ratings

Frontrunning: October 25

  • Hilsenrath: Fed’s Task Ahead: How Best to Signal Year-End Rate Move (WSJ)
  • Fed Inclined to Raise Rates If Next President Pumps Up Budget (BBG)
  • World stocks, commodities climb as economic confidence lifts (Reuters)
  • Ahead of earnings: Apple Boosted by IPhone 7 Demand, Slowing Pace of Sales Decline (BBG)
  • Campaigns Brace for Election-Day Legal Battles (WSJ)

America's "Two-Party System" Has Jumped The Shark

The simple fact is the Two-Party System simply cannot cope with the complex, issue-based reality of America and the world in the 21st Century. It’s old programming that worked when the world was over-simplified by the Cold War into Democracy versus Communism, Freedom versus Totalitarianism, and the Self-Appointed Good versus the Evil Empire. Maybe that’s why the duopoly seems so hot for a new Cold War. The only way their binary system works is if there is a common enemy to turn into America’s common denominator.

Frontrunning: October 24

  • The CEO Behind AT&T’s Huge Time Warner Deal (BBG)
  • AT&T-Time Warner deal sparks calls for scrutiny in Washington (Reuters)
  • Wall Street’s $40 Billion AT&T Pledge Offers Fees and Risks (BBG)
  • Bernie Sanders: Obama Administration “Should Kill” The AT&T-Time Warner Deal (Deadline)
  • Oil prices under pressure as Iraq resists joining output cut (Reuters)

Weekend Reading: Time To Be A Contrarian?

Currently, there is little argument the “bullish trend” remains intact. As such the mainstream analysis, if you can actually call it that, continues to the tout the inherent benefits of low cost, passive indexing and the ultimate “chase for yield.” However, it is here the real danger lies. Much of the monetary flows into passive indexes is actually NOT PASSIVE. When the eventual reversion comes, and it will, the pain inflicted on individuals, as is always the case, will turn “passive indexers” in “panicked sellers.”

European Taxpayers Now On The Hook For Junk Debt As ECB Bond-Buying Debacle Builds

"Picking winners" was never a good idea for policymakers - no matter what the economics textbooks say - and now the 'market' has given the ECB a big headache. Draghi's corporate-bond-buying scheme has backfired as the European Central Bank finds itself holding junk bonds in its so-called 'stimulus' plan after K+S AG was downgraded by S&P (sending its price plunging).

Never Before Seen Secret Memo On AIG Bailout From Fed's Tarullo To Obama Revealed In Podesta Emails

"...we surely do not want to unnerve markets by saying anything that would suggest your Treasury Department would undo this modification after January 20.  However, the combination of the questionable terms of the original Fed lending and failure to increase the effective stake of taxpayers as part of this deal means that we should avoid saying anything that would identify us with this move."

Frontrunning: October 19

  • China third quarter GDP grows 6.7 percent as expected as construction booms, debt rises (Reuters)
  • China Growing at 6.7% Opens Window to Deliver Debt-Curb Vow (BBG)
  • U.S. expects Islamic State to wield chemical weapons in Mosul fight (Reuters)
  • Iraq urges U.S.-led coalition to prevent Islamic State escape to Syria (Reuters)
  • Fox national poll shows Clinton leading by six points (Hill)

Saudi Arabia Launches Sale Of 5, 10 And 30 Year Bonds, Seeks To Raise Up To $15 Billion

The most anticipated bond sale of the year has officially started, with Saudi Arabia seeking to sell between $10 and $15 billion in three tranches, a 5Y, 10Y and 30Y offering. Pricing is expected to take place tomorrow, Oct. 19; with the books set to close at 5pm in NYT on Tuesday October 15.  Tentative pricing will be as follows: