recovery

Paul Singer Blames The Fed For "Enabling" Income Inequality

The so-called economic recovery that America has experienced in recent years is "unfair" and "distorted" according to Elliott Management's Paul Singer. Speaking at The DealBook Conference in New York, Singer warned that the recent 'great' jobs data is "part of the distrortion" that he has so vociferously ascribed (having previously noted that he "does not think the current optimism is warranted.") But when asked if the Fed should be blamed for income inequality in America, Singer exclaimed "Yes, they are the enablers."

Why Is The US Treasury Quietly Ordering "Surival Kits" For US Bankers?

The Department of Treasury is spending $200,000 on survival kits for all of its employees who oversee the federal banking system, according to a new solicitation. As FreeBeacon reports, survival kits will be delivered to every major bank in the United States and includes a solar blanket, food bar, water-purification tablets, and dust mask (among other things). The question, obviously, is just what do they know that the rest of us don't?

Dead-Cat-Bounce Done As Dow Dumps 200 Points; Oil, USDJPY, & Bond Yields Plunging

All of yesterday's v-shaped recovery gains off the lows are gone as the S&P tests new lows and the Dow is down over 200 points. Treasury yields are back at the mid-October Bullard lows - due for lowest close of the year. Oil has collapsed to a $60 handle (now down opver 8% on the week), as Energy stocks have crashed, giving up all of yesterday's bounce agains. HY credit is blowing wider as HY Energy breaks above 930bps!! USDJPY is tumbling. VIX is up at 17.5. S&P 500 is at one-month lows.

The American Miracle Idea Of Energy Independence Is Crumbling

The American miracle idea of energy independence is fully reliant on a shale patch that went over $100 billion deeper into debt every year for years running just to produce that not-so-miracle. Take away 40%+ of what revenue it did take in, and there is no independence left. All that’s left is fracking fluids in your drinking water, and a few trillion in debt that the Big Kahuna lenders will seek to unload upon the real economy.

The Treasury's Worst-Case Scenario: Over $3.3 Trillion In Student Loans In A Decade

"... If the unemployment rate were to edge up after reaching a trough in two years and the gap between U-6 and unemployment remains as wide as it is today – in excess of historical norms – the size of the program would be expected to reach roughly $3.3 trillion in 2024, $1.7 trillion more than in the base case." - TBAC

No Time Like The Present

At the latest ECB press conference Draghi said that. “The monetary policy team had this week discussed buying all assets except gold”; qualifying a claim by fellow member Yves Mersch two weeks ago that gold bullion could be included.” If central bankers truly believed in sound monetary policy the headline would have said “We’ll buy all your gold”. That would have propelled both gold and the European equity markets upwards. As it is markets on the continent get cheaper as the good doctor fiddles.

China's Stock Market Whiplash Extends As Greece, Crude Slump More

Now that China is on the same boat as the rest of the world, and its stock market is a direct reflection of hopes for constant liquidity injections by the central banks, nothing could be better for stocks than bad news, which is precisely what it got. After the biggest crash in the Shanghai Composite in 5 years, what China got just the bad economic update it needed, when it reported a PPI of PPI (-2.7%, Exp. -2.4%), the 33rd consecutive decline and a  CPI (1.4%, Exp. 1.6%), lowest since November 2009, when the big banks’ RRR rate stood at 15.5% vs. current 20%. And so hope of yet more PBOC interventions to halt China's deflation promptly reversed SHCOMP losses of over 4% on the session (at which point it was just shy of correction territory from recent highs hit just this week), and stocks surged to close up almost 3%, erasing half of yesterday's losses. This spike came despite reports Chinese regulators may limit brokerages' interbank borrowing.

RBS Abandons Japanese Bond Trading, Cuts 200 Jobs; Stocks, USDJPY, JGB Yields Are Re-Plunging

The Nikkei 225 has fallen over 300 points from the v-shaped recovery close at the end of the US day session and is now trading below the lows of the day at 2-week lows. USDJPY has plunged over 100 pips having briefly neared 120.00, now back below 119.00. JGB Futures are trading near record highs prices as yields collapse to near-record lows (30Y -23bps since QQE, 20Y -15bps) only seen during last year's yield-crash. No surprise then with the bond market "dead" according to market participants and yields negligible, that RBS has decided to exit the Japanese fixed-income business, slashing 200 jobs, and surrendering its primary bond dealership.

Welcome To The Recovery: 40% of Americans Live Paycheck To Paycheck (Up From 30% In 2012)

Nothing screams economic recovery like 2 out of every 5 Americans living paycheck to paycheck. Especially when that number has reportedly increased by 33% since 2012. Perhaps someone should inform these destitute plebs that the stock market is up nearly 45% over the past two years, and after all, nothing says economic success like the 0.01% enriching themselves via fraud and financial engineering.