Too Big To Fail

Waking Up In Hillary Clinton's America

With less than two weeks to go before E-day -- despite the Trumptilian upheaval of the last year -- the high probability of a Clinton win means the establishment remains intact. When we awaken on November 9th, it will undoubtedly be dawn in Hillary Clinton’s America and that potentially means four years of an economic dystopia that will (as would Donald Trump’s version of the same) leave many Americans rightfully anxious about their economic futures.

Frontrunning: October 26

  • Florida Once Again a Focus in 2016 Campaign (WSJ)
  • Trump Has Slim Edge in Bloomberg Poll of Florida (BBG)
  • NATO seeks troops to deter Russia on eastern flank (Reuters)
  • Arbs Stay on Sidelines of AT&T-Time Warner Deal (WSJ)
  • Holiday Forecast for Apple Crumbles (BBG)
  • Saudi Arabia Faces Tough OPEC Equation With Mounting ‘Exemptions’ (BBG)

Frontrunning: October 25

  • Hilsenrath: Fed’s Task Ahead: How Best to Signal Year-End Rate Move (WSJ)
  • Fed Inclined to Raise Rates If Next President Pumps Up Budget (BBG)
  • World stocks, commodities climb as economic confidence lifts (Reuters)
  • Ahead of earnings: Apple Boosted by IPhone 7 Demand, Slowing Pace of Sales Decline (BBG)
  • Campaigns Brace for Election-Day Legal Battles (WSJ)

The Economic "Recovery" Feels Weak Because The Great Recession Never Really Ended

"We are not in a recovery and were not really in a traditional recession. People think of a business cycle as a boom, followed by a recession and then there are automatic stabilizers that revive the economy, but this time, we can't revive. And the reason is that every recovery since 1945 has begun with a higher, and higher, and higher level of debt. And the debt is so high now that since 2008 we've been in what I call, debt deflation."

 

The New 'Too Big To Fail' - EU Proposes Taxpayer-Funded Derivatives System Bailout

It would appear the powers-that-be have just stumbled on to the ugly fact that all the bailed-in depositor money in the world won't stop the novated, rehypothecated, collateral chain collapse contagion that Deutsche Bank's $40 trillion-plus derivatives book's damocles sword hangs over the status quo. However, being the problem-solving types, the European technocrats have a 'fair-share' solution - back a derivative clearing-house with taxpayer money to solve the new too-biggest-to-fail problem "that no one saw coming."

Wall Street: The Trump-China Missing Link

If in the next two presidential debates Trump points to the crucial missing link in the whole plot – Wall Street - he might as well lock on as a surefire winner.

How The 'Deplorables' Can Save America

The U.S. cannot be saved from financial crisis; instability is a mathematical certainty. It is how we respond to this instability that will determine our success or failure. Here is what we “deplorables” must accomplish in the next decade if we are to rebuild America and defeat globalism...

Wells Fargo Or The Fed: Who's The Bigger Fraud?

The Wells Fargo bank account scandal took center stage in the news last week and in all likelihood will continue to make headlines for many weeks to come. What Wells Fargo employees did in opening bank accounts without customers' authorization was obviously wrong, but in true Washington fashion the scandal is being used to deflect attention away from larger, more enduring, and more important scandals.

Time To Get Real, Part 2: "We Need Their Drugs"

On the current path, the world is experiencing the largest artificial asset allocation in modern history, one that is driven by a misguided interest rate regime that has lost its efficacy and is producing more harm than good. Yet the fear of withdrawal pain is keeping central bankers from doing the inevitable: Quit. The response is predictable: "I need the drugs!"

Global Supply Chains Paralyzed After World's 7th Largest Container Shipper Files Bankruptcy, Assets Frozen

After years of relentless decline in the Baltic Dry index today the largest casualty finally emerged on Wednesday when South Korea's Hanjin Shipping, the country's largest shipping firm and the world's seventh-biggest container carrier, filed for court receivership on Wednesday after losing the support of its banks, leaving its assets frozen as ports from China to Spain denied access to its vessels.