Salient

Salient Partners

Noted Short Seller Marc Cohodes Comments On The Recent Events At Home Capital

The past two months have been a roller coaster ride for Home Capital shareholders culminating in the announcement of Berkshire Hathaway’s investment in the company this week.  But the deal raises at least as many questions as it answers, not least of which is whose interests are being served?

How Much Longer Can Junk Bonds Ignore Tumbling Oil? UBS Has The Answer

"If oil prices fall to $40 or below, the negative impact on rest of world profits could be a material headwind for aggregate corporate profits, and a prolonged $40 oil price would trigger more stress and defaults in lower-quality HY issuers heading into 2018."

Mark Hanson: Housing Bubble 2.0 - The End Is Nigh?

"If, the past 8-years of a Fed in Armageddon-mode created the 'everything bubble', what will shifting monetary policy into reverse do to said asset price levels? ..Remember, a 'house-price recovery' and 'housing market recovery' are two vastly different things."

Multipolar World Order: The Big Picture In The Qatar-Saudi Fracture

"The American century is rapidly coming to an end. Terrorists are biting their masters’ hands and the vassals are rebelling. The unipolar world order that defers to the United States is rapidly disappearing, and the consequences are being felt in many areas of the world."

Canada, Let's Not Minsky Words

"Breeding animal spirits too long creates systemic problems...and for Canadian real estate, the truth is Minsky instability could’ve been argued years ago - But central banks have created unstable market monsters that they neither can afford to feed nor fight."

Angst In America - Disappearing Pensions

The deeper you look, the worse this pension situation gets. Angst is a perfectly reasonable response for anyone who is retired or thinking about retiring in the next decade...

Investors' Leverage Hits An All-Time High

"...on a quarterly basis, the market is currently more overbought than at just about any other point in history... Combined with record levels of margin debt, the current conditions HAVE NEVER lasted indefinitely. "

The Useful And The Useless

The battle lines are forming... Take away the undeserved from the undeserving and you get a tantrum. Steal the earned from those who earned it and you get righteous rage. One’s a firecracker, the other a volcano.

Ben Hunt's Mailbag - Life In Trumpland

"I wrote this note because I am so effin’ tired of being called a racist or a sexist because I don’t think that Donald Trump is evil incarnate... I think Trump is a narcissist and an ass, not a Fascist. Like most people in the financial services world, I deal with narcissists and asses every day … they’re not Hitler clones because the only thing they’re really true-believers about is their own self-aggrandizement."

"The European 'Story' Is Broken"

"I’ll listen to what the bond market is telling me over whatever Goldman Sachs and Morgan Stanley and the rest of our sell-side friends is pitching me. The "buy-Europe!" story that has been pitched by the sell-side ad nauseam for the past six months is broken and stocks are defenseless against the steady stream of anti-Europe political news we are going to endure for the next eight weeks."