"New York City just turned very quickly and more deeply than we expected. We had to join the concession party to close deals." Chief Operating Officer David Santee said during the Q1 earnings call, also adding that with the city accounting for 20% of the firm's revenue "if you can't achieve 3 or 4 percent rate growth here, then it's going to impact your bottom line."
The stock market is still viewed as if it were a discounting mechanism, a system where information is processed and priced to deliver insight about the fundamental state of liquidity, markets, and the economy. That view has always been debatable, but never more so than the whole of this century so far. What were share prices suggesting, fundamentally, in March 2000? Or October 2007?
Lars Schall explores the time-honored tradition of following the money in an attempt to discover answers to yet unresolved questions regarding the terrorist attacks of 9/11 in New York City. Mr. Schall is an independent investigative journalist that has produced many hard-hitting pieces regarding Central Bankers' manipulation of gold prices, and the failure of the US Central Bank (The Federal Reserve) to return all of Germany's gold reserves in the past.
This is the email that David Little, Chairman and CEO of Houston-based DXP Enterprises sent to his employees to explain why, "due to bank obligations and to continue a positive cash flow profile" the company has to freeze 401(k), why it is cutting pay in some cases as much as 60% and why many employees are about to lose their jobs in the middle of what is an "oil and gas depression." It is a disturbing read.
On the face of it, The FBI vs Apple - the feverish momentum of American technocracy accelerating into the cavernous Orwellian entrenchment of the surveillance state - boils down to a single locked and encrypted iPhone 5S, used by radical jihadist Syed Rizwan Farook. However, as we are learning, the FBI and the federal government have a far more comprehensive end-game in mind than merely bolstering the prosecution of this one case.
"Apple’s stance in the San Bernardino case may not be quite the principled defense that Cook claims it is... it may have as much to do with public relations as it does with warding off what Cook called “an unprecedented step which threatens the security of our customers.""
A multi-decade Credit Bubble is coming to an end. The past seven years has amounted to an incredible blow-off top and the ongoing worldwide collapse in financial stocks provides powerful support for the bursting global Bubble thesis. Few are yet willing to accept the harsh reality that the world has sunk back into crisis as mal-investment, over-investment and associated wealth destruction remain largely concealed so long as financial asset inflation persists. This is true as well for wealth redistribution. The unfolding adjustment process will deflate asset prices so as to converge more closely with deteriorating underlying economic fundamentals.
Several more slips like this one and the President’s strongest, most durable economy in the world could backslide into recession. On top of that, ‘the big one’ could rupture at any moment.
Just days after the potential for more capital injections for Fannie Mae and Freddie Mac (GSEs) are admitted to, we discover another 'scheme' to enrich the 'have-yachts' on the backs of the 'have-nots'.
Long gone is the illusion of: an elected body by the citizenry. Today, it’s become demonstrably self-evident the economy is run by an elected body – by the elected. And the consequences of this change is only now beginning to openly reverberate both in amplitude and frequency with every passing day.
Most just scoff at the notion that there has been a historic global Bubble, let alone that this Bubble has over recent months begun to burst. Talk of an EM and global crisis is viewed as wackoism. Except that the Federal Reserve clearly sees something pernicious in the world that requires shelving, after seven years, even the cutest little baby step move in the direction of policy normalization. The Fed and global central banks responded to the 2008 crisis with unprecedented measures. When the reflationary effects of these policies began to wane, the unfolding 2012 global crisis spurred desperate concerted do “whatever it takes” monetary stimulus. This phase has now largely run its course, and there is at this point little clarity as to what global central bankers might try next.
Ever since Simon Potter's 2012 arrival as head of The NYFed's trading desk, the manipulation of VIX (and thus its reflexive levered tail wagging the algo-driven dog of the indices) has been front-and-center day-after-day in the so-called US equity 'market'. While only fringe-blogs have noticed this in the past, now The FT admits that not only was recent volatility in markets exacerbated by VIX ETFs (thus confirming the tail-wagging-dog analogy), and further, the nature of the link between VIX ETFs and VIX Futures (rebalancing) enables frontrunning which serves to reinforce any trend into the close and thus manipulate the markets.
Land of the Fleeced ... Home of the Slave
What began with the passage of the USA Patriot Act in October 2001 has snowballed into the eradication of every vital safeguard against government overreach, corruption and abuse. Since then, we have been terrorized, traumatized, and acclimated to life in the American Surveillance State.
The volatile sell-off in global equities from Thursday August 20th through Tuesday August 24th, alongside a relatively muted diversification benefit from fixed income, led many risk parity funds to suffer a sudden and sharp drawdown over the four-day period. The performance drawdown and subsequent spike in the volatility of risk parity funds likely triggered a significant deleveraging in their assets.