As one sharp Florida realtor explained..."The problem is that investors are no longer buying, and now they're going to be looking to sell..."
It's looking increasingly likely that third time's the charm: this set of bubbles is the last one central banks can blow. And when markets free-fall and don't reflate into new bubbles, pension funds will expire, as they were fated to do the day central banks chose zero interest rates forever as their cure for a broken economic model.
Ever since last September, when we explained that as a result of China's crackdown on capital controls, the one clear winner (in addition to Vancouver real estate) would be bitcoin, the digital currency has more than doubled in dollar terms, rising from $230 and surging as high as $500 a few months later. Overnight bitcoin, which had traded in a stable range with little of its characteristic volatility in recent months, made its latest breakout, surging nearly 5% from a $440-level, to a fresh 2016 high of $480, and has since retracted the move modestly, trading at $475 at last check.
With verious Fed presidents having whipping up the market into a hawkish frenzy in the past two weeks, leading to a dramatic repricing in summer rate hike odds with expectations for a July rate hike now over 50%, many can be "disappointed" by Yellen's speech today, at least according to Jeff Gundlach who said Yellen appears to be more cautious on raising interest rates and he expects her comments to be dovish again on Friday, when she is scheduled to speak at an event in Harvard-Radcliffe.
Cable has strengthened notably in the last week or so as Cameron and Osborne unleashed phase 2 of "project fear" and 'some' Brexit polls suggested market fears of a 'leave' decision were overblown. However, the broad polls still show the decision is too close to call, which is why the news from Ladbrokes - Britain's largest bookmaker - that they have seen a sudden surge in Brexit bets in the last few days. Interestingly, sterling has started to leak lower today...
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.
A buck’s a buck, or is it?!
Two days after Donald Trump released a clip in which he hinted at Bill Clinton's sexual transgressions by featuring two women - Kathleen Willey and Juanita Broaddrick - who have made rape accusations against the former president, and then promptly escalated his attacks on the Clintons in an interview with WaPo in which Trump called the circumstances of Vincent Foster’s death "very fishy", Trump accidentally revealed what his next attack on Hillary will be.
While markets are myopically co-moving to the siren songs of Fed hawks and doves, deteriorating fundamentals are becoming harder to ignore. Like wildfires, it’s hard to predict how quickly and where market panic will spread to next. However, the chain-reaction of peak consumer credit growth, softening retail sales, and tightening credit conditions does not bode well for REITs going forward.
A real-estate firm that has been a favored investment of Sen. Bob Corker, R-Tenn. is under investigation by federal law-enforcement officials for alleged accounting fraud. The FBI and the SEC are focusing their examination of CBL & Associates Properties on whether officials at the Chattanooga, Tenn., company falsified information on financial statements to banks when applying for financing arrangements. The FBI and SEC are also inquiring into the trades of Bob Corker who has made millions of dollars in profits trading the company’s stock in recent years
- Oil nudges $50 a barrel as investors bet on shrinking overhang (Reuters)
- From hinterland to wonderland: China's 'teapot' refinery boomtowns (Reuters)
- Peter Thiel Has Been Secretly Funding Hulk Hogan's Lawsuits Against Gawker (Forbes)
- China Wants to Set Prices for the World's Commodities (BBG)
- Big Banks Ladle On the Risk (WSJ)
- China Said to Plan Asking U.S. on Timing of Fed Rate Hike (BBG)
Just hours after Donald Trump released a clip in which the presumptive Republican presidential candidate hinted at Bill Clinton's sexual transgressions which featured audio of two women - Kathleen Willey and Juanita Broaddrick - who have made rape accusations against Bill Clinton, Trump escalated his attack on Hillary and Bill Clinton in an interview with WaPo in which Trump called the circumstances of Vincent Foster’s death "very fishy."
Blackrock Inc., has written a note about gold in which it suggests that this is the “perfect time and place” for gold due to “low and even negative yields, slow growth and potential signs of rising inflation ... ”