My conclusion is that the SNB deliberately screwed the market, and in the process shot itself in the foot for 30-50 billion dollars. What were they thinking?
Once again the mainstream media peddled the spoon-fed propaganda that world leaders "led the march" to honor the victims of the Paris shootings last week. Glorious photo-ops of Merkel, Hollande, Poroshenko, David Cameron (oh, and not Barack Obama) were smeared across front pages hailing the "unity in outrage." However, as appears to be the case in so many 'events' in the new normal managed thinking in which we live, The Independent reports, French TV has exposed the reality of the 'photo-op' seen-around-the-world: the 'dignitaries' were not in fact "at" the Paris rallies but had the photo taken on an empty guarded side street...
A promise is a promise is a promise... especially if it's from a Central Bank. That was true and undeniable for decades of BTFD 'equity market put'-provision by the world's central planners... until Wednesday. But now, on the heels of the Swiss National Bank's 'victory' against the vicious cycle of currency wars and monetary debauchment, The Asian Nikkei Review reports stirrings in the Bank of Japan as one official warns, "we have caused tremendous trouble for the financial industry," and many others growing anxious about continuing its massive purchases of government bonds (confronted with the program's negative side effects) and pressure from the financial industry is strengthening by the day "to scale back monetary easing soon."
Next week, I'm tossing up the notion that the market will run up until Mario delivers his large pepperoni pizza pie on Thursday....... Hold the Greek olives, Italian sausage and Spanish onions!
At this point the current financial system was irrevocably broken. We simply had yet to feel it.
The ECB's 4 QE Scenarios, And Why CS Thinks Waking From The "QE Dream" May Be The Worst Possible OutcomeSubmitted by Tyler Durden on 01/17/2015 14:30 -0500
Despite various media reports over the past 24 hours about risk-sharing and sovereign security exclusion (i.e., that of Greek Treasurys), as well as speculation that despite it being priced in more than 100%, the ECB may yet again delay the actual announcement especially with what watershed Greek elections following just days after the ECB announcement, the question remains just what format will European QE take. Here, courtesy of Credit Suisse - a bank which was pounded in the past 2 days following the record surge in the CHF - is a preview of the 4 most likely ECB scenarios, as well as a glimpse at what may be the worst possible outcome for Europe: QE itself!
One wonders just how disappointed Americans are going to be when the hard-data reality hits and the almost record high hopes of rising incomes is dashed on the shores of "unambiguously bad" low oil prices....
It has been a rough start to a new year as all of the gains following the end of the Federal Reserve's flagship "QE-3" campaign have been erased. There is currently little concern by the majority of Wall Street analysts that anything is currently wrong with the markets. While earnings estimates are rapidly being guided down, it is likely only a temporary issue due to plunging oil prices. However, not to worry, the economy is set to continue its upward growth trajectory. Maybe that is the case. But as investors we should always have a watchful eye on the things that could possibly go wrong that could lead to a rapid decline in investment capital.
Remember, years ago, when the markets were a mechanism for honest price discovery and a gathering place for buyers and sellers to participate in open, unvarnished capitalism?
The majority of the jobs "created" since the financial crisis have been lower wage paying jobs in retail, healthcare and other service sectors of the economy. Conversely, the jobs created within the energy space are some of the highest wage paying opportunities available in engineering, technology, accounting, legal, etc. In fact, each job created in energy related areas has had a "ripple effect" of creating 2.8 jobs elsewhere in the economy from piping to coatings, trucking and transportation, restaurants and retail. Simply put, lower oil and gasoline prices may have a bigger detraction on the economy that the "savings" provided to consumers.
Another day, another Kermit kicks the can. .
The French are disarmed and utterly socialized. Millions of them march in Paris in a display of solidarity, but solidarity behind what solution? Even more government; the same government that created the problem in the first place? Even more centralization? The globalization of despotic security policies? The French have dug their grave, and now they are going to have to lie down in it. Americans do not have to follow the same path. We do not need more government. We do not need more surveillance, more police militarization or more troops on the streets. Make no mistake, many illusions are about to be shattered. You can be caught up in the storm as a helpless spectator and victim or you can become a barrier.
For all the hype about jobs and the booming (GDP) economy, the major portion of the retailer calendar around Christmas was a total bust. In many ways it was worse than last year, which emphasizes simply how the business “cycle” as it was understood in textbook economics no longer applies. In other words, the dichotomy between growing pessimism in credit/funding and economists is due to the continued failure of the economy to produce what economists expect.