- Euro zone bond yields sink to historic lows (Reuters)
- Clinton Foundation to Keep Foreign Donors (WSJ)
- Russia says U.S. forced it to act on Ukraine (Reuters)
- Bankers to China's Rescue (BBG)
- Saudi Arabia Adds Half a Bakken to Global Oil Market in a Month (BBG)
- Valuations of Hong Kong's stock market operator go interstellar (Reuters)
- Switzerland Attracts Fewer Firms as Politics Hurt Business Image (BBG)
Can you arbitrage time? Can you buy and sell time? We think that you can from the perspective of time horizons. In our view, financial markets are operating on the wrong time horizon – one that is too long (thanks to central banks ZIRP/NIRP and credit creation) - although there are signs that this is beginning to change.
This is not a government of the people, for the people, by the people. It is a government that takes from the people. By any means necessary. And they grow bolder with each passing day.
"Fu$k the Fundamentals!": Negative Rates In EU Will Absolutely Wreck the Very System the ECB Sought to SaveSubmitted by Reggie Middleton on 04/14/2015 12:09 -0400
The dude that called the Pan-European Sovereign Debt Crisis in 2010 is making it clear that the ECB is playing with fire, but will never admit it's getting burned.
The US stock market is trading at 1929-bubblesque valuations, with a CAPE of 27.34 (the 1929 CAPE was only slightly higher at 30. And when that bubble burst, stocks lost over 90% of their value in the span of 24 months.
Gold “Going Higher” and “A Big Buy Here” ...
The "ECB Taper" Twitter feed is born and SocGen says QE in Europe has a long ways to go with Mario Draghi having fulfilled only 7% of his promise to monetize the entirety of euro net issuance.
Who’s dumb enough to buy this stuff—10-year debt at negative yields and 100-year debt in a doomed currency? Institutional investors, of course—large pension funds and the like. You might look at news like that and think, well, that’s crazy, I’d never do that. But the fact is, it’s being done with YOUR MONEY. Just like Winston Churchill commented that it’s false to characterize the fighting at places like the Somme, Verdun etc. in WWI as battles, when they were actually more like prolonged sieges, what’s happening in the financial world today is similar. The financial world today is the same. Billion dollar stimulus packages. Quantitative Easing 1, 2, 3… Negative interest rates. Negative long-term debt yields. Cash withdrawal and transaction controls. Higher taxes. Capital controls...
As noted several hours ago, the main story overnight is not that Greece once again narrowly averted a Grexit when it was reported it would make its scheduled payment to the IMF today (adding that next month is a "different story") a development that was met with yet another ultimatum by its "partner", the Eurozone, but the dot com bubble deja vu-esque move in Hong Kong stocks, where the Chinese, seemingly tired of pushing up their local market into the stratosphere have turned their attention southward and are desperate to buy up every single Hong Kong stock.
- Shell Will Buy BG Group for $70 Billion in Cash and Shares (BBG)
- IMF warns of long period of lower growth (FT)
- Wall Street sanguine as it heads into worst earnings season in six years (Reuters)
- Switzerland First With 10-Year Bond at Negative Yield (WSJ)
- U.S. Dot-Com Bubble Was Nothing Compared to Today’s China Prices (BBG)
- Rahm Emanuel Re-Elected as Mayor of Fiscally Ravaged Chicago (BBG)
- Oil falls on U.S. stock build, record Saudi output (Reuters)
- White South Carolina policeman charged with murdering black man (Reuters)
- German Factory Orders Drop for Second Month (BBG)
- A third of Republicans support Iran nuclear deal (Reuters)
Bernanke drove interest down to zero, where it has stayed for over 6 years. In his rationalization, he concedes an importantg point that undermines his argument (and the Fed).
Germany has been kind enough to provide an idea where the foundering Greek "radical leftist" government can find some additional funds: by freezing and raiding the bank accounts of wealthy Greeks. Of course, the legal loophole provision is that only those suspected (not convicted) of tax fraud would be eligible for such an asset freeze, however since in Greece virtually nobody pays the amount of tax they should, this is essentially a carte blanche to freeze and raid the funds of the wealthiest Greeks who have bank accounts in Germany (and soon in all other European nations) no questions asked.
With the Fed supposedly steeling itself at last to remove a little of its emergency ‘accommodation’, it has suddenly become fashionable to warn of the awful parallels with 1937 as an excuse The Fed must not act today. We strongly refute the analogy. Instead, the real Ghost of ’37 takes the form of mean-spirited and, counter-productive 'pitchfork populism' politics and the spectre should not be conjured up to excuse the central bank from further delaying its overdue embarkation on the long road back to normality and policy minimalism.