Reality

The Greater Depression - Part 2: "Cinderella Man"

A victory by Hillary would be a victory for Wall Street, billionaire oligarchs, neo-con warmongers, propaganda media outlets, and corporate cronyism. A Trump victory would boost the morale of a middle class that has been abused, denigrated, belittled, ignored, and taken advantage of by the ruling class for decades. The hopes and dreams of millions are riding on a victory by the anti-Cinderella man. His popularity rides on a sea of rightful resentment, anger, and fury at how the average American has been screwed by the ruling class (both parties) for decades.

Bank of America "Thinks The Unthinkable"

"The unthinkable: BB yields about to become negative. Such has been Draghi’s influence across the whole credit market that we are close to seeing our first negative yielding BB-rated bond. But if debt costs for speculative grade companies become “inverted”, then the economics of LBOs will be transformed, and the quality of the assets they are buying will become secondary. We see a growing risk that another private equity cycle emerges in Europe."

"Fragility Is Everywhere" - The Labor Day Lull Before The 'Fraying Culture' Storm

In this presidential election year especially, Labor Day serves as a sort of collective deep breath before the plunge into a season of political anguish. The number of potential voters disgusted with the choice between two clueless monsters of egotism must be epic. If WalMart held a sale on bullshit filters, they might stand a chance of turning a Q3 profit. Otherwise, expect economic performance to be increasingly frightening even if The New York Times and CNN continue to spin out tales of unicorns jumping rainbows.

The Fed Fiddles While Free Markets Burn

"...it is unmistakable via Mr. Fischer’s latest remarks that both the Fed. and others are quite content at bowing their monetary fiddles... All while free market capitalism burns at the altar of monetary imperialism."

Fed Vice-Chairman Admits Fed Sponsors Wealth Inequality

Federal Reserve Vice-Chairman Stanley Fischer made a couple of controversial statements this week regarding negative interest rates. Fisher stated negative rates “seem to work” while admitting they are bad for savers but they “typically they go along with quite decent equity prices.” There are two problems in play. The first is an explicit admission that the Fed sponsors wealth inequality. The second problem is Fisher does not understand how markets even work.

Negative Rates & The War On Cash, Part 1: "There Is Nowhere To Go But Down"

As momentum builds in the developing deflationary spiral, we are seeing increasingly desperate measures to keep the global credit ponzi scheme from its inevitable conclusion. Credit bubbles are dynamic - they must grow continually or implode - hence they require ever more money to be lent into existence. As the peak of a credit bubble is reached, all these necessary factors first become problematic and then cease to be available at all. Past a certain point, there are hard limits to financial expansions, and the global economy is set to hit one imminently.

The High Yield Bond Market Has Never Been This Decoupled From Reality

...the revelation of a default event exposes the vast gap between 'real' asset values (upon liquidation or bankruptcy) and the artificially supported 'prices' seen in bond markets. In the 30 year life of the so-called junk bond market, the chasm between reality and central-planner-created markets has never been wider.