• Bruce Krasting
    12/18/2014 - 21:42
      The one thing that Jordan can't do in this war is appear to be weak.

Switzerland

Tyler Durden's picture

Former BIS Chief Economist: "The System Is Dangerously Unanchored; It Is Every Man For Himself"





"There is no automatic adjustment of current account deficits and surpluses, they can get totally out of hand. There are effects from big countries to little ones, like Switzerland. The system is dangerously unanchored. It is every man for himself. And we do not know what the long-term consequences of this will be. And if countries get in serious trouble, think of the Russians at the moment, there is nobody at the center of the system who has the responsibility of providing liquidity to people who desperately need it. If we have a number of small countries or one big country which run into trouble, the resources of the International Monetary Fund to deal with this are very limited. The idea that all countries act in their own individual interest, that you just let the exchange rate float and the whole system will be fine: This all is a dangerous illusion."

 
Tyler Durden's picture

Central Banks Are Now Uncorking The Delirium Phase





Virtually every day there is an eruption of lunacy from one central bank or another somewhere in the world. In short, the central banks of the world are embroiled in a group-think mania so extreme and irrational that it puts one in mind of the spasm of witchcraft trials that erupted in the Massachusetts Bay Colony nearly four centuries ago.  As a practical matter, this mania amounts to a race to the currency bottom and the final extinguishment of the price discovery mechanism in every financial market on the planet. Flying blind, the financial markets are thus bubbling - in the delirium phase - like never before. That is, until they don’t.

 
Tyler Durden's picture

Frontrunning: December 19





  • Icahn, Paulson Suffer Large Losses as Energy-Related Bets Sour (WSJ)
  • Oil Investors Keep Betting Wrong on When Market Will Bottom (BBG)
  • U.S. to sell final $1.25 billion shares of Ally Financial from bailout (Reuters)
  • Ally Financial Gets Subpoena Related to Subprime Automotive Finance (WSJ)
  • Russia's parliament rushes through bill boosting banking capital (Reuters)
  • How a Memo Cost Big Banks $37 Billion (WSJ)
  • ECB considers making weaker euro zone states bear more quantitative easing risk (Reuters)
  • How the U.S. Could Retaliate Against North Korea (BBG)
 
Bruce Krasting's picture

Fog of War





 

The one thing that Jordan can't do in this war is appear to be weak.

 
Capitalist Exploits's picture

The Implications of "Red Monday"





The oil price drop is a big problem - not just for Russia, or for the other over-levered emerging market currencies that stand to be traumatized by a rising dollar, but ultimately even for the US itself

 
Tyler Durden's picture

Swiss Central Bank Plunges Into NIRP, Sends Deposit Rates Negative, Scrambles Against Safe-Haven Capital Flight





Everyone thought that any major monetary policy surprises and/or capital controls today would come from Putin during his annual press conference. Boy were they wrong: just after 2 am Eastern, none other than the Swiss National Bank joined the ranks of the ECB in scrambling to stem the wave of capital flight, not to mention the cost of money, when it announced it too would start charging customers for the privilege of holding cash in its banks, when it revealed a negative, -0.25% interest rate on sight deposits: a step which according to the SNB was critical in maintaining the 1.20 EURCHF floor.

 
Tyler Durden's picture

Frontrunning: December 15





  • Sydney Siege Sparks Muslim Call for Calm Amid Backlash Fear (BBG)
  • Oil Spilling Over Into Central Bank Policy as Fed Enters Fray (BBG)
  • Biggest LBO of 2014: BC Partners to acquire PetSmart for $8.7 billion (Reuters)
  • Tremble algos: the SEC has hired... "QUANTS" (WSJ)
  • When the bubble just isn't bubbly enough: There’s $1.7 Trillion Locked Out of China’s Stock Rally (BBG)
  • Oil price slide roils emerging markets, yen rises (Reuters) - may want to hit F5 on that
  • Libya Imposes Force Majeure on 2 Oil Ports After Clashes (BBG) ... and will resume production in days
  • Amid Crisis, Pimco Steadies Itself (WSJ)
 
Tyler Durden's picture

Martin Armstrong Warns Civil Unrest Is Rising Everywhere (And Government Is Digging In Its Heels)





"Governments always turn against the people... they too realize that the people are starting to wake up against the abuse of government everywhere. Politicians will be politicians. What is left to say?"

 

 
Tyler Durden's picture

Austria Considers Repatriating Its Gold





And just like that, the list of countries who want to repatriate their gold just increased by one more, because after Venezuela, Germany, the Netherlands, Switzerland, and rumors of Belgium, we now can add Austria to those nations for whom the "6000 year old barbarous relic bubble" is more than just "tradition."

 
Tyler Durden's picture

7 Questions Gold Bears Haven't Answered





If we're in a gold bear market, then answer these questions...

 
Tyler Durden's picture

Freefalling Yen Levitates Equities Around The World





Confused why in the lack of any horrible economic news (unless of course someone leaked a worse than expected November payrolls print which would put QE4 right back on the table) futures are higher, especially in the aftermath of yesterday's disappointing ECB conference? Then look no further than the Yen which has now lost pretty much all control and is in freeplunge mode, rising some 25 pips moments ago on no news, but merely as wave after wave of momentum ignition algos now make a joke of the Japanese currency, whose redline of 123 (as defined by SocGen)is now just 240 pips away. At this pace, Japan's economy, which as reported yesterday has just seen a record number of corporate bankruptcies due to the plummeting yen, may well be dead some time next week. Which, with Paul Krugman as its new and improved economic advisor, is precisely as expected. RIP Japan.

 
GoldCore's picture

Gold +14.3%, 12.3%, 5.8% and 0.4% in JPY, EUR, GBP and USD 2014 YTD





In terms of the cycle of market emotions, gold is as close to ‘depression’ as we have seen (see chart). Yet, so far in 2014, gold is 14.3%, 12.3%, 5.8% and 0.4% higher in japanese yen, euros, sterling and dollars respectively (see chart).

 
GoldCore's picture

London Property Bubble Primed To Burst - Consequences For UK Economy and Sterling





The ongoing slump in oil prices looks set to take their toll on London’s “super prime” property markets with attendant consequences for the rest of the London property market. Foreign money that had been flooding into the UK from a whole array of international sources and parking in London real estate is drying up.

 
GoldCore's picture

US Debt Reaches $18 Trillion; Surges 70% In Obama's ‘Recovery’





Total U.S. national debt hit a new record high overnight at over $18 trillion as the Obama administration continues to pile debt onto the back of the U.S. taxpayer at a rate that would have made George W. Bush look prudent.

 
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