Pizzaflation is creeping through the nation. Inflation is slow, and subtle, and making our favorite things like Pizza unaffordable. Pizzaflation explains the deterioration of the US Dollar in something we all love; Pizza.
"...to be blunt, given the aforementioned fundamental risks and the poor risk/return skew, history is clearly not in favor of those who remain long equities banking on the Fed to continue to levitate valuations and prices with limited tools and faulty narratives."
As we inch closer and closer to November 8th, one thing has become increasingly clear: This election will be viewed by voters as a referendum on the status quo itself. While it’ll definitely be a referendum on Obama specifically, it’s much bigger than that. It’ll be about whether the American people want to continue along the path we’ve been on for decades, or if they’re willing to try something entirely different.
"These linear thinkers can’t understand why their playbook of lies, misinformation, pointless social justice issues and a myriad of other inane distractions aren’t working this time. They fail to acknowledge that history is cyclical and we’ve entered the phase when generational cohorts are aligned for dramatic sweeping change. The data is there for all to see, but those benefiting from the current perverted paradigm will not be swept aside without a bloody fight."
Saudi Arabia's government has decided to curb to some financial perks for public sector employees, according to a live broadcast of the cabinet's weekly meeting. "The cabinet has decided to stop and cancel some bonuses and financial benefits," read a line of text on Ekhbariya TV, as a minister read to assembled ministers and royals, including King Salman, a list of cuts to be made in various grades in the civil service.
Two weeks after European and Japanese banks threatened mutiny against new banking capital requirements set forth by the Basel Committee, Bloomberg reports that Wall Street would have to come up with billions of dollars in additional capital in a proposed revamp of the Fed’s stress tests. US bank stocks are sliding on the news, falling back to the reality of lower and flatter yield curves as well as systemic threats from Deutsche Bank.
"When it's important, you have to lie," is the now well-known mantra from European leaders when the crisis hit. So when a German politician proclaims "you can’t compare Deutsche Bank with Lehman. The bank is in a position to get out of this situation on its own," it's time to panic. Just a week after the 8th anniversary of Lehman's collapse, the multi-trillion dollar derivative book of Deutsche Bank dwarfs that of Lehman... and the credit markets are starting to wake up again.
Citi said that its "base case is for a Clinton victory and mostly continuity in policies, which would leave U.S. and global growth expectations relatively unchanged,” while describing the U.S. contest as “increasingly bizarre.” Bizarre or not, earlier this morning Morgan Stanley, whose base case is still a Clinton victory has presented several "contingency planning" scenarios in case Trump does win.
After 10 straight weeks of increasingly bullish speculative positioning ('longer' stock futures and 'shorter' VIX futures), the last 2 weeks have seen short VIX bets plunge at the fastest rate since pre-Brexit and the Aug 2015 crash. At the same time as this surge to hedging, the day since The Fed's utterly farcical fold have seen bond volatility crash to its lowest in two years.
China’s smaller banks have never been more reliant on each other for funding, prompting rating companies to warn of contagion risks in any crisis. "Contagion risks are definitely rising," according to S&P: "The pace of the development is concerning. If this isn’t stopped in time, the central bank will lose some control and flexibility of its monetary policy."
Two short weeks ago, we exposed the gaping difference between Amazon reader reviews of Hillary Clinton's "Stronger Together" book (14% 5-Stars) and Donald Trump's "Great Again" book (74% 5-Stars) as The New York Times describedClinton's propaganda as a "flop." So, as with everything else in this 'new normal rigged' world, something had to be done and WaPo-owner Jeff Bezos' Amazon reviews appear to have been 'tweaked' - more than doubling Hillary's top reviews.