Be Televised

"In the end, just like 1987, 1998, and 2008, the taxpayer will end up holding the bag. They will never see the crash coming... and modern television will cover it much like they did in 2007 and 2008: After the financial nuclear bomb has already gone off."

How Many Gold Bars Do London Vaults Hold

This week for the first time - in the name of "transparency" - the London Bullion Market Association unveiled that as at 31 March, 2017 there were 7,449 tonnes of gold, or 596,000 gold bars, valued at $298 billion sotred in the vaults around London as well as $19 billion in silver. Here are the full details of what was unveiled.

Von Greyerz: "We Are Now In The Frightening Endgame"

"Stock investors are rejoicing about stock markets making new highs in many countries, totally oblivious of the risks or the reasons...The gullibility of people today is exacerbated by the power of the internet and social media."

Don't Be Fooled - The Federal Reserve Will Continue Rate Hikes Despite Crisis

"Perhaps investors should consider that they are being duped by central bank ploys, and that they are useful idiots in a game designed to keep the public under control with fraudulent markets until the Fed is ready to pull the plug. When the crash takes place, the Fed will find a way to remove itself from any blame."

The Crash Of 1929: "Somewhere, Deep Down, They Knew The Party Was Over"

"...people believed that everything was going to be great always, always...It was this nature of mass illusion. Prices were going up, people bought... I would say that practically all the financial journals were on the take... They knew the game was rigged, but maybe next time, they could beat the system...Everything was not fine that spring with the American economy."