Reuters

Magic ‘Super Mario’, the ECB’s monetary magician, disappointed markets yesterday as continuing and unprecedented monetary easing failed to prevent a sharp sell-off in stock and bond markets yesterday which has continued today.

As Reuters reports, "Israel has quietly tested ways of defeating an advanced air-defense system that Russia has deployed in the Middle East and that could limit Israel's ability to strike in Syria or Iran, military and diplomatic sources said."

• The Jobs Report Probably Won't Change the Fed's Mind on Liftoff (BBG)
• U.S. authorities look for militant links to shooters in California mass slaying (Reuters)
• Neighbors, Acquaintances Shocked That Couple Are San Bernardino Shooting Suspects (WSJ)
• ECB Fumbles the Stimulus-Baton Hand-off, Mussing Up Fed’s Plans (WSJ)
• OPEC Heads for Status Quo as Members Clash Over Crude Output Cut (BBG)
• Foreigners drawn in as fear and loathing grip China's finance industry (Reuters)

Year end 2015, we go from Ponzi scheme to failure to the thing every major global bank desires. The dilemma is, the ingenuity to excel in this space lies in scrappy young startups, not trillion dollar mega banks. Let me prove this to you, step by prior art step.

Update: DMV releases driver's license photo of Farook

In a press briefing on Thursday, San Bernardino officials catalogued the weapons and ammo discovered in the vehicle and home of Syed Rizwan Farook and his wife Tashfeen Malik who killed 21 and wounded 14 on Wednesday. Additionally, CNN (citing "sources") says Farook was likely "radicalized." The pair were "well equipped" and could have staged another attack, police say.

But just like in 2008, the “experts” at the Federal Reserve are assuring all of us that everything is going to be just fine.  This is the exact same kind of mistake that the Federal Reserve made back in the late 1930s.  They thought that the U.S. economy was finally recovering, and so interest rates were raised.  That turned out to be a tragic mistake.

“Was there a link to terror?” That’s the question Americans are asking themselves the morning after a husband and wife opened fire with assault rifles killing 14 and wounding 17 at a San Bernardino County employee holiday party. The shooters, Syed Rizwan Farook, 28, and Tashfeen Malik, 27, left their young child with Farook’s mother in nearby Redlands on Wednesday morning before dressing in “assault clothing,” and crashing the party (literally).

She warned against a EU superstate by saying famously: "We have not successfully rolled back the frontiers of the state in Britain, only to see them reimposed at a European level, with a European superstate exercising a new dominance from Brussels."

Having stated unequivocally last week that "we can't let this become the new normal.. enough is enough," following the Planned Parenthood shooting, President Obama - having seen a record amount of background checks for gun purchases over the Black Friday weekend - is set to make a statement (alongside his National Security Team) with regard the mass shooting in San Bernardino yesterday...

• Mario Draghi Is About to Become the World's Market Risk Manager (BBG)
• Five Things to Ask Mario Draghi From Negative Rates to QE (BBG)
• Leaving behind baby and bombs, couple sows panic in California (Reuters)
• Couple's motive in California rampage a mystery for police, family (Reuters)
• In Grim Ritual, Barack Obama Again Calls for Stricter Gun Control After Mass Shooting (WSJ)
• Islamic State Defeat Impossible Without Ground Force, Kerry Says (BBG)
• OPEC States Push for Output Cuts in Face of Saudi Opposition (BBG)

The resistance to such an awakening is understandable if still lamentable. If recession is truly the looming assurance, as it increasingly appears, that would mean not just the end of the recovery but the end of “accommodation” as a given force. In other words, Janet Yellen and the OECD start backwards from their endpoint because of their unshakable faith in monetarism, a faith that actually defines how they think an economy does work (and how they produce the core assumptions in their models); should that path from here to there completely unravel, so, too, does their assumed power and philosophy.

"On all levels, Moscow has always noted that the continuing expansion of NATO, of the military infrastructure of NATO to the east, can only lead to retaliatory measure from the east, from the Russian side, in terms of guaranteeing the security and maintaining a parity of interests."

Janet Yellen is set to begin the first part of her two-day excuse-fest for why The Fed will raise rates (market implied odds at 74%) in December despite Chinese stocks crashing again, carnage in commodities, a revenues recession, plunging EBITDA, a collapse in US manufacturing, housing rolling over, and auto sales fading (yes, read the facts here). Few expect her to rock the boat to change the market's perception, especially following Lockhart's confirmation that The Fed's job mandate has been met.

“Do not believe in anything simply because you have heard it. Do not believe in anything simply because it is spoken and rumored by many. Do not believe in anything because it is found written in your religious books. Do not believe in anything merely on the authority of your teachers and elders.” - Buddha