- Fed expected to push ahead with rate hike plan (Reuters)
- Upbeat earnings lift European stocks ahead of Fed (Reuters)
- Chevron to Cut 1,500 Jobs (Rigzone)
- Can Windows 10 Revive PC Sales? (WSJ)
- U.S. Junk-Bond Buyers Left in Dark as Private Deals Become Norm (BBG)
- Jeb Bush Drawing Big Bucks From GOP Establishment (WSJ)
- Myriad of Greek Risks Means Money Managers in No Hurry to Return (BBG)
- Gas production at Gazprom set to hit post-Soviet low (FT)
How A Pork Bellies Trader And Milton Friedman Created "The Greatest Trading Casino In World History"Submitted by Tyler Durden on 07/21/2015 16:30 -0400
"I held in my hand the Holy Grail for the Chicago Mercantile Exchange. The most influential economic mind of the twentieth century provided the CME with the intellectual foundation upon which to build its financial superstructure."
- Chinese stocks tumble again, ignoring Beijing's blandishments (Reuters)
- Plight of Greek pensioners heaps pressure on Tsipras (Reuters)
- Cash Crunch Hits Everyday Life in Greece (WSJ)
- Souvlakis Tell a Story Well Beyond Today's Greek Crisis (BBG)
- Greek Referendum on Bailout Too Close to Call, Poll Shows (BBG)
- Move Over Greece: For Treasuries Traders, Today Is About the Fed (BBG)
- ECB adds corporate names to QE-eligible bonds (FT)
- Special Report: How Greece went bust (Reuters)
- Puerto Rico’s Pain Is Tied to U.S. Wages (WSJ)
"Washington broke arms and heads to get that 60th vote—not one to spare—to impose on the American people a plan which imperils their jobs, wages, and control over their own affairs. It is remarkable that so much energy has been expended on advancing the things Americans oppose, and preventing the things Americans want. The same routine plays out over and again. We are told a massive bill must be passed, all the business lobbyists and leaders tell how grand it will be, but that it must be rushed through before the voters spoil the plan. And when ordinary Americans who never asked for the plan, who don’t want the plan, who want no part of the plan, resist, they are scorned, mocked, and heaped with condescension."
- Greek PM optimistic on debt deal as banks bleed (Reuters)
- Greek central bank chief says banking system stable (Kathimerini)
- ECB Said to Confer on Emergency Greek Aid Amid Cash Flight (BBG)
- More tax "avoidance": Citigroup to shift European retail banking HQ to Dublin (Reuters)
- Florist's tip led police to Charleston shooting suspect (USAToday)
- Asian shares edge higher on Fed caution, China sell-off intensifies (Reuters)
- Toyota in damage control mode after American exec arrested (Reuters)
- Venezuela Oil Loans Go Awry for China (WSJ)
This won't end well... As far as the Empire of Chaos goes, Divide and Rule remains the sweetest game in town.
- Amtrak train in Philadelphia wreck was traveling at twice speed limit (Reuters)
- The engineer has no recollection of the crash and “no explanation” for what happened (WSJ)
- Taliban claim attack on Afghan guesthouse that killed 14 (Reuters)
- Chicago’s Junk Rating From Moody’s Puzzles Investors (BBG)
- House votes to end spy agencies' bulk collection of phone data (Reuters)
- Wesley Clark: The Penny-Stock General (BBG)
- AOL’s Armstrong to Leave $213 Million Richer After Verizon Deal (BBG)
In welfare state America its virtually certain that through one artifice or another taxes will go up and the national debt burden will rise to crushing heights in order to keep the baby boomers’ entitlements funded. While Keynesians and Wall Street stock peddlers are clueless about the implications of this - it actually doesn’t take too much common sense to get the drift. Namely, under a long-term path of fewer producers, higher taxes and more public debt, the prospects for rejuvenating the previous historically average rates of real output growth are somewhere between slim and none - to say nothing of the super-normal rates implied by the markets’ current bullish enthusiasm.
In the first part of this series; several fundamental principles of economics (and markets) were stressed. Supply/demand analysis is not merely objective, and logically/mathematically irrefutable; it is the only basis upon which the market for any hard asset can be analyzed. Conversely the price-analysis constantly parroted by the Corporate media is utterly devoid of any significance or legitimacy – in the corrupted crime-scenes of today which we call our markets.
- 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)
- China growth slowest in six years, more stimulus expected soon (Reuters)
- EU charges Google over shopping searches, to probe Android (Reuters)
- A Chinese Paradox: Slow Growth Is Good, Stock Bubbles Welcome (BBG)
- Draghi Seen Dispelling Duration Doubts About QE Program (BBG)
- IEA Sees OPEC Supply Jumping Most in Four Years on Saudi Surge (BBG)
- SEC Reaches Settlement with Former Freddie Mac (WSJ)
- Kerry says confident Obama can get final deal on Iran (Reuters)
- Regulators Call for Short-Term Loan Changes to Handle ‘Too-Big-to-Fail’ (WSJ)
- Florida Doctor Linked to Sen. Robert Menendez Indicted for Medicare Fraud (WSJ)
Another Electric Car Bites The Dust: Current Chevy Volt To Go The Way Of The Aztek Due To Plunging SalesSubmitted by Tyler Durden on 04/09/2015 14:07 -0400
GM is halting production of the Chevrolet Volt electric car for the summer to whittle down about seven months of unsold inventory and smooth the way for the next generation of the plug-in hybrid sedan. Production of the current model, which costs $34,000 and up before federal tax credits, will halt early next month, the Detroit auto maker has said. It will be replaced by a 2016 model with a sleeker design and up to 50 miles range on an electric charge. That second generation Volt will go into production at the end of the summer.
- Google's new CFO to make $70 million (WSJ)
- Senate passes Republican budget with deep safety net cuts (Reuters)
- With Yemen strikes, Saudis show growing independence from U.S. (Reuters)
- Banks Slash Dividends as Loans Sour From Beijing To Pearl River (BBG)
- North American Railroads Caught by Speed of Crude-Oil Collapse (BBG)
- Japan’s Zero Inflation a Setback for Abenomics (WSJ)
- Cooperman Says U.S. Seeks Information About Omega Trades (BBG)
Janet Yellen noted that everything was awesome and that stocks were now slightly "on the high side" of their historical range. It appears no one showed her the Russell 2000 which has a valuation multiple of just about 90x LTM earnings (as reported by the 2000 companies which comprise the index, and which were certified as accurate by 4,000 CEOs and CFOs on penalty of jail time). The mystery of how the Fed remains so stubbornly bubble blind - just like it did during the dotcom and housing bubbles - is thus revealed. The self-evident reason is that the purported geniuses who comprise our monetary politburo drink the Wall Street Cool-Aid about forward ex-items EPS. The Fed is driving a two-ton bubble machine, but has no clue that it has become a financial death trap.
"Today, if you own an asset, say stocks or a home, and it went up in price, you do not perceive it as permanent. You fear it could go back down and you spend none of that money. You are not going to alter your investment decisions or your business decisions. That is why the QE-programs did not work. The goal of the Fed was to push up asset prices. With that in mind, they do not want asset prices to go down because they think it will create a reverse wealth effect. QE has been all about pushing up markets and they are not going to throw that to the wind.... By pushing up asset prices ECB president Draghi is going to make the same mistake as the Fed."