http://www.zerohedge.com/fullrss2.xml/%20http%3A/www.lsjourney.com en Interest Rate Differentials Increasing Financial Market Leverage To Unsustainable Levels http://www.zerohedge.com/news/2017-02-24/interest-rate-differentials-increasing-financial-market-leverage-unsustainable-level <p>By <a href="http://www.econmatters.com/search/label/EconMatters"><span style="text-decoration: underline;"><span style="color: #0066cc;">EconMatters</span></span></a> </p> <p><em><br /></em> </p> <div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-WHgSgGKf6ho/WLC_rd21pxI/AAAAAAAAOHc/0i9GGy5DI78xXurK7S82PjET47-qyX48gCLcB/s1600/risk_management_03.jpg" style="margin-left: 1em; margin-right: 1em;"><img src="https://2.bp.blogspot.com/-WHgSgGKf6ho/WLC_rd21pxI/AAAAAAAAOHc/0i9GGy5DI78xXurK7S82PjET47-qyX48gCLcB/s400/risk_management_03.jpg" height="250" width="400" border="0" /></a></div> <p> We discuss the rate differentials between Switzerland, Britain, Europe, Japan and the United States and how this Developed Financial Markets carry trade is incentivizing excessive risk taking with tremendous leverage and destabilizing the entire financial system in the process in this video. You want to know what is behind weekly market records, borrowed money via punchbowl central bank liquidity. This ends badly every time Central Banks. You can run this model 1 Million iterations, and it plays out the same way, the financial bubble implodes in on itself where liquidity evaporates into nothingness. It is ironic that when the bubble pops, given all the Central Bank infused liquidity to create this bubble paradigm, that all liquidity dries up, and all the sudden there is no real liquidity at all in the system when everyone direly needs it!</p> <div class="separator" style="clear: both; text-align: center;"><iframe src="https://www.youtube.com/embed/kpPWzrFnxOk?feature=player_embedded" height="266" width="320" frameborder="0"></iframe></div> <div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-pcFw7cT4kA0/WLDFAP-ewFI/AAAAAAAAOHs/07_IW5Dnh3AS8TVYGolkct3R8assHpDlQCLcB/s1600/euro-area-interest-rate.png" style="margin-left: 1em; margin-right: 1em;"><img src="https://4.bp.blogspot.com/-pcFw7cT4kA0/WLDFAP-ewFI/AAAAAAAAOHs/07_IW5Dnh3AS8TVYGolkct3R8assHpDlQCLcB/s640/euro-area-interest-rate.png" height="298" width="640" border="0" /></a></div> <p>&nbsp;</p> <div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-skIjkxB5rMc/WLDFESjhDBI/AAAAAAAAOHw/DECESdGiYmkma0AhReeGlNNCZOzAZW4BQCLcB/s1600/japan-interest-rate.png" style="margin-left: 1em; margin-right: 1em;"><img src="https://2.bp.blogspot.com/-skIjkxB5rMc/WLDFESjhDBI/AAAAAAAAOHw/DECESdGiYmkma0AhReeGlNNCZOzAZW4BQCLcB/s640/japan-interest-rate.png" height="298" width="640" border="0" /></a></div> <p>&nbsp;</p> <div class="separator" style="clear: both; text-align: center;"><a href="https://1.bp.blogspot.com/-pUxLg04vumk/WLDFHYPdAMI/AAAAAAAAOH0/XVCnb38BNA0He7LdjNOXXH36arJJMU0oQCLcB/s1600/switzerland-interest-rate.png" style="margin-left: 1em; margin-right: 1em;"><img src="https://1.bp.blogspot.com/-pUxLg04vumk/WLDFHYPdAMI/AAAAAAAAOH0/XVCnb38BNA0He7LdjNOXXH36arJJMU0oQCLcB/s640/switzerland-interest-rate.png" height="298" width="640" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a href="https://4.bp.blogspot.com/-FuQLBWtAarA/WLDFKwBR_DI/AAAAAAAAOH4/wg5mFNs6sJYJ_E7EtGvKUf97zRaBzi2GQCLcB/s1600/united-kingdom-interest-rate.png" style="margin-left: 1em; margin-right: 1em;"><img src="https://4.bp.blogspot.com/-FuQLBWtAarA/WLDFKwBR_DI/AAAAAAAAOH4/wg5mFNs6sJYJ_E7EtGvKUf97zRaBzi2GQCLcB/s640/united-kingdom-interest-rate.png" height="298" width="640" border="0" /></a></div> <div class="separator" style="clear: both; text-align: center;"><a href="https://2.bp.blogspot.com/-kqSPVbYzJCQ/WLDFSVfE02I/AAAAAAAAOH8/lCgVEJoAY4AiqUc1BsYBbar5p9zlYxf3wCLcB/s1600/united-states-interest-rate.png" style="margin-left: 1em; margin-right: 1em;"><img src="https://2.bp.blogspot.com/-kqSPVbYzJCQ/WLDFSVfE02I/AAAAAAAAOH8/lCgVEJoAY4AiqUc1BsYBbar5p9zlYxf3wCLcB/s640/united-states-interest-rate.png" height="298" width="640" border="0" /></a></div> <div></div> <div><strong><span style="text-decoration: underline;">Conclusion:</span></strong></div> <div></div> <div>Central Banks need a coordinated response to figure how they get out of this Developed World interest rate differential problem that risks blowing up the entire Global Financial System because of poor incentives in regards to promoting excessive leverage, poor risk management and imprudent investment decision making processes. My solution would be for the first four Central Banks to tighten Monetary Policy more than the US Federal Reserve. However, the status quo relationship is untenable, and the next alternative would be for the Fed to surprise market participants, showing traders to be on their toes, that there are risks to excessive leverage with borrowed central bank carry funds in a Risk-Off Environment.</div> <div></div> <div></div> <div>© <a href="http://www.econmatters.com/" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">EconMatters</span></span></a> All Rights Reserved | <a href="http://www.facebook.com/EconMatters" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Facebook</span></span></a> | <a href="http://twitter.com/#!/EconMatters" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Twitter</span></span></a> | <a href="http://www.youtube.com/c/Econmatters" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">YouTube</span></span></a> | <a href="http://feedburner.google.com/fb/a/mailverify?uri=EconForecast" target="_blank"><span style="text-decoration: underline;"><span style="color: #0066cc;">Email Digest</span></span></a> | <a href="http://astore.amazon.com/econforecast-20?_encoding=UTF8&amp;node=80"><span style="text-decoration: underline;"><span style="color: #0066cc;">Kindle</span></span></a><strong>&nbsp;</strong><em>&nbsp;</em><span style="text-decoration: underline;">&nbsp;</span><span style="text-decoration: line-through;">&nbsp;</span></div> http://www.zerohedge.com/news/2017-02-24/interest-rate-differentials-increasing-financial-market-leverage-unsustainable-level#comments Bank Banking Business Carry Trade Central Banks Economic bubble Economy Federal Reserve Finance Financial markets Financial ratios Financial risk Interest rate Japan Market liquidity Monetary Policy Money Risk Management Switzerland Systemic risk Twitter Twitter US Federal Reserve Sat, 25 Feb 2017 00:03:58 +0000 EconMatters 588941 at http://www.zerohedge.com Honesty http://www.zerohedge.com/news/2017-02-24/honesty <p>Pick your poll poison...</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_polls.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_polls_0.jpg" width="600" height="453" /></a></p> <p><a href="https://townhall.com/political-cartoons/2017/02/23/148913"><em>Source: Townhall.com</em></a></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="684" height="516" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170224_polls.jpg?1487959204" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/honesty#comments Conservatism in the United States Politics Technology The Heritage Foundation Townhall Fri, 24 Feb 2017 23:45:00 +0000 Tyler Durden 588931 at http://www.zerohedge.com Buchanan: Is Secession A Solution To Cultural War? http://www.zerohedge.com/news/2017-02-24/buchanan-secession-solution-cultural-war <p><a href="http://buchanan.org/blog/secession-solution-cultural-war-126571"><em>Submitted by Patrick Buchanan via Buchanan.org,</em></a></p> <p>As the culture war is about irreconcilable beliefs about God and man, right and wrong, good and evil, and is at root a religious war, it will be with us so long as men are free to act on their beliefs.</p> <p>Yet, given the divisions among us, deeper and wider than ever, it is an open question as to how, and how long, we will endure as one people.</p> <p>After World War II, our judicial dictatorship began a purge of public manifestations of the &ldquo;Christian nation&rdquo; that Harry Truman said we were.</p> <p>In 2009, Barack Obama retorted, &ldquo;We do not consider ourselves to be a Christian nation.&rdquo; Secularism had been enthroned as our established religion, with only the most feeble of protests.</p> <p>One can only imagine how Iranians or Afghans would deal with unelected judges moving to de-Islamicize their nations. Heads would roll, literally.</p> <p><strong>Which bring us to the first culture war skirmish of the Trump era.</strong></p> <p>Taking sides with Attorney General Jeff Sessions against Education Secretary Betsy DeVos, the president rescinded the Obama directive that gave transgender students the right to use the bathroom of their choice in public schools. President Donald Trump sent the issue back to the states and locales to decide.</p> <p>While treated by the media and left as the civil rights cause of our era, the &ldquo;bathroom debate&rdquo; calls to mind Marx&rsquo;s observation, &ldquo;History repeats itself, first as tragedy, second as farce.&rdquo;</p> <p><em><strong>Can anyone seriously contend that whether a 14-year-old boy, who thinks he is a girl, gets to use the girls&rsquo; bathroom is a civil rights issue comparable to whether African-Americans get the right to vote?</strong></em></p> <p>Remarkably, there was vigorous dissent, from DeVos, to returning this issue to where it belongs, with state and local officials.</p> <p>After yielding on the bathroom question, she put out a statement declaring that every school in America has a &ldquo;moral obligation&rdquo; to protect children from bullying, and directed her Office of Civil Rights to investigate all claims of bullying or harassment &ldquo;against those who are most vulnerable in our schools.&rdquo;</p> <p>Now, bullying is bad behavior, and it may be horrible behavior.</p> <p><em><strong>But when did a Republican Party that believes in states rights decide this was a responsibility of a bureaucracy Ronald Reagan promised but failed to shut down? When did the GOP become nanny-staters?</strong></em></p> <p>Bullying is something every kid in public, parochial or private school has witnessed by graduation. While unfortunate, it is part of growing up.</p> <p>But what kind of society, what kind of people have we become when we start to rely on federal bureaucrats to stop big kids from harassing and beating up smaller or weaker kids?</p> <p>While the bathroom debate is a skirmish in the culture war, Trump&rsquo;s solution &mdash; send the issue back to the states and the people there to work it out &mdash; may point the way to a truce &mdash; assuming Americans still want a truce.</p> <p>For Trump&rsquo;s solution is rooted in the principle of subsidiarity, first advanced in the 1891 encyclical Rerum Novarum by Pope Leo XIII &mdash; that social problems are best resolved by the smallest unit of society with the ability to resolve them.</p> <p><strong>In brief, bullying is a problem for parents, teachers, principals to deal with, and local cops and the school district if it becomes widespread.</strong></p> <p>This idea is consistent with the Republican idea of federalism &mdash; that the national government should undertake those duties &mdash; securing the borders, fighting the nation&rsquo;s wars, creating a continental road and rail system &mdash; that states alone cannot do.</p> <p><strong>Indeed, the nationalization of decision-making, the imposition of one-size-fits-all solutions to social problems, the court orders emanating from the ideology of judges &mdash; to which there is no appeal &mdash; that is behind the culture wars that may yet bring an end to this experiment in democratic rule.</strong></p> <p>Those factors are also among the primary causes of the fever of secessionism that is spreading all across Europe, and is now visible here.</p> <p>Consider California. Democrats hold every state office, both Senate seats, two-thirds of both houses of the state legislature, 3 in 4 of the congressional seats. Hillary Clinton beat Trump 2-to-1 in California, with her margin in excess of 4 million votes.</p> <p><strong>Suddenly, California knows exactly how Marine Le Pen feels.</strong></p> <p>And as she wants to &ldquo;Let France Be France,&rdquo; and leave the EU, as Brits did with Brexit, a movement is afoot in California to secede from the United States and form a separate nation.</p> <p>California seceding sounds like a cause that could bring San Francisco Democrats into a grand alliance with Breitbart.</p> <p><strong>A new federalism</strong> &mdash; <em>a devolution of power and resources away from Washington and back to states, cities, towns and citizens, to let them resolve their problems their own way and according to their own principles</em> &mdash; <strong>may be the price of retention of the American Union.</strong></p> <p>Let California be California; let red state America be red state America.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="227" height="133" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170224_secede.jpg?1487972978" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/buchanan-secession-solution-cultural-war#comments Abuse American Union Barack Obama Behavior Brexit Bullying Business Climate change skepticism and denial Donald Trump Donald Trump European Union Federalism France national government Nationalization office of Civil Rights Persecution Political positions of Donald Trump Politics Politics Politics of the United States Republican Party Republican Party Senate Social Issues state legislature The Apprentice UN Court WWE Hall of Fame Fri, 24 Feb 2017 23:20:00 +0000 Tyler Durden 588930 at http://www.zerohedge.com Ruth Bader Ginsburg: "Not The Best Of Times" For America, "I Read WaPo And NYT Every Day" http://www.zerohedge.com/news/2017-02-24/justice-ginsburg-praises-free-press-says-not-best-times-america <p>Having regretted her <a href="http://www.zerohedge.com/news/2016-07-13/donald-trump-rips-ginsburg-her-mind-shot-she-should-resign-nyt-says-trump-right">remarks in July 2016 that now-President Donald <strong>Trump was &quot;a faker,&quot;</strong></a> Supreme Court Justice Ruth Bader Ginsburg says <strong>the US is &quot;not experiencing the best of times&quot; - but the &quot;pendulum&quot; will swing back.</strong></p> <p>Speaking to <a href="http://www.bbc.com/news/world-us-canada-39065535">BBC Newsnight, in a rare interview</a>, the <strong>oldest serving member of the Supreme Court (83 years old)</strong> says she is &quot;optimistic in the long run&quot;...</p> <p><iframe frameborder="0" height="315" src="https://www.youtube.com/embed/UQzClRA2QLM" width="560"></iframe></p> <p>Justice Ginsburg reiterated the importance of the free press.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em><strong>&quot;I read the Washington Post and the New York Times every day, and I think that the reporters are trying to tell the public the way things are,&quot; </strong></em>she said.</p> <p>&nbsp;</p> <p>&quot;Think of what the press has done in the United States,&quot; she said citing the Watergate scandal. &quot;That story might never have come out if we didn&#39;t have the free press that we do.&quot;</p> </blockquote> <p>Asked what most concerns her about the current climate she said, in an apparent reference to longstanding congressional gridlock:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;Our legislature - which is the first branch of government - is right now not working.&quot;</p> </blockquote> <p>Justice Ginsburg was careful to avoid commenting directly on Donald Trump&#39;s presidency.</p> <p>Asked about the rise of the so-called &quot;post truth world&quot;, Justice Ginsburg said:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;I am optimistic in the long run. A great man once said that the true symbol of the United States is not the bald eagle. It is the pendulum.</strong></p> <p>&nbsp;</p> <p>&quot;And when the pendulum swings too far in one direction it will go back.</p> <p>&nbsp;</p> <p><strong>&quot;Some terrible things have happened in the United States but one can only hope that we learn from those bad things.&quot;</strong></p> </blockquote> <p>She cited the example of the internment of Japanese-Americans during World War II, when more than 110,000 people were put into camps, in the largest official forced relocation in US history.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;That was a dreadful mistake. It took a long time for the United States to realise how dreadful it was. But ultimately the president acknowledged that there was no reason to intern people of Japanese ancestry and Congress passed a bill providing compensation for the people who were interned or their survivors.&quot;</p> </blockquote> <p>Justice Ginsburg said she was encouraged by the Women&#39;s March, which saw millions in the US and around the world take part in anti-Trump protests.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;<strong>I&#39;ve never seen such a demonstration - both the numbers and the rapport of the people in that crowd.</strong> There was no violence, it was orderly. So yes,<strong> we are not experiencing the best times but there is there is reason to hope that that we will see a better day</strong>.&quot;</p> </blockquote> <p>Of course, take all of her comments with a pinch of liberal salt as Trump tweeted - <em><u><strong>&quot;Her mind is shot &mdash; resign.&quot;</strong></u></em></p> <p>Trump may have to wait a lot longer...</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;At my age you have to take it year by year. I know I&#39;m OK. What will be next year?&quot;</p> <p>&nbsp;</p> <p><em><strong>&quot;I&#39;m hopeful however, because my most senior colleague the one who most recently retired, Justice John Paul Stevens, stepped down at age 90. So I have a way to go.&quot;</strong></em></p> </blockquote> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="216" height="128" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170224_ginsburg.jpg?1487954519" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/justice-ginsburg-praises-free-press-says-not-best-times-america#comments Business Business career of Donald Trump Congress Donald Trump Donald Trump Donald Trump presidential campaign International reactions to the United States presidential election New York Times Phi Kappa Phi Politics of the United States Ruth Bader Ginsburg Supreme Court Supreme Court of the United States United States Fri, 24 Feb 2017 22:55:00 +0000 Tyler Durden 588929 at http://www.zerohedge.com Reddit Caught Censoring Posts Using The Term “Rothschild” http://www.zerohedge.com/news/2017-02-24/reddit-caught-censoring-posts-using-term-%E2%80%9Crothschild%E2%80%9D <p style="margin-top: 0px; margin-bottom: 28px; color: #1a1a1a; font-family: Merriweather, Georgia, serif; font-size: 16px;">It's the latest&nbsp;chapter of the long, documented saga of&nbsp;<a href="http://archive.is/1QaQl" target="_blank" style="box-shadow: currentcolor 0px 1px 0px 0px; color: #007acc;">Reddit censorship</a>&nbsp;against&nbsp;<a href="http://archive.is/D61ap" target="_blank" style="box-shadow: currentcolor 0px 1px 0px 0px; color: #007acc;">various forms of political speech</a>&nbsp;over the past several years. In a humorous development, Reddit's admin team has been caught censoring posts using the term "Rothschild."</p> <p style="margin-top: 0px; margin-bottom: 28px; color: #1a1a1a; font-family: Merriweather, Georgia, serif; font-size: 16px;">Users on pro-Trump subreddit r/the_donald began noticing the censorship several days ago after a humorous&nbsp;<a href="http://archive.is/Nzs3G" target="_blank" style="box-shadow: currentcolor 0px 1px 0px 0px; color: #007acc;">tweet</a>&nbsp;from Lynn de Rothschild on February 21st, 2017 lampooned John Podesta for his work managing Hillary Clinton's 2016 presidential election campaign. A test conducted by Disobedient Media on February 23rd has confirmed that Reddit is indeed censoring content referencing the name of the famous banking family.</p> <p style="margin-top: 0px; margin-bottom: 28px; color: #1a1a1a; font-family: Merriweather, Georgia, serif; font-size: 16px;">A&nbsp;sample post referencing the term was&nbsp;<a href="http://archive.is/W8UUX" target="_blank" style="box-shadow: currentcolor 0px 1px 0px 0px; color: #007acc;">immediately archived</a>&nbsp;after submission. Despite being posted "just now" or under one minute prior, the archive revealed that a filter on Reddit had removed the text of the post and hidden it from the "new" section of r/the_donald. The original post and the text can be seen here:</p> <p style="margin-top: 0px; margin-bottom: 28px; color: #1a1a1a; font-family: Merriweather, Georgia, serif; font-size: 16px;"><img src="http://disobedientmedia.com/wp-content/uploads/2017/02/Screen-Shot-2017-02-24-at-2.10.04-PM-1024x696.png" width="500" height="340" style="height: auto; max-width: 100%; vertical-align: middle; display: block; margin-right: auto; margin-bottom: 28px; margin-left: auto; clear: both;" class="aligncenter wp-image-1394" /></p> <p style="margin-top: 0px; margin-bottom: 28px; color: #1a1a1a; font-family: Merriweather, Georgia, serif; font-size: 16px;">When the account which made the post is logged in, the original text still appears in the body as if the post was not censored. This means that a user might not immediately notice that their posting had been removed.</p> <p style="margin-top: 0px; margin-bottom: 28px; color: #1a1a1a; font-family: Merriweather, Georgia, serif; font-size: 16px;">It is not known at this time why Reddit is&nbsp;censoring posts referencing the Rothschild family name.</p> <p style="margin-top: 0px; margin-bottom: 28px; color: #1a1a1a; font-family: Merriweather, Georgia, serif; font-size: 16px;"><em>Editor's Note: Other&nbsp;<a href="http://archive.is/uVTXI" target="_blank" style="box-shadow: currentcolor 0px 1px 0px 0px; color: #007acc;">posts</a>&nbsp;around Reddit appear to not be censored, indicating that the script removing post information mentioning the term "Rothschild"&nbsp;may be targeting r/the_donald exclusively. Reddit's admin team and CEO&nbsp;<a href="http://archive.is/DdvAq" target="_blank" style="box-shadow: currentcolor 0px 1px 0px 0px; color: #007acc;">Steve Huffman</a>&nbsp;have singled the pro-Trump subreddit out exclusively for censorship in the past.</em></p> <div class="field field-type-filefield field-field-image-blog"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_blog" width="1600" height="900" alt="" src="http://www.zerohedge.com/sites/default/files/images/user240135/imageroot/150716-reddit.png?1487976551" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/reddit-caught-censoring-posts-using-term-%E2%80%9Crothschild%E2%80%9D#comments /r/The Donald 201 Censoring Censorship Computing Crowdsourcing Digital media Mass media Reddit Rothschild family Social bookmarking Steve Huffman Virtual communities Web 2.0 Wikis World Wide Web Fri, 24 Feb 2017 22:49:14 +0000 William Craddick 588939 at http://www.zerohedge.com Which Country Punishes Productive People The Most? http://www.zerohedge.com/news/2017-02-24/which-country-punishes-productive-people-most <p><a href="https://fee.org/articles/which-country-punishes-productive-people-the-most/"><em>Submitted by Daniel Mitchell via The Foundation for Economic Education,</em></a></p> <p>Back in 2014, I <a href="https://danieljmitchell.wordpress.com/2014/09/25/mirror-mirror-on-the-wall-which-nation-and-state-punish-success-most-of-all/">shared some data</a> from the Tax Foundation that measured the degree to which various developed nations <a href="https://danieljmitchell.wordpress.com/2014/10/21/the-real-world-impact-of-higher-tax-rates-on-upper-income-households/">punished high-income earners</a>.</p> <p><strong>This measure of relative &ldquo;progressivity&rdquo; focused on personal income taxes.</strong> And that&rsquo;s important because that levy often is the most onerous for highly productive residents of a nation.</p> <p><strong>But there are other taxes that also create a gap between what such taxpayers earn and produce and what they ultimately are able to consume and enjoy. </strong>What about the effects of payroll taxes? Of consumption taxes and other levies?</p> <h3><u><strong>Looking at the Evidence</strong></u></h3> <p>To answer that question, we have a <a href="http://www.epicenternetwork.eu/wp-content/uploads/2017/02/The-taxation-of-high-income-earners.pdf">very useful study</a> from the European Policy Information Center on this topic. Authored by Alexander Fritz Englund and Jacob Lundberg, it looks at the total marginal tax rate on each nation&rsquo;s most productive taxpayers.</p> <p>They start with some sensible observations about why marginal tax rates matter, basically echoing what <a href="https://danieljmitchell.wordpress.com/2016/02/07/the-super-bowl-and-marginal-tax-rates/">I wrote</a> after last year&rsquo;s Super Bowl.</p> <p>Here&rsquo;s what Englund and Lundberg wrote.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The marginal tax rate is the proportion of tax paid on the last euro earned. It is the relevant tax rate when deciding whether to work a few extra hours or accept a promotion, for example. As most income tax systems are progressive, the marginal tax rate on top incomes is usually also the highest marginal tax rate. It is an indicator of how progressive and distortionary the income tax is.&rdquo;</p> </blockquote> <p>They then explain why they include payroll taxes in their calculations.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>The income tax alone does not provide a complete picture of how the tax system affects incentives to work and earn income. Many countries require employers and/or employees to pay social contributions. It is not uncommon for the associated benefits to be capped while the contribution itself is uncapped, meaning it is a de facto tax for high-income earners. Even those social contributions that are legally paid by the employer will in the end be paid by the employee as the employer should be expected to shift the burden of the tax through lower gross wages.&rdquo;</p> </blockquote> <p><strong>Englund and Lundberg are correct. A payroll tax (sometimes called a &ldquo;social insurance&rdquo; levy) will be just as destructive as a regular income tax if workers aren&rsquo;t &ldquo;earning&rdquo; some sort of additional benefit. </strong>And they&rsquo;re also right when they point out that payroll taxes &ldquo;paid&rdquo; by employers actually are borne by workers.</p> <p>They then explain why they include a measure of consumption taxation.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>One must also take value-added taxes and other consumption taxes into account. Consumption taxes reduce the purchasing power of wage-earners and thus affect the return to working. In principle, it does not matter whether taxation takes place when income is earned or when it is consumed, as the ultimate purpose of work is consumption.&rdquo;</p> </blockquote> <p>Once again, the authors are spot on.<strong> Taxes <a href="https://danieljmitchell.wordpress.com/2014/09/01/the-punitive-economic-cost-of-class-warfare-taxation/">undermine incentives to be productive</a> by driving a wedge between pre-tax income and post-tax consumption, so you have to look at levies that grab your income as it is earned as well as levies that grab your income as it is spent.</strong></p> <h3><u><strong>All Things Considered</strong></u></h3> <p><strong>And when you begin to add everything together, you get the most accurate measure of government greed.</strong></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Taking all these taxes into account, one can compute the effective marginal tax rate. This shows how many cents the government receives for every euro of additional employee compensation paid by the firm. &hellip;If the top effective tax rate is 75 percent, as in Sweden, a person who contributes 100 additional euros to the economy will only be allowed to keep 25 euros while 75 euros are appropriated by the government. The tax system thus drives a wedge between the social and private return to work. &hellip;High marginal tax rates disconnect the private and social returns to economic activity and thereby the invisible hand ceases to function. For this reason, taxation causes distortions and is costly to society. High marginal tax rates make it less worthwhile to supply labour on the formal labour market and more worthwhile to spend time on household work, black market activities and tax avoidance.&rdquo;</p> </blockquote> <p>Here&rsquo;s their data for various developed nations.</p> <p>Keep in mind that these are the taxes that impact each nation&rsquo;s most productive taxpayers. So that includes top income tax rates, both for the central governments and sub-national governments, as well as surtaxes. It includes various social insurance levies, to the extent such taxes apply to all income. And it includes a measure of estimated consumption taxation.</p> <p><img src="https://fee.org/media/21072/rich-tax-table-2.jpg?width=663&amp;height=695" style="height: 629px; width: 600px;" /></p> <p><strong>And here&rsquo;s the ranking of all the nations. Shed a tear for entrepreneurs in Sweden, Belgium, and Portugal.</strong></p> <p>Slovakia wins the prize for the least-punitive tax regime, though it&rsquo;s worth noting that <a href="https://danieljmitchell.wordpress.com/2014/10/14/hong-kongs-remarkable-fiscal-policy/">Hong Kong easily would have the best system</a> if it was included in the ranking.</p> <p><img src="https://fee.org/media/21071/rich-tax-table-1.jpg?width=594&amp;height=661" style="height: 668px; width: 600px;" /></p> <h3><u><strong>U.S. Ranking</strong></u></h3> <p><strong>For what it&rsquo;s worth, the United States does fairly well compared to other nations.</strong> This is <a href="https://danieljmitchell.wordpress.com/2016/08/17/hillary-clinton-willie-sutton-and-class-warfare-tax-policy/">not because</a> our personal income tax <a href="https://danieljmitchell.wordpress.com/2016/04/13/three-simple-reasons-why-hillary-and-bernies-real-plan-is-to-soak-the-middle-class/">is reasonable</a> (see dark blue bars), but rather because <a href="https://danieljmitchell.wordpress.com/2011/04/22/obamas-embraces-another-class-warfare-proposal-tax-the-rich-is-the-universal-cure/">Barack Obama</a> and <a href="https://danieljmitchell.wordpress.com/2015/08/15/hillarys-hard-left-turn-on-social-security/">Hillary Clinton</a> were unsuccessful in their efforts to bust the &ldquo;wage base cap&rdquo; and apply the Social Security payroll tax on all income. We also <a href="https://danieljmitchell.wordpress.com/2016/01/14/the-value-added-tax-should-be-political-poison-for-advocates-of-limited-government/">thankfully don&rsquo;t have</a> a <a href="https://danieljmitchell.wordpress.com/2009/10/14/a-vat-would-finance-the-road-to-serfdom/">value-added tax</a>. These factors explain why our medium-blue and light-blue bars are the smallest.</p> <p>By the way, this doesn&rsquo;t mean we have a friendly system for upper-income taxpayers in America. They lose almost half of every dollar they generate for the economy. And whether one is looking at <a href="https://danieljmitchell.wordpress.com/2015/01/02/whats-a-fair-share-for-upper-income-taxpayers/">Tax Foundation numbers</a>, <a href="https://danieljmitchell.wordpress.com/2016/07/02/since-they-finance-the-welfare-state-leftists-should-be-nice-to-rich-people/">Congressional Budget Office calculations</a>, <a href="https://danieljmitchell.wordpress.com/2015/10/20/a-much-needed-economics-math-and-logic-lesson-for-the-new-york-times/">information from</a> the <em>New York Times</em>, or <a href="https://danieljmitchell.wordpress.com/2015/05/29/even-the-irs-admits-that-the-tax-code-is-very-biased-against-successful-taxpayers/">data from the IRS</a>, rich people in the United States are paying a hugely disproportionate share of the tax burden.</p> <p><strong>Though <a href="https://danieljmitchell.wordpress.com/2015/06/07/honest-leftist-admits-desire-for-spite-drive-tax-policy/">none of this satisfies the statists</a>. They actually would like us to think that letting well-to-do taxpayers keep any of their money is <a href="https://danieljmitchell.wordpress.com/2015/04/19/in-the-lefts-orwellian-world-taxpayers-who-get-to-keep-their-income-are-getting-handouts/">akin to a handout</a>.</strong></p> <p>Now would be an appropriate time to remind everyone that imposing high tax rates <a href="https://danieljmitchell.wordpress.com/2016/03/29/tax-the-rich-delusions-from-hillary-and-bernie/">doesn&rsquo;t necessarily mean</a> collecting high tax revenues.</p> <p>In the 1980s, for instance, upper-income taxpayers <a href="https://danieljmitchell.wordpress.com/2011/11/06/a-lesson-on-the-laffer-curve-for-barack-obama/">paid far more revenue to the government</a> when Reagan lowered the top income tax rate from 70 percent to 28 percent.</p> <p>Also, keep in mind that these calculations don&rsquo;t measure the <a href="https://danieljmitchell.wordpress.com/2015/04/14/tax-policy-double-taxation-tax-reform-and-the-proper-definition-of-income/">tax bias against saving and investment</a>, so the tax burden on some upper-income taxpayers may be higher or lower depending on the degree to which countries penalize capital formation.</p> <p><em>P.S. If one includes the perverse incentive effects of various redistribution programs, the very highest marginal tax rates (at least when measuring implicit rates) sometimes <a href="https://danieljmitchell.wordpress.com/2012/07/13/a-picture-of-how-redistribution-programs-trap-the-less-fortunate-in-lives-of-dependency/">apply to a nation&rsquo;s poor people</a>.</em></p> <p><em>P.P.S. Our statist friends sometimes justify punitive taxes as a way of <a href="https://danieljmitchell.wordpress.com/2017/01/12/the-lefts-siren-song-of-coerced-equality/">using coercion</a> to produce more equality, but <a href="https://danieljmitchell.wordpress.com/2016/02/22/leftist-tax-policy-shoot-at-the-rich-wound-the-poor/">the net effect of such policies</a> is weaker growth and that means it is <a href="https://danieljmitchell.wordpress.com/2015/01/20/obamas-class-warfare-tax-plan-targets-the-so-called-rich-but-workers-will-bear-the-burden/">more difficult</a> for lower-income and middle-income people to climb the economic ladder. In other words, unfettered markets are <a href="https://danieljmitchell.wordpress.com/2016/02/11/economic-mobility-class-warfare-and-poverty/">the best way</a> to get social mobility.</em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="285" height="158" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170224_tax.jpg?1487952797" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/which-country-punishes-productive-people-most#comments Barack Obama Belgium Business Capital Formation Congressional Budget Office Congressional Budget Office Consumption tax Economy European Policy Information Center Flat tax Foundation for Economic Education Hong Kong Income tax Income tax in the United States Internal Revenue Service Labor Market economics) New York Times None Payroll tax Personal Income Portugal Public economics Purchasing Power Regressive tax Slovakia Social Issues Tax Tax Foundation Tax incidence Value-added tax Fri, 24 Feb 2017 22:30:00 +0000 Tyler Durden 588928 at http://www.zerohedge.com Starbucks' 'Brand Perception' Takes A Massive Hit After Announcing Plans To Hire 10,000 Refugees http://www.zerohedge.com/news/2017-02-24/starbucks-brand-perception-takes-massive-hit-after-announcing-plans-hire-10000-refug <p>About a month ago, <strong>Starbucks CEO Howard Schultz decided to 'take a stand' in defiance of Trump's immigration executive order</strong> and penned a message to the world vowing, among other things, to <strong>hire 10,000 refugees over the next 5 years and "build bridges, not walls, with Mexico"</strong>.&nbsp; Here are some excerpts from the <a href="https://news.starbucks.com/news/living-our-values-in-uncertain-times">politically charged message</a> drafted by Schultz with <strong>"deep concern and a heavy heart"</strong>:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>I write to you today with deep concern, a heavy heart and a resolute promise. Let me begin with the news that is immediately in front of us: <strong>we have all been witness to the confusion, surprise and opposition to the Executive Order that President Trump issued on Friday, effectively banning people from several predominantly Muslim countries from entering the United States, including refugees fleeing wars</strong>. I can assure you that our Partner Resources team has been in direct contact with the partners who are impacted by this immigration ban, and we are doing everything possible to support and help them to navigate through this confusing period.</p> <p>&nbsp;</p> <p><strong>Hiring Refugees</strong>: We have a long history of hiring young people looking for opportunities and a pathway to a new life around the world. This is why we are <strong>doubling down</strong> on this commitment by working with our equity market employees as well as joint venture and licensed market partners in a <strong>concerted effort to welcome and seek opportunities for those fleeing war, violence, persecution and discrimination</strong>.&nbsp; There are more than 65 million citizens of the world recognized as refugees by the United Nations, and we are <strong>developing plans to hire 10,000 of them over five years</strong> in the 75 countries around the world where Starbucks does business.</p> <p>&nbsp;</p> <p><strong>Building Bridges, Not Walls, With Mexico:</strong> We have been open for business in Mexico since 2002, and have since opened almost 600 stores in 60 cities across the country, which together employ over 7,000 Mexican partners who proudly wear the green apron. Coffee is what unites our common heritage, and as I told Alberto Torrado, the leader of our partnership with Alsea in Mexico, we stand ready to help and support our Mexican customers, partners and their families as they navigate what impact proposed trade sanctions, immigration restrictions and taxes might have on their business and their trust of Americans.</p> </blockquote> <p>Unfortunately, Schultz quickly found out the hard way that while most adult-aged Americans can agree that they like coffee, <strong>roughly 50% disagree with his leftist political opinions</strong>.&nbsp; Which, according to <a href="http://finance.yahoo.com/news/starbucks-brand-perception-plummeted-since-220353319.html">Yahoo Finance</a>, has sent the company's "brand perception" into a downward spiral since January 29th.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The coffee giant's <strong>consumer perception levels have fallen by two-thirds since late January, according to YouGov BrandIndex.</strong></p> <p>&nbsp;</p> <p>The perception tracker measures if respondents have "heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative." <strong>In Starbucks' case, perception is still overall positive, but significantly lower than it was prior to CEO Howard Schultz published a public letter outlining the company's plans to give refugees jobs.</strong></p> <p>&nbsp;</p> <p><strong>YouGov says that there's reason to believe backlash will impact the chain's bottom line. </strong>Two days before Starbucks' announcement, 30% of consumers said they'd consider buying from Starbucks the next time they were craving coffee, the highest proportion in nearly a year. Now, the percentage is down to 24%, according to YouGov. </p> </blockquote> <p><a href="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/02/24/2017.02.24%20-%20SBUX%201.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/02/24/2017.02.24%20-%20SBUX%201_0.jpg" alt="SBUX" width="600" height="369" /></a></p> <p>&nbsp;</p> <p>Of course, this isn't the only time Starbucks has alienated customers by publicly pursuing a controversial political agenda.&nbsp; As we <a href="http://www.zerohedge.com/news/2015-03-22/it-racist-starbucks-gives-trying-solve-americas-other-great-divide">noted back in March 2015</a>, the Company was forced to abandon its <strong>"Race Together" </strong>campaign that was intended<strong> "to be a catalyst for a larger conversation on race"</strong> relations in the United States but really just served to piss off a bunch of anxious people eager to grab their cup of coffee and be on their way.</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/02/24/2017.02.24%20-%20SBUX%20Race_0.JPG" alt="SBUX" width="550" height="370" /></p> <p>&nbsp;</p> <p>Apparently nothing will ever convince some of America's leftist billionaires that, no matter how rich they become, they will never be able to force their political opinions on Americans who see through their propaganda...just ask all the rich people that just lost a fortune trying to elect Hillary.</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="514" height="301" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017.02.24%20-%20SBUX%20Tease.JPG?1487962205" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/starbucks-brand-perception-takes-massive-hit-after-announcing-plans-hire-10000-refug#comments Coffee Coffee in Seattle Food and drink Howard Schultz Illegal immigration Mexico Seattle Social Issues Starbucks United Nations Fri, 24 Feb 2017 22:05:00 +0000 Tyler Durden 588918 at http://www.zerohedge.com CNN Responds To Being Blocked From White House Press Briefing http://www.zerohedge.com/news/2017-02-24/cnn-responds-being-blocked-white-house-press-briefing <p>Predictably, those members of the media who were locked out of a Q&amp;A session with White House spokesman Sean Spicer, have reacted furiously, led by CNN who on Friday sharply condemned the White House's decision to block it and several other outlets.</p> <p>"This is an unacceptable development by the Trump White House. Apparently this is how they retaliate when you report facts they don't like. We'll keep reporting regardless," CNN said in a statement.</p> <blockquote class="twitter-tweet"><p dir="ltr" lang="en">CNN was blocked from WH <a href="https://twitter.com/PressSec">@PressSec</a>'s media gaggle today. This is our response: <a href="https://t.co/8SfY2uYKEI">pic.twitter.com/8SfY2uYKEI</a></p> <p>— CNN Communications (@CNNPR) <a href="https://twitter.com/CNNPR/status/835211808671744001">February 24, 2017</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>As discussed previously, on Friday afternoon Spicer held an off-camera "gaggle" with reporters in his West Wing office, as opposed to the regular briefing in the White House briefing room. CNN, together with the New York Times, The Hill, Politico, BuzzFeed and the Los Angeles Times, was barred from the briefing, while outlets such as ABC, CBS, NBC, Fox, Reuters, Bloomberg, McClatchy and Breitbart, The Washington Times and One America News Network were all allowed in.</p> <p>The hand-picked gaggle came hours after President Trump lashed out at the press during his speech at the Conservative Political Action Conference (CPAC) in Maryland, telling the audience, "I want you all to know that we are fighting the fake news," a term he has used toward both CNN and The New York Times.</p> <p>"I called the fake news the enemy of the people," Trump told CPAC. "They are the enemy of the people, because they have no sources. They just make them up when there are none."</p> <p>Since neither Trump, nor CNN or any other media outlets are likely to de-escalate, we look forward to finding what mushroom clouds this particular nuclear war between the Trump administration and the "enemy of the people" press will bring. We certainly anticipate an angry Trump tweet in the most immediate future. </p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="399" height="214" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/20170119_CNN1.jpg?1487972269" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/cnn-responds-being-blocked-white-house-press-briefing#comments Alt-right American people of German descent American studies Breitbart News Business CNN Conservatism in the United States Donald Trump Entertainment NBC New York Times None Politics of the United States Reuters The Apprentice Trump Administration Twitter Twitter White House White House Fri, 24 Feb 2017 21:38:37 +0000 Tyler Durden 588927 at http://www.zerohedge.com Weekend Reading: Errant Thinking http://www.zerohedge.com/news/2017-02-24/weekend-reading-errant-thinking <p><a href="https://realinvestmentadvice.com/weekend-reading-errant-thinking/"><em>Submitted by Lance Roberts via RealInvestmentAdvice.com,</em></a></p> <p><em><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_RIA.jpg"><img height="332" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_RIA_0.jpg" width="600" /></a></em></p> <p>Last week, I penned a post entitled <a href="https://realinvestmentadvice.com/you-cant-time-the-market/" target="_blank"><em>&ldquo;You Can&rsquo;t Time The Market?&rdquo;</em></a> which was subsequently picked up on the <a href="http://www.seekingalpha.com" target="_blank">Seeking Alpha</a> website. It is always interesting for me to read the comments on the articles as it gives me a lot of insight as to the psychology of individuals currently investing in the markets. <strong>Specifically, it also tells me much about individuals who have never been through a <em>&ldquo;reversion&rdquo;</em> in the markets. </strong></p> <p>The article was addressing an individual&rsquo;s ability to capture the upside in the market while missing a bulk of the downside by employing even a simple moving average strategy. To wit:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>&ldquo;While there are many sophisticated methods of handling risk within a portfolio, even using a basic method of price analysis, such as a moving average crossover, can be a valuable tool over the long term holding periods. <strong>Will such a method ALWAYS be right? Absolutely not. However, will such a method keep you from losing large amounts of capital? Absolutely.&rdquo;</strong></em></p> </blockquote> <p><a href="http://realinvestmentadvice.com/wp-content/uploads/2013/09/SP500-Simple-Crossover-Study-022017.png"><img class="alignnone size-full wp-image-19637" src="http://realinvestmentadvice.com/wp-content/uploads/2013/09/SP500-Simple-Crossover-Study-022017.png" style="width: 600px; height: 330px;" /></a></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>&ldquo;By using some measures, fundamental or technical, to reduce portfolio risk by taking profits as prices/valuations rise, or vice versa, the long-term results of avoiding periods of severe capital loss will outweigh missed short term gains. <strong>Small adjustments can have a significant impact over the long run.&rdquo;</strong></em></p> </blockquote> <p>Of course, this is where, despite seeing the chart posted above, this comment was left.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><span style="color: #993300;"><em>&ldquo;Completely disagree since the market can trade at or near a record top for months or years. Yes, much of the time. Check a monthly chart of SPX. &ldquo;</em></span></p> </blockquote> <p>Okay,&nbsp;we can do that. As shown, while markets during the FIRST HALF of the market cycle can certainly elevate to extremely overvalued levels as exuberance displaces underlying fundamentals, <strong>the SECOND HALF takes generally wipes out all of the gains from previous break-even levels.</strong></p> <p><a href="http://realinvestmentadvice.com/wp-content/uploads/2017/02/SP500-Time-To-Recovery-022317.png"><img class="alignnone size-full wp-image-19676" src="http://realinvestmentadvice.com/wp-content/uploads/2017/02/SP500-Time-To-Recovery-022317.png" style="width: 600px; height: 369px;" /></a></p> <p>Unfortunately, given the fact that investors don&rsquo;t live forever, unless they have contracted vampirism along the way, the issue of time horizons are a major problem of the recovery process.</p> <p><strong>It is this errant thinking that continually leads investors to believe that somehow this time is different.</strong></p> <p>While exuberance in the markets currently reigns as prices continue to reflect economic and fundamental perfection, this time is likely no different than the last.<strong> The only difference will be that those with experience will leave the markets with the money from those whom will ultimately gain the experience.</strong></p> <p>In the meantime, here is what I am reading this weekend.</p> <hr /> <h2><strong>Fed/Economy</strong></h2> <ul> <li><strong><span style="color: #000000;"><span style="color: #ff0000;">Culture Shock</span>&nbsp;</span></strong><a href="http://dimartinobooth.com/fed-culture-shock/" target="_blank">by Danielle DiMartino-Booth via Money Strong</a></li> <li><strong>Trump Putting Off One Of His Biggest Promises Till 2018&nbsp;</strong><a href="http://www.businessinsider.com/trump-reportedly-moving-infrastructure-investment-to-2018-2017-2" target="_blank">by Bob Bryan via BI</a></li> <li><strong><span style="color: #ff0000;">Trump Is In The Wrong Place At The Wrong Time&nbsp;</span></strong><a href="http://www.businessinsider.com/trump-in-wrong-place-at-wrong-time-when-it-comes-to-the-stock-market-2017-2" target="_blank">by Frank Chaparro via BI</a></li> <li><strong><span style="color: #000000;">Regulations Are Stifling&nbsp;Business&nbsp;</span></strong><a href="http://www.washingtontimes.com/news/2017/feb/19/federal-regulation-is-stifling-business/" target="_blank">by Stephen Moore via The Washington Times</a></li> <li><strong>Trump Needs To Build On Market Gains&nbsp;</strong><a href="http://nypost.com/2017/02/18/its-time-for-trump-to-realize-these-two-campaign-goals/" target="_blank">by Jonathon Trugman via NY Post</a></li> <li><strong>Trump Is Wrong, Banks ARE Lending&nbsp;</strong><a href="https://www.nytimes.com/2017/02/18/business/yes-mr-president-banks-are-lending.html" target="_blank">by Gretchen Morgenson via NYT</a></li> <li><span style="color: #ff0000;"><strong>The Inherent Asymmetry In The Fed&rsquo;s Policy</strong></span>&nbsp;<a href="http://www.marketwatch.com/story/the-inherent-asymmetry-in-the-feds-monetary-policy-2017-02-22" target="_blank">by Caroline Baum via MarketWatch</a></li> <li><strong>The Great Disruptor Strikes Again&nbsp;</strong><a href="https://dailyreckoning.com/great-disrupter-strikes/" target="_blank">by David Stockman via Daily Reckoning</a></li> <li><span style="color: #ff0000;"><strong><span style="color: #000000;">Job Creation Has Nothing To Do With Trump </span></strong></span><a href="http://www.realclearmarkets.com/articles/2017/02/21/current_job_creation_has_nothing_to_do_with_trumps_policies_102553.html" target="_blank">by Isabel Sawhill via Real Clear Markets</a></li> <li><strong>GDP: Can Trump Deliver 4%</strong>&nbsp;<a href="http://www.thefiscaltimes.com/2017/02/14/Can-Trump-Deliver-4-Growth-Why-Most-Economists-Say-Not-Year" target="_blank">by Anu Bararia via The Fiscal Times</a></li> <li><strong>Why Do Republicans Think They Can Deliver GDP Growth?</strong> <a href="https://www.nytimes.com/2017/02/20/opinion/on-economic-arrogance.html?_r=0" target="_blank">by Paul Krugman via NYT</a></li> <li><strong>1986 &ndash; The Last Tax Overhaul</strong>&nbsp;<a href="https://www.bloomberg.com/view/articles/2017-02-21/it-s-been-31-years-since-the-last-tax-overhaul-here-s-why" target="_blank">by Albert Hunt via Bloomberg</a></li> <li><strong><span style="color: #000000;">The Contradiction At The Heart Of Trump&rsquo;s Policies</span>&nbsp;</strong><a href="https://www.washingtonpost.com/news/wonk/wp/2017/02/17/a-contradiction-at-the-heart-of-president-trumps-economic-policy/?utm_term=.f1f0dc6cf7b6" target="_blank">by Ana Swanson via WonkBlog</a></li> </ul> <hr /> <h2><strong>Markets</strong></h2> <ul> <li><span style="color: #ff0000;"><strong>Warning Signs Are Piling Up&nbsp;</strong></span><a href="http://www.businessinsider.com/warnings-signs-bull-market-in-stocks-coming-to-end-2017-2" target="_blank">by Frank Chaparro via BI</a></li> <li><strong>Bull Market For Junk Bonds</strong>&nbsp;<a href="http://www.capitalspectator.com/a-bull-market-for-junk-bonds-as-interest-rates-rise/" target="_blank">by James Picerno via Capital Spectator</a></li> <li><strong>The Rally In Stocks Is Doomed</strong>&nbsp;<a href="http://wolfstreet.com/2017/02/22/goldman-sachs-negative-on-rally-in-stocks-tax-reform/" target="_blank">by Wolf Richter via Wolf Street</a></li> <li><strong><span style="color: #000000;">The Case For Dow 30,000 Has&nbsp;</span><span style="color: #000000;">Strengthened</span>&nbsp;</strong><a href="http://www.marketwatch.com/story/heres-the-case-for-dow-30000-in-trumps-first-term-2017-02-17" target="_blank">by Nigam Arora via MarketWatch</a></li> <li><strong>This Contradiction Has Everyone At Odds&nbsp;</strong><a href="http://finance.yahoo.com/news/this-big-contradiction-has-everyone-in-the-stock-market-at-odds-135523774.html" target="_blank">by Sam Ro via Yahoo Finance</a></li> <li><strong>Market Timing Out Of Favor? Might Be A Sign.&nbsp;</strong><a href="http://www.marketwatch.com/story/market-timing-is-out-of-favor-so-is-a-stock-market-top-near-2017-02-21?mod=MW_story_top_stories" target="_blank">by Mark Hulbert via MarketWatch</a></li> <li><span style="color: #000000;"><span style="color: #ff0000;"><strong>Stocks: High Risk Of Disappointment</strong></span>&nbsp;</span><a href="http://www.economist.com/blogs/buttonwood/2017/02/recovery-trade?fsrc=rss" target="_blank">by Buttonwood via The Economist</a></li> <li><strong><span style="color: #000000;">Oil Going To $70 Or $30</span>&nbsp;</strong><a href="http://oilprice.com/Energy/Oil-Prices/Oil-To-70-Or-Down-To-30.html" target="_blank">by Nick Cunningham via OilPrice.com</a></li> <li><strong><span style="color: #000000;">Yellen To WallStreet: Slow It Down</span>&nbsp;</strong><a href="http://www.marketwatch.com/story/is-yellen-trolling-trump-and-stock-market-investors-2017-02-22" target="_blank">by Mark DeCambre via MarketWatch</a></li> <li><span style="color: #000000;"><strong>This Bull Market May Soon Hit Resistance</strong></span> <a href="http://www.barrons.com/articles/why-the-bull-market-may-soon-be-hitting-resistance-1487888165?mod=BOL_columnist_latest_col_art&amp;mg=id-barrons" target="_blank">by Michael Kahn via Barron&rsquo;s</a></li> <li><span style="color: #000000;"><strong>Is The Trump Stock Bubble Ready To Bust? </strong></span><a href="http://www.vanityfair.com/news/2017/02/is-the-trump-stock-bubble-ready-to-burst" target="_blank">by Bress Levin via Vanity Fair</a></li> <li><span style="color: #ff0000;"><strong>Only Blind Faith Could Have Me Long This Market</strong></span>&nbsp;<a href="http://www.realclearmarkets.com/articles/2017/02/23/only_blind_faith_could_bring_me_to_be_long_this_market_102559.html" target="_blank">by Doug Kass via Real Clear Markets</a></li> <li><span style="color: #000000;"><strong>Dow 21,000 Masks Stocks Being Left Behind</strong></span>&nbsp;<a href="http://www.thefiscaltimes.com/Columns/2017/02/22/Dow-21000-Sight-Many-Stocks-Are-Getting-Left-Behind" target="_blank">by Anthony Mirhaydari via Fiscal Times</a></li> <li><strong>Why Investors Shouldn&rsquo;t Just &ldquo;Buy Everything&rdquo;</strong>&nbsp;<a href="http://www.marketwatch.com/story/why-investors-shouldnt-just-buy-everything-2017-02-22" target="_blank">by Joseph Adinolfi via MarketWatch</a></li> <li><strong>Too Far Too Fast?</strong>&nbsp;<a href="http://money.cnn.com/2017/02/22/investing/stock-market-rally-risks-trump-brexit-le-pen/index.html?iid=hp-toplead-dom" target="_blank">by Paul La Monica via CNN Money</a></li> </ul> <hr /> <h2>Research&nbsp;/ Interesting&nbsp;Reads</h2> <ul> <li><strong><span style="color: #ff0000;">Chicago Fed: Economy Has Been Stalling</span>&nbsp;</strong><a href="https://www.hvst.com/posts/86927-chicago-fed-economy-has-been-stalling-over-past-year" target="_blank">by Jeff Seymour via HVST.com</a></li> <li><span style="color: #000000;"><strong>The Flip Side Of Interest Rates</strong></span> <a href="https://ftalphaville.ft.com/2017/02/17/2184642/the-long-rise-in-profits-is-mostly-just-the-flip-side-of-falling-interest-rates/">by Matthew Klein via FT Alphaville</a></li> <li><span style="color: #000000;"><strong>Millennials Becoming More Socialist&nbsp;</strong></span><a href="http://www.thedailybeast.com/articles/2017/02/19/the-screwed-generation-turns-socialist.html" target="_blank">by Joel Kotkin via The Daily Beast</a></li> <li><strong>How The Fed Is Gaslighting You</strong> <a href="http://gubbmintcheese.blogspot.ca/2017/02/the-feds-playbook-uncovered-gaslighting.html" target="_blank">by Mike aka Gubbmintcheese</a></li> <li><span style="color: #ff0000;"><strong>Lies, Damn Lies &amp; Taxes</strong></span>&nbsp;<a href="http://www.realclearmarkets.com/articles/2017/02/15/lies_damn_lies_and_taxes_102543.html" target="_blank">by Marc Chandler via Real Clear Markets</a></li> <li><strong><span style="color: #000000;">You Should Be Afraid Of FaceBook</span>&nbsp;</strong><a href="https://www.bloomberg.com/view/articles/2017-02-17/mark-zuckerberg-s-manifesto-for-facebook-offers-a-social-dystopia" target="_blank">by Leonid Bershidsky via Bloomberg</a></li> <li><strong>Debunking Myths Of IRA&rsquo;s&nbsp;</strong><a href="http://www.usatoday.com/story/money/personalfinance/retirement/2017/01/15/3-ira-myths-debunked/96436400/" target="_blank">by Maurie Backman via USA Today</a></li> <li><strong><span style="color: #000000;">Cash-Out Refinancing Signs Of Trouble</span>&nbsp;</strong><a href="https://www.advisorperspectives.com/articles/2017/02/20/cash-out-refinancing-during-bubble-years-will-lead-to-disaster" target="_blank">by Keith Jurow via Advisor Perspectives</a></li> <li><span style="color: #ff0000;"><strong>The Fed&rsquo;s Credibility Problem </strong></span><a href="http://www.alhambrapartners.com/2017/02/22/fomc-all-those-times-we-said-qe-was-going-to-work-we-really-meant-that-it-could-work/" target="_blank">by Jeffrey Snider via Alhambra Partners</a></li> <li><span style="color: #ff0000;"><strong><span style="color: #000000;">Recession Concerns Grow As Gas Slides By Most In 16 Years</span>&nbsp;</strong></span><a href="http://www.zerohedge.com/news/2017-02-23/recession-concerns-grow-after-gasoline-demand-slides-most-16-years" target="_blank">by Tyler Durden via ZeroHedge</a></li> <li><strong><span style="color: #000000;">Financial Engineering Has Masked Economic Health</span>&nbsp;</strong><a href="http://www.marketwatch.com/story/inside-the-global-elites-bag-of-financial-tricks-2017-02-21" target="_blank">by Satyajit Das via MarketWatch</a></li> <li><strong><span style="color: #000000;">When Speculator Prosper Through Ignorance</span>&nbsp;</strong><a href="http://www.hussmanfunds.com/wmc/wmc170220.htm" target="_blank">by John Hussman via Hussman Funds</a></li> <li><strong><span style="color: #ff0000;">Stocks Boast Record Run Of Buoyant Behavior&nbsp;</span></strong><a href="http://jlfmi.tumblr.com/post/157559563825/stocks-boast-record-run-of-buoyant-behavior" target="_blank">by Dana Lyons via Tumblr</a></li> <li><span style="color: #ff0000;"><strong>What&rsquo;s A Prudent Investor To Do?&nbsp;</strong></span><a href="https://www.thefelderreport.com/2017/02/22/whats-a-prudent-investor-to-do/" target="_blank">by&nbsp;Jesse Felder via The Felder Report</a></li> </ul> <hr /> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div> <p><em><strong><span style="color: #993300;">&ldquo;Stock market bubbles don&rsquo;t grow out of thin air. They have a solid basis in reality, but reality is distorted by a misconception.&rdquo; </span></strong><span style="color: #993300;">&ndash;&nbsp;George Soros</span></em></p> </blockquote> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="711" height="393" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170224_RIA.jpg?1487961179" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/weekend-reading-errant-thinking#comments Business Capitalism Chicago Fed Donald Trump Doug Kass Dow 30 Economic bubble Economy Finance Financial crises Financial market George Soros Gretchen Morgenson Investor John Hussman Krugman MarketWatch Money Paul Krugman Reality recovery Stock market Tyler Durden US Federal Reserve Fri, 24 Feb 2017 21:29:45 +0000 Tyler Durden 588926 at http://www.zerohedge.com Late-Day Panic-Buying Sends Dow To Longest Record Streak In 30 Years http://www.zerohedge.com/news/2017-02-24/late-day-panic-buying-sends-dow-longest-record-streak-30-years <p>Millions of investors cried out today...</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/ZomwVcGt0LE" width="560"></iframe></p> <p>&nbsp;</p> <p>&quot;Pause that refreshes&quot; or &quot;Time to panic&quot;?</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD14.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD14_0.jpg" style="width: 600px; height: 408px;" /></a></p> <p><u><strong>Of course utter panic buying into the close ensure a green close and an 11th record in a row - the longest streak in 30 years - because everyone knows stocks don&#39;t close red into the weekend - </strong></u></p> <p><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD13_0.jpg" style="width: 600px; height: 357px;" /></p> <p><u><strong>The Dow went green for the first time of the day with 17 seconds to the close!</strong></u></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD16.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD16_0.jpg" style="width: 600px; height: 339px;" /></a></p> <p>But this was the <strong>3rd up-week in a row for The Dow</strong> (and 5th up-week in a row for the S&amp;P and Nasdaq). <strong>Biggest weekly drop for Small Caps in 5 weeks</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD15.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD15_0.jpg" style="width: 600px; height: 343px;" /></a></p> <p>&nbsp;</p> <p>After 15 straight days higher, the S&amp;P tech sector suffered its biggest decline of the year...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD3.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD3_0.jpg" style="width: 600px; height: 315px;" /></a></p> <p>&nbsp;</p> <p>Financials worst day in 5 weeks, Goldman worst day in Feb, worst week in 5 weeks...<strong>The Big Banks were all red on the week...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD10.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD10_0.jpg" style="width: 600px; height: 459px;" /></a></p> <p>&nbsp;</p> <p>Stocks and Bonds are both up 5 days in a row...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD12.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD12_0.jpg" style="width: 600px; height: 317px;" /></a></p> <p>This is the 6th day in a row that The Dow and the Long Bond have risen in price together... equal record longest streak (1989 and 1994)</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD17.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD17_0.jpg" style="width: 600px; height: 432px;" /></a></p> <p>&nbsp;</p> <p>But while stocks actually having a down day was briefly possible, it was precious metals that stood out...</p> <p><strong>Gold rose above $1250 this week for the first time since the election</strong> - Gold is up 8 of the last 9 weeks...<strong> Silver is up 9 weeks in a row, back above its 200DMA - longest streak since May 2006</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD1.jpg"><img height="822" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD1_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>Bitcoin hit a new record high...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bit_1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bit_1_0.jpg" style="width: 600px; height: 314px;" /></a></p> <p>&nbsp;</p> <p>Crucially, anxiety in Europe - ignored by most - has sparked panic bids into short-dated German paper</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD4.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD4_0.jpg" style="width: 600px; height: 317px;" /></a></p> <p>&nbsp;</p> <p>Dragging global DM yields lower across the curve...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD5.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD5_0.jpg" style="width: 600px; height: 316px;" /></a></p> <p>&nbsp;</p> <p>Leaving Treasuries &#39;cheapest&#39; to Bunds since 2000...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD6.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD6_0.jpg" style="width: 600px; height: 316px;" /></a></p> <p>&nbsp;</p> <p>Even as 10Y yields tested 3-month lows...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD9.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD9_0.jpg" style="width: 600px; height: 312px;" /></a></p> <p>&nbsp;</p> <p>This was the 10Y Bond Future&#39;s best week since June 2016...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD11.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD11_0.jpg" style="width: 600px; height: 317px;" /></a></p> <p>&nbsp;</p> <p>The Dollar dropped on the week - the 7th weekly drop of the last 9...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD7.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD7_0.jpg" style="width: 600px; height: 314px;" /></a></p> <p>&nbsp;</p> <p>Yen was the biggest driver (stronger against the greenback) but we note Cable had been until it tumbled today...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD8.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD8_0.jpg" style="width: 600px; height: 317px;" /></a></p> <p>&nbsp;</p> <p>Copper was clubbed but bounced back, Precious metals were the week&#39;s big winners...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD2.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_EOD2_0.jpg" style="width: 600px; height: 391px;" /></a></p> <p>*&nbsp; *&nbsp; *</p> <p><a href="http://www.zerohedge.com/news/2017-02-24/whos-right-bonds-vix-hard-data-or-stocks">As we asked earlier</a>... <u><strong>Who&#39;s Right?</strong></u></p> <div class="content"> <p>The 30Y Yield just dropped back below 3.00% once again and 10Y is back at February lows - what happens next?</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bonds1.jpg"><img height="317" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bonds1_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>Despite the exuberance of hope, protection is heavily bid...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bonds2.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bonds2_0.jpg" style="width: 600px; height: 344px;" /></a></p> <p>&nbsp;</p> <p>And if Utility stocks&#39; demand is anything to go by, bond yields have a long way to fall...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_Utes.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_Utes_0.jpg" style="width: 600px; height: 286px;" /></a></p> <p>&nbsp;</p> <p>Finally - absent the hope-strewn soft-survey data, &#39;hard&#39; data has decidedly deteriorated...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bonds3.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/02/19/20170224_bonds3_0.jpg" style="width: 600px; height: 318px;" /></a></p> <p>&nbsp;</p> <p>So who&#39;s right? Stocks... or VIX and Bonds and Real macro data?</p> </div> <p>&nbsp;</p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="569" height="24" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20170224_EOD_0.jpg?1487970106" /> </div> </div> </div> http://www.zerohedge.com/news/2017-02-24/late-day-panic-buying-sends-dow-longest-record-streak-30-years#comments Across the Curve Bitcoin Bond Bond Business Copper Dow Dow 30 Economy Financial markets NASDAQ Precious Metals Short Stock market crashes Yen Fri, 24 Feb 2017 21:04:20 +0000 Tyler Durden 588925 at http://www.zerohedge.com