Reality

Hedge Funds No Longer Have Any Idea How To Trade This Market

While we sarcastically pointed out back in 2013 that with the Fed (and now every other central bank) as the market's Chief Risk Officer, there is no longer a need for anyone to do fundamental analysis, this has not only come true but the outcome is now is far worse. Because it confirms what we have said all along: not only is there no market left aside from what Central Banks decide will happen to "risk assets" on any given day, but the smart money- both hedge and mutual funds - have now completely lost the plot.

Hacked Emails Confirm NATO Push To Provoke, Escalate Conflict With Russia

Just two weeks ago, a huge scandal erupted within another 'union' as Germany slammed NATO for "warmongering" destroying the fictional narrative that 'innocent' NATO was merely reacting to evil Russian provocations. Now, as The Intercept's Zaid Jilani and Lee Fang expose, retired U.S. Air Force Gen. Philip Breedlove (yes an ironic name for a warmonger), until recently the supreme commander of NATO forces in Europe, plotted in private to overcome President Barack Obama’s reluctance to escalate military tensions with Russia over the war in Ukraine in 2014, according to apparently hacked emails from Breedlove’s Gmail account.

Brexit & The Crisis Of Capitalism

Thousands of commentaries have been issued about Brexit in the past week. Most discuss Brexit as the result of immigration issues, class war, political theater, a reaction against the European Union's bureaucratic power, sovereignty, etc. Other essays focus on the potential upsides or downsides of Brexit. What few if any commentators present is the idea that Brexit is a symptom of the Crisis of Capitalism...

Bob Janjuah Explains All That Is Wrong With The Financial System (And Remains Bearish)

"By dumping the responsibility for the heavy lifting for growth on central banks, we have ended up with asset bubbles, rampant speculation, lack of investment in productivity and in the real economy, significant levels of financial engineering to artificially boost earnings, and merely the (now failed) hope that “trickle down” still works. The outcome has been almost unprecedented levels of rising inequality in the global economy.  I suspect that it is this inequality that was behind a fair chunk of last week’s Brexit outcome and which has driven the rise of extremism across other important nations/blocs."

The Italian Job: "How Did Things Go So Bad?"

How on earth did things go so wrong? Could it be as simple as power-mongering and greed? To rob a line from the 2003 Italian Job, “There are two kinds of thieves in this world: The ones who steal to enrich their lives, and those who steal to define their lives.” Could it be that average working Italians, especially those who have been around for a good long while, feel as if they’ve been victims of both of the two kinds of theft, doubly wronged? “Basta!” their voices scream in defiance. Enough is enough!

ObamaScare Looms - Health Insurers Are Looking For A Taxpayer Bailout

Insurers helped cheerlead the creation of Obamacare, with plenty of encouragement – and pressure – from Democrats and the Obama administration. With the prospect of tens of millions of new customers forced into the market for comprehensive health-insurance plans, whether they needed that coverage or not, underwriters saw potential for a massive windfall of profits. Six years later, those dreams have failed to materialize. Now some insurers want taxpayers to provide them the profits to which they feel entitled - not through superior products and services, but through lawsuits.

Fighting Back? "Robo-Lawyer"-App Overturns 160,000 Parking Tickets

Got a bullshit parking ticket? Now you can appeal it in less than a minute. The new chatbot tool, DoNotPay, uses previously successful appeal letters to draw up a customized template, allowing users to avoid courts, legal fees, stress, and having to use a lawyer. So far, the free app has overturned 160,000 parking tickets in London and New York. With a success rate of 64%, DoNotPay has appealed $4 million in parking fines in just two cities in only nine months of operation.

JPM Head Quant Explains How The Algos Traded The Brexit Crash, And Why He Sees "Elevated Risk"

"As gamma exposure turned significantly short on Monday 6/27, it also contributed to a larger squeeze up on Tuesday and Wednesday (please note, these were even more prominent on 8/26 and 8/27 than this week)... We maintain the view that we have not yet seen the highs of VIX due to Brexit and  related risks. The points discussed above suggest equity markets face elevated risk in the days and weeks ahead."

Bad Earnings, Balance Sheet Rot, & The "Brelief" Rally

Despite mainstream economists hopes that somehow “this time will be different,” the ongoing massaging of economic data through seasonal adjustments to obtain better headlines did not translate into actual prosperity.  Of course, “reality” is a cruel mistress and despite ongoing hopes and overstatements, “fantasy” eventually gives way.

14 Signs The World Is On The Verge Of Generational Chaos

It is one of the great ironies of life that each generation believes its experiences are unique. The reality is that we have seen this movie before - with different actors, plot twists, and technological advancements. The basic plot seems to push along a hauntingly familiar path.