http://www.zerohedge.com/fullrss2.xml/article/article/%3Ca%20href%3D en Stocks, Yield Curve Slammed After China Hike, Draghi Taper, & Tax Tumult http://www.zerohedge.com/news/2017-12-14/stocks-yield-curve-slammed-after-china-hike-draghi-taper-tax-tumult <p>Did Senators Lee and Rubio (and Hatch) just go full &quot;Leeroy Jenkins&quot;?</p> <p><iframe allow="encrypted-media" allowfullscreen="" frameborder="0" gesture="media" height="315" src="https://www.youtube.com/embed/LkCNJRfSZBU" width="560"></iframe></p> <p>&nbsp;</p> <p><strong>A surprise China rate hike</strong> (and disappointing retail sales) sparked weakness in Chinese stocks...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD3.jpg"><img height="327" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD3_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p><strong>Mario Draghi</strong> managed to talk the Euro and Bund yields lower (despite attemptting to raise inflation forecasts)...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD2.jpg"><img height="316" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD2_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>Since the FOMC meeting, Bonds and Bullion are well bid as stocks and the dollar sink...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD5.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD5_0.jpg" style="width: 600px; height: 312px;" /></a></p> <p>&nbsp;</p> <p>US equity indices were all lower on the day, despite valiant attempt at a late day rally... Small Caps were worst followed by Trannies...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD17.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD17_0.jpg" style="width: 600px; height: 339px;" /></a></p> <p>&nbsp;</p> <p>VIX was up today as stocks ank (VIX closed above 10!)</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD16.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD16_0.jpg" style="width: 600px; height: 335px;" /></a></p> <p>&nbsp;</p> <p>But we note the correlation between stocks and VIX remains extreme...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD15.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD15_0.jpg" style="width: 600px; height: 300px;" /></a></p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>High Tax companies underperformed once again...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD7.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD7_0.jpg" style="width: 600px; height: 313px;" /></a></p> <p>&nbsp;</p> <p>Along the same lines, value factor has notably underperformed the last few days as tax hope fades...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD6.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD6_0.jpg" style="width: 600px; height: 313px;" /></a></p> <p>&nbsp;</p> <p>And financials have suddenly started to weaken in the last two days...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD11.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD11_0.jpg" style="width: 600px; height: 318px;" /></a></p> <p>&nbsp;</p> <p>Treasury yields were mixed today with the long-end dramatically outperforming</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD12.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD12_0.jpg" style="width: 600px; height: 317px;" /></a></p> <p>&nbsp;</p> <p>Sending 2s30s tumbling 5bps back below 90bps...<strong> This is the biggest percentage drop in the yield curve since Brexit and the lowest close print for 2s30s since Oct 2007</strong>...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD13.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD13_0.jpg" style="width: 600px; height: 313px;" /></a></p> <p>&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p>The Dollar briefly rebounded early on Draghi but faded after Lee and Rubio...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD9.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD9_0.jpg" style="width: 600px; height: 312px;" /></a></p> <p>&nbsp;</p> <p>AUD is the strongest major on the week after good jobs data...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD14.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD14_0.jpg" style="width: 600px; height: 309px;" /></a></p> <p>&nbsp;</p> <p>Copper continued to rebound (and WTI popped today after overnight weakness), PMs remain green on the week...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD10.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD10_0.jpg" style="width: 600px; height: 316px;" /></a></p> <p>&nbsp;</p> <p>In the cryptospace - <strong>Litecoin was sold, Ripple was heavily bid, </strong>Bitcoin Cash and Bitcoin Gold were up notably with Bitcoin and Ethereum marginally higher. The Bitcoin futures-cash spread compressed some more as an increasing number of brokers allowed shorts...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD4.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD4_0.jpg" style="width: 600px; height: 313px;" /></a></p> <p>&nbsp;</p> <p>Gold and Bitcoin refound their correlation today...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD8.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD8_0.jpg" style="width: 600px; height: 308px;" /></a></p> <p>&nbsp;</p> <p><strong>Finally, we note the S&amp;P 500 is at the intersection of a numerologist&#39;s nightmare...&nbsp;</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD1.jpg"><img height="316" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_EOD1_0.jpg" width="600" /></a></p> <p>The next multiple of 666 is right there!</p> <p><em>h/t Brad Wishak</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="600" height="46" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171214_EOD.jpg?1513284825" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/stocks-yield-curve-slammed-after-china-hike-draghi-taper-tax-tumult#comments 2s30s Alternative currencies Bitcoin Bitcoin Business China Copper Cryptocurrencies Currency Finance Mathematical finance Money S&P 500 Technical analysis VIX Yield Curve Thu, 14 Dec 2017 21:01:45 +0000 Tyler Durden 609181 at http://www.zerohedge.com Why Is Hillary Clinton Still Wearing Surgical Boot Two Months After Breaking Her Toe? http://www.zerohedge.com/news/2017-12-14/why-hillary-clinton-still-wearing-surgical-boot-two-months-after-breaking-her-toe <p><em style="box-sizing: border-box; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: inherit; font-family: lucida_granderegular, Verdana, sans-serif;"><span style="box-sizing: border-box; border-color: currentcolor; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; line-height: inherit;">Content originally published at&nbsp;</span><span style="box-sizing: border-box; border-color: currentcolor; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; color: #1e439a; text-decoration-line: underline;"><a href="http://ibankcoin.com/" target="_blank" style="box-sizing: border-box; border-color: currentcolor; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; line-height: 1.2; word-wrap: break-word; color: #1e439a;">iBankCoin.com</a></span></em></p> <p>What's going on with Hillary Clinton's toe?&nbsp;</p> <p>The former Secretary of State was spotted wearing a black surgical boot during a Vancouver stop along her book tour, <strong>two months</strong>&nbsp;after she says she took a tumble down some stairs in high heels while holding a cup of coffee.</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user237925/imageroot/2017/12/10/474D5F4600000578-5178037-image-a-39_1513231272444.jpg" width="315" height="400" /></p> <p>Clinton ambled onto the stage in some sort of black outfit to promote her book <em>What Happened</em>&nbsp;- which&nbsp;details why her election loss is everyone's fault but hers, when onlookers were confronted with the orthopedic device she's worn since October.&nbsp;</p> <p>While recounting her harrowing incident, Clinton said 'I was running down the stairs in heels with a cup of coffee in hand, I was talking over my shoulder and my heel caught and I fell backwards.&nbsp;'<strong>I tried to get up and it really hurt. I've broken my toe</strong>."</p> <p>Toe fractures generally take four to six weeks to heal:&nbsp;</p> <p>"If your toe is <strong>crooked</strong>&nbsp;after the injury, the bone may be out of place... ...It can take <strong>4 to 6 weeks for complete healing</strong>," according to medlineplus.gov.&nbsp;</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user237925/imageroot/2017/12/10/4to6_1.PNG" width="500" height="214" /></p> <p>Yet, two months later to the day Clinton definitely fell and broke her toe, her foot still seems to be bothering her. It's possible that if the toe required surgery to reset, it could have extended the healing process.&nbsp;</p> <p>Clinton's toe is the latest in a long line of health issues. While her physician Lisa Bardack said Clinton was "fit as a fiddle" during the 2016 election, however her <a href="https://www.youtube.com/watch?v=HbEqL1QsDY8" target="_blank">spastic head bobbing</a>, <a href="http://www.zerohedge.com/sites/default/files/images/user237925/imageroot/2017/12/10/hillary-clinton-sc-reuters-640x480.jpg" target="_blank">required assistance up stairs</a>, mysterious <a href="http://www.zerohedge.com/sites/default/files/images/user237925/imageroot/2017/12/10/20160812-065834-61lfe.jpg" target="_blank">(epi)'pen' shadow doctor</a>, <a href="http://www.zerohedge.com/sites/default/files/images/user237925/imageroot/2017/12/10/hillary-glasses2.jpg" target="_blank">special glasses</a>, and fainting spell on September 11th, 2016 before being hoisted into a van in a similar fashion to a side of beef, suggest otherwise.</p> <p>And what was that weird metal thing that fell down Hillary's pant leg while she was passing out?&nbsp;</p> <p><iframe src="https://www.youtube.com/embed/YzZl9j580tM" width="560" height="315" frameborder="0"></iframe></p> <p>Whatever's going on with Hillary's toe, requiring a boot to Position her foot as she travels around the Globe to keep her recovery Tracking along is absolutely sad!&nbsp;</p> <p style="text-align: center;"><span style="box-sizing: border-box; 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font-family: lucida_granderegular, Verdana, sans-serif; text-align: center; color: #333333;">Subscribe to our&nbsp;</span><a href="https://www.youtube.com/subscription_center?add_user=ibankcoin" target="_blank" style="box-sizing: border-box; border-color: currentcolor; font-variant-numeric: inherit; font-stretch: inherit; font-size: 13px; line-height: 1.2; font-family: lucida_granderegular, Verdana, sans-serif; word-wrap: break-word; color: #1e439a; text-align: center;"><span style="box-sizing: border-box; border-color: currentcolor; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; text-decoration-line: underline;"><span style="box-sizing: border-box; border-color: currentcolor; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit; color: #0066cc;"><span style="box-sizing: border-box; border-color: currentcolor; font-style: inherit; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;">You<strong style="box-sizing: border-box; border-color: currentcolor; font-style: inherit; font-variant: inherit; font-stretch: inherit; font-size: inherit; line-height: inherit; font-family: inherit;">Tube channel</strong></span></span></span></a></p> http://www.zerohedge.com/news/2017-12-14/why-hillary-clinton-still-wearing-surgical-boot-two-months-after-breaking-her-toe#comments Boot Culture Foot Footwear High-heeled footwear Hillary Clinton Medical classification Medical Subject Headings Podiatry Politics recovery Rodham family Shoes Toe Twitter Twitter Thu, 14 Dec 2017 20:55:21 +0000 ZeroPointNow 609180 at http://www.zerohedge.com Omarosa Says She Has A "Profound Story" To Tell About The Trump Administration http://www.zerohedge.com/news/2017-12-14/omarosa-says-she-has-profound-story-tell-about-trump-administration <p>After reportedly setting off alarms in the White House after trying to enter the residence after she&rsquo;d been sacked by Chief of Staff John Kelly, Omarosa Manigault Newman is threatening to go nuclear. In an interview with Good Morning America&#39;s Michael Strahan, Manigault Newman said there were a lot of things she was<strong> &ldquo;very unhappy with&rdquo;</strong> during her almost 12 months in the White House.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;I have to be very careful about how I answer this but there were a lot of things that I observed during the last year that I was very unhappy with, that I was very uncomfortable with, things that I observed, that I heard, that I listened to,&quot;</strong> she said.</p> </blockquote> <p>After spending the entire interview denying reports about her rumored feud with Kelly and the involvement of the Secret Service in her removal from the White Wing, Manigault Newman abruptly switched gears, turning suddenly critical of her former colleagues.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;As the only African American woman in this White House&hellip;I&rsquo;ve seen things that have affected me deeply and emotionally, that has affected my community and my people. <u>And when I can tell my story it is a profound story that I know the people will want to hear.&quot;</u></strong></p> </blockquote> <p>Technically, Manigault Newman said her tenure at the White House doesn&rsquo;t end until Jan. 20 &ndash; the first anniversary of Trump&rsquo;s inauguration. Which means she survived the first year, at least on paper.</p> <p><iframe allow="encrypted-media" allowfullscreen="" frameborder="0" gesture="media" height="315" src="https://www.youtube.com/embed/6xe64i_4GhM" width="560"></iframe></p> <p>When asked about her reportedly threatening response to being fired, Manigault Newman denied the reports, saying they were the work of one journalist with a grudge.</p> <p>She added that, if so many people witnessed her alleged confrontation with John Kelly, then where are the photos and video?</p> <p>Like many Trump administration alumni, Manigault Newman insisted she resigned, while anonymous media reports claimed she had been fired, and the White House declined to specify. Manigault Newman explained that she resigned after raising certain unelaborated &quot;concerns&quot; with Kelly.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;I&rsquo;m the only African American woman who sits at the table with the 30 assistants to the president and we all had to adjust to his militaristic style.&quot;</strong></p> </blockquote> <p>According to rumors reported in the mainstream press, Manigault Newman&rsquo;s closeness with the president initially led to her having &ldquo;walk in&rdquo; privileges to the Oval Office. As part of his attempt to instill order on the chaotic West Wing, Kelly has been trying to circumscribe these privileges. His efforts reportedly brought him into conflict with Manigault Newman.</p> <p>* * *</p> <p>With Omarosa gone, we can add one more name to the list of high-profile Trump administration departures.</p> <p>Sally Yates<br />Michael Flynn<br />Katie Walsh<br />Preet Bharara<br />James Comey<br />Michael Dubke<br />Walter Shaub<br />Mark Corralo<br />Sean Spicer<br />Micheal Short<br />Reince Priebus<br />Anthony Scaramucci<br />Steve Bannon<br />Sebastian Gorka<br />Tom Price<br />Omarosa Manigault Newman</p> <p>* * *</p> <p>Meanwhile, at least one person at the White House will miss the former reality TV show villain - even though many have said they didn&#39;t know what she did in her role, which was officially styled as communications director for the Office of Public Liason.</p> <p><strong>President Donald Trump marked Manigault Newman&#39;s departure with a goodbye tweet</strong>:</p> <p>&nbsp;</p> <blockquote class="twitter-tweet" data-partner="tweetdeck"><p dir="ltr" lang="en">Thank you Omarosa for your service! I wish you continued success.</p> <p>&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/941094961482780672?ref_src=twsrc%5Etfw">December 13, 2017</a></p></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p>&nbsp;</p> <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="625" height="268" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017.12.14omaros.JPG?1513283255" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/omarosa-says-she-has-profound-story-tell-about-trump-administration#comments Business Donald Trump Donald Trump Manigault Office of Public Liaison office of Public Liason Omarosa Manigault Politics Reality Secret Service Trump Administration United States White House White House White House staff Thu, 14 Dec 2017 20:45:00 +0000 Tyler Durden 609178 at http://www.zerohedge.com Kolanovic Unveils His 2018 Outlook: The "Frogs Are Almost Boiled" So Start Hedging http://www.zerohedge.com/news/2017-12-14/kolanovic-unveils-his-2018-outlook-frogs-are-almost-boiled-so-start-hedging-tail-ris <p>Barely two months after JPMorgan's Marko Kolanovic <a href="http://www.zerohedge.com/news/2017-10-03/kolanovic-what-next-crisis-will-look">previewed the next financial crisis</a>, which he dubbed the <strong>"Great Liquidity Crisis", </strong>and which would be catalyzed by the following liquidity disrupting elements:</p> <ul> <li>Decreased AUM of strategies that buy value assets</li> <li>Tail risk of private assets</li> <li>Increased AUM of strategies that sell on “autopilot”</li> <li>Liquidity-provision trends</li> <li>Miscalculation of portfolio risk</li> <li>Valuation excesses</li> </ul> <p>... the quant wizard is back in a more conventional form, this time summarizing JPM's 2018 outlook for equities, volatility and tail risk. </p> <p>Starting at the top, it may seem otherwise paradoxical - although in the new normal nothing surprises any more - that JPM which holds a near <a href="http://www.zerohedge.com/news/2017-10-03/kolanovic-what-next-crisis-will-look">apocalyptic long-term forecast for the world in a derivative context, </a>is also the bank with the highest 2018 S&amp;P target among its bank peers. Here's Kolanovic:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>Our price target for S&amp;P 500 at the end of 2018 is 3,000 and our earnings forecast (including tax reform) is $153. </strong>Half of the earnings upside (~$10) is due to tax reform, and the other half due to top line growth (~$7), margin expansion (~$1.50) and buybacks (~$2.50). To reach the price target, <strong>bond yields should not rise too much as that would destabilize the equity multiple.</strong> Yesterday’s Fed announcement did not indicate an increased pace of tightening. Opinions differ on the number of hikes in 2018, level of long term rates and impact of G4 central bank normalization. <strong>We think that risks for equities will start rising significantly mid-next year as the monetary accommodation is reduced and the level of interest rates increases. </strong>This will also be the main driver of an uptick in market volatility in our view.</p> </blockquote> <p>In other words, the second half is when one can expect fireworks. Meanwhile, and speaking of tax reform, the immediate future will - after numerous false starts - be marked by a "great rotation" into the Trump Tax Trade... </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>The upcoming reduction of US corporate tax rates may be one of the biggest positive catalysts for US equities this cycle. It will likely result in a rotation from </strong><strong>bonds to equities, from international to US equities, and from Growth to Value </strong><strong>stocks.</strong> We have extensively analyzed the impact of this reform, and the degree to which its impact is reflected in prices. <strong>We think that little is priced into the market and hence there is potential for market upside and significant style and sector rotation to be realized</strong>. Discussions with most of our clients support this thesis – <strong>clients are not repositioning portfolios until they see the reform passed. </strong>Sell-side analysts are also not revising earnings estimates until there is certainty on all of its details. As the reform passes, we expect hedge funds will reposition first, then real money fundamental investors, and finally quant models that will pick up revised earnings estimates, quality metrics or change in price momentum over several subsequent months. We are very early in this rotation.</p> </blockquote> <p>... unless of course the deal once again fall aparts in the final stretch. </p> <p>* * * </p> <p>What about Kolanovic's bread and butter: volatility? </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Market volatility collapsed in 2017, and our view is that it will gradually increase next year. <strong>The average VIX level of ~11 in 2017 may increase to an average level of ~13-14 in 2018. Volatility will likely be contained in the first half of the year, and then increase in the second half. </strong>In 2017, the VIX was ~10 points below its historical average. Out of those 10 points, our analysis shows that ~1/3 can be attributed to a temporary decline of stock correlations, ~1/3 to supply of volatility and temporary effects of daily gamma hedging, and ~1/3 to positive macro fundamentals and stability. <strong>Record low correlations between stocks are very likely to increase after the tax reform is fully priced in by the second half of 2018. This will likely push index volatility up by ~3 points. Perhaps the best example of the impact of correlation on reducing S&amp;P 500 volatility was the market move on Nov 29th, when financials and technology stocks moved ~4% relative to each other (a ~5 sigma move), leaving the S&amp;P 500 index price unchanged</strong>. The impact of volatility sellers and gamma hedging should also moderate as realized volatility increases and investors start to hedge gains later in the year. Higher interest rates are expected to put pressure on leverage and various volatility-reducing arbitrage strategies.</p> </blockquote> <p>We find it somewhat surprising that unlike BofA's Michael Hartnett, Kolanovic does not see a violent, "Black Monday"-type flash crash in the beginning of 2018. In fact, his view is flipped with the bulk of volatility saved for the latter part of the year when the impact of receding central bank liquidity will finally be felt. How will that translate to equities? </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>Tail risk for equities and other risky asset classes will increase in 2018. </strong>Our analyses point to <strong>significant impact of monetary stimulus removal on levels of risk premia across asset classes, levels of leverage, and valuations. </strong></p> </blockquote> <p>And here is some practical advice from the quant: "<strong>asset classes may not react immediately, and like a ‘frog being boiled’ tail risks may be realized with a significant delay and triggered by an unrelated catalyst." </strong>However, once the tail risk does manifest itself, it could be a violent event: "<strong>with forced deleveraging of systematic strategies (options hedging/dynamical delta hedging, volatility targeting, risk parity, trend following), disruptions to market liquidity, and failure of bonds to offset equity risk. We believe that starting in Q2 of 2018, equity investors should start hedging tail risk."</strong></p> <p>Finally, we catch a glimpse of the "old Marko" in the following concluding hedge regarding JPM's - and anyone else's - year end price target:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>Can equities, volatility and tail risk all go higher, and how much conviction should one have in any ‘year-end’ price target</strong>? Annual price targets may be remnants of times when markets were less efficient, market reaction times slower and investors less sophisticated. In the age where quantitative/derivative investors and technology (e.g. big data and AI) compress the time horizon of market reactions, <strong>it is likely impossible to predict price levels 1 year out. Price target also cannot be cast in isolation to other asset classes</strong>.&nbsp;</p> </blockquote> <p>Marko's conclusion: take everything he - and his colleagues - just told you about JPM's price target, and throw it out: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>... the level of an equity index is dependent on the level of interest rates (which in turn may be impacted by actions of a central bank in a foreign country), levels of market volatility (that determine leverage), impact of FX, etc. <strong>Can all of those be forecasted on a year-long horizon? Likely not. </strong>We do think short term predictions are possible where one can isolate specific catalysts, positioning and flows against an otherwise stable macro backdrop. <strong>Given that most of the notional volumes nowadays are also traded via derivatives, more useful forecasts would be those of a price distribution and correlations (rather than one price level at a particular point in time).</strong></p> </blockquote> <p>Which, of course, is the most political way possible for the Croat to say that while it is impossible to predict where stocks end 2018, something the author of the following piece probably should have known before spending a few weeks working on the 55 page pdf... </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/equity%20markets%20jpm%201.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/equity%20markets%20jpm%201_0.jpg" width="500" height="455" /></a></p> <p>...&nbsp; the one place where they will not be, is JPM's price target. As for everything else, we can only hope that volatility finally does rise high enough to make the opinions of volatility experts great - or even just relevant - again.</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="1910" height="1000" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/kolanovic%20teaser%202.jpg?1513282855" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/kolanovic-unveils-his-2018-outlook-frogs-are-almost-boiled-so-start-hedging-tail-ris#comments artificial intelligence Bond Business Economy ETC Finance Financial markets Financial risk flash Hedge Hedge fund Mathematical finance Money New Normal pdf Risk parity S&P 500 Technical analysis US Federal Reserve VIX Volatility Volatility Thu, 14 Dec 2017 20:24:18 +0000 Tyler Durden 609177 at http://www.zerohedge.com Bonds Versus Economists: Reality & The Echo Chamber http://www.zerohedge.com/news/2017-12-14/bonds-versus-economists-reality-echo-chamber <p><a href="http://www.alhambrapartners.com/2017/12/11/bonds-vs-economists-the-means-to-the-end/"><em>Authored by Jeffrey Snider via Alhambra Investment Partners,</em></a></p> <p><span style="color: #000000;"><strong>As part of its effort to stress its own self-importance, the Federal Reserve conducts a survey of the Primary Dealer members through its New York branch. </strong>A written questionnaire is sent out to each bank in advance of every monetary policy meeting. The purpose is for monetary policymakers to make sure that there aren&rsquo;t any big surprises, that the market, or, in this case, orthodox Economists working for one part of the market, is seeing things consistent with how the Fed wants them to.</span></p> <p><span style="color: #000000;">In September 2013, the Primary Dealer Survey <a href="https://www.newyorkfed.org/medialibrary/media/markets/survey/2013/September_result.pdf">questions</a> included a few pertaining to the then ongoing &ldquo;taper tantrum&rdquo; roiling markets around the world. It was &ldquo;reflation&rdquo; #2 and like the others, both the one before and the one after, it came on rather quickly and harshly. On the issue of benchmark interest rates, in the form of the UST 10s, the Primary Dealers all saw interest rates rising still further into the foreseeable future.</span></p> <p><em><strong><span style="color: #000000;">Of those surveyed, 65% believed that the 10-year yield would be above 3% by the end of 2014; more than three-quarters, 78%, thought the same for the end of 2015, including 15% who were expecting the 10s to get above 4.50% compared to just 6% who guessed, correctly, 2.01% to 2.50%.</span></strong></em></p> <p><img class="aligncenter size-full wp-image-48786" height="377" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Collateral-FRBNY-10s-Survey.png" width="600" /></p> <p><span style="color: #000000;">With the long end of the treasury curve trading sideways to slightly lower over the past nearly two months, that means yields here are lower today than one year ago. But, as you can plainly see above, the Primary Dealers never, ever expect rates to go lower. They are seriously biased toward rising nominal yields not just at the right of the curve but in all spaces.</span></p> <p><span style="color: #000000;">One of the problems with at least the Dealer survey is, again, it&rsquo;s not really the Dealers who are being surveyed; it is the Economists at those banks who are given the task of reporting to other Economists at the Fed for what the &ldquo;market&rdquo; thinks is going on. This is not the first time such massive disconnect or even dissonance has played out in this fashion.</span></p> <p><span style="color: #000000;"><em><u><strong>Practically the whole of the last ten plus years has been in one way or another Economists confirming each other with each other and then wondering why it never works out that way</strong></u></em>. In early 2007, at a time when there was at least a chance something might have been done before the worst of the panic, the FOMC spent a lot of time dismissing the market verdict <a href="http://www.alhambrapartners.com/2016/08/30/eurodollar-futures-libor-and-the-oft-obscured-consistency-of-present-vs-future-risks/">of eurodollar futures</a> which was very plain in suggesting grave, broad market concerns about what was unfolding &ndash; that subprime wasn&rsquo;t the real element to focus on.</span></p> <p><span style="color: #000000;">Eurodollar futures were in policy discussions dismissed outright for among other reasons the surveys. These had showed Economists at the Primary Dealers expecting other things than the traders at those very same firms who were actually putting those firms&rsquo; money into those alarming <a href="http://www.alhambrapartners.com/2016/08/30/eurodollar-futures-libor-and-the-oft-obscured-consistency-of-present-vs-future-risks/">eurodollar futures prices</a>.</span></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><span style="color: #000000;">What specifically elicited Lacker&rsquo;s question was Dudley&rsquo;s prior attempt at an answer, &ldquo;Well, another explanation is that the economists who make the dealer forecasts are not the traders who execute the Eurodollar futures positions.&rdquo; In other words, the FOMC was taking the side of the economists. This is disturbing on so many levels, to discount very good market information in favor of econometrics, and to so in blanket fashion.</span></p> </blockquote> <p><span style="color: #000000;"><strong>Thus, the Primary Dealer surveys amount to the same kind of echo chamber as <a href="http://www.alhambrapartners.com/2017/05/31/a-better-mirror/">the Beige Book</a>. </strong>That&rsquo;s a problem because it reinforces all the wrong ideas in the official sense about what&rsquo;s <em>really</em> going on &ndash; the view from Economists rather than the market (though the latter isn&rsquo;t really needed in that market prices do tell you what&rsquo;s really happening so long as an Economist you can actually stand to be blatantly and persistently contradicted).</span></p> <p><span style="color: #000000;"><u><strong>As it turns out, banks have been buying the feathers out of UST&rsquo;s at the very same time their Economists expect rates to rise if not skyrocket.</strong></u> Though interest rates have nowhere to go but up according to the Primary Dealers, the banks themselves have been lining up to buy those very bonds their own Economists tell them are the worst investment of our lifetime.</span></p> <p><img class="aligncenter size-full wp-image-48785" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Collateral-Domestic-USTs.png" style="width: 601px; height: 432px;" /></p> <p><span style="color: #000000;">We hear very often that regulation is to blame for this, particularly the LCR put into the Basel 3 schematic. You can see here (and what&rsquo;s below), however, that banks act not on government but true market conditions (that are often very different than what officials say). It was the fourth quarter of 2008 when the US domestic banking system began its UST binge, one that was to accelerate massively in Q3 2013 just as the survey results were talking only the opposite for rates and therefore prices.</span></p> <p><strong><span style="color: #000000;">What we find in bank holdings of treasuries is only part of the story, and in many ways a small part. Banks have always been cognizant of their liquidity profiles, it&rsquo;s just that in the years before the crisis (especially 1995 forward) they started to believe Alan Greenspan and his &ldquo;put&rdquo; way too much. UST&rsquo;s had come to be supplemented by agency paper in terms of what counted as the highly liquid.</span></strong></p> <p><img class="aligncenter size-full wp-image-48784" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Collateral-Domestic-Agency.png" style="width: 601px; height: 432px;" /></p> <p><span style="color: #000000;"><strong>It may seem counterintuitive, but US banks have been going nuts for agency debt assets since the worst right after Lehman. </strong>Despite the hardships supposedly forced on the system when Fannie and Freddie were pushed into conservatorship in September 2008, the week before Lehman, US banks have been keen to own any MBS stamped with a GSE guarantee. Why?</span></p> <p><span style="color: #000000;"><a href="http://www.alhambrapartners.com/2017/10/23/eurodollar-university-part-3/">Balance sheet mechanics</a>. There are funding considerations, too, including repo fallout especially in the full-scale repudiation of any and all private label MBS, but more than that banks needed highly liquid, repo-eligible paper that did not explode their balance sheets (what you see below being forced <em>to reverse</em>).</span></p> <p><img class="aligncenter size-full wp-image-47098" src="http://www.alhambrapartners.com/wp-content/uploads/2017/08/EuroU-Interbank-1-3.png" style="width: 600px; height: 316px;" /></p> <p><span style="color: #000000;">The combination of UST&rsquo;s plus agency securities, even those with the GSE&rsquo;s in restructuring, were highly attractive not on a return basis but the far more important survival one. It&rsquo;s the perfect example for how the eurodollar system turned itself upside down; before 2007 everyone really believed in riskless return and so <a href="http://www.alhambrapartners.com/2017/02/24/always-shrinking/">massive expansion</a> was prioritized over everything (reduce as much as possible the operating liquidity cushion in agency and UST holdings); after 2007, what is considered is returnless risk, where liquidity preferences continue to drive bank considerations no matter what the Fed does or Economists say about the economy and markets.</span></p> <p><strong><span style="color: #000000;">The domestic banks are only one part of the equation. In the modern banking system of the eurodollar, global banks matter as much if not more than their onshore counterparts.</span></strong></p> <p><img class="aligncenter size-full wp-image-48783" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Collateral-ROW-Both.png" style="width: 601px; height: 432px;" /></p> <p><span style="color: #000000;">They, too, hold some manner of liquidity cushion though one that had been more constant during the bubble years. That may be because for our purposes here, using the Z1 figures, the statistics do not break down into official and non-official capacities. <strong>An overseas central bank is more likely to hold its &ldquo;dollar&rdquo; &ldquo;reserves&rdquo; in the form of safe and liquid instruments like UST&rsquo;s and agency debt than offshore private banks operating in eurodollars.</strong></span></p> <p><img class="aligncenter size-full wp-image-48782" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Collateral-ROW-UST.png" style="width: 601px; height: 432px;" /></p> <p><span style="color: #000000;">In terms of UST&rsquo;s alone, foreign banks have been buying them as fast as they possibly can. Again, this is not regulation taming previous reckless behavior, it is the global monetary system coming to terms with its past bad assumptions by force of ongoing systemic illiquidity. In the early eighties, foreign institutions held two-thirds of their credit assets in the form of UST&rsquo;s; by Q2 2007, that proportion had fallen to one quarter on the basis of agency paper steadily gaining favor as eurodollar finance spilled out in one form as a US housing bubble.</span></p> <p><img class="aligncenter size-full wp-image-48781" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Collateral-ROW-Agency.png" style="width: 601px; height: 432px;" /></p> <p><img class="aligncenter size-full wp-image-48424" src="http://www.alhambrapartners.com/wp-content/uploads/2017/11/ABOOK-Nov-2017-TIC-Bank-Liab-Payable-To-by-instrument.png" style="width: 599px; height: 375px;" /></p> <p><span style="color: #000000;">Domestic banks may have been fine with what happened at Fannie and Freddie, but foreign firms and central banks were <em>not</em>. They sold out and a great deal of it was transferred right onto the Fed&rsquo;s balance sheet due to its various QE schemes dedicated to the MBS sector. Without agency debt for their liquidity assignments, that&rsquo;s why they increasingly turned to UST&rsquo;s. Between 2007 and 2013, they went from one quarter of all ROW credit assets held in them to <em>one half</em>.</span></p> <p><strong><span style="color: #000000;">In other words, there was a hell of a lot of pressure on the UST side to support the continued fluid operation (collateral flow) in funding markets like repo (as well as collateral in FX) as well as to provide a liquidity cushion as a matter of altered behavior (enhanced by regulation). And most of it was coming from the overseas portion of the &ldquo;dollar&rdquo; markets.</span></strong></p> <p><img class="aligncenter size-full wp-image-48780" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Collateral-ROW-UST-rising-dollar.png" style="width: 601px; height: 432px;" /></p> <p><span style="color: #000000;">Starting in the middle of 2014, this &ldquo;rising dollar&rdquo; period, the ROW sector began selling very heavily out of their UST holdings.<strong> Rather than lead to higher yields on them as Economists had steadily projected, the opposite occurred.</strong></span></p> <p><span style="color: #000000;">Part of the problem here related(s) to interpretation, meaning who was actually selling and why. Again, the Z1 statistics combine official and private activity together whereas something like TIC does not.</span></p> <p><img class="aligncenter size-full wp-image-47967" src="http://www.alhambrapartners.com/wp-content/uploads/2017/10/ABOOK-Oct-2017-TIC-Official-6.png" style="width: 600px; height: 338px;" /></p> <p><img class="aligncenter size-full wp-image-48787" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/DollarBull-RUB-Russia-TIC.jpg" style="width: 600px; height: 375px;" /></p> <p><span style="color: #000000;"><u><strong>This kind of collateral tightening is beyond the grasp of Economists, even those who work at Primary Dealers. </strong></u>Banks particularly offshore private firms may not be buying UST&rsquo;s because of purely economic considerations, but it doesn&rsquo;t really matter in terms of the price. In other words, you can try to make the argument that yields are held down by these technical matters and therefore on economic grounds alone rates &ldquo;would&rdquo; be higher than they are, therefore proving Economists right to some degree in their theory and projections (and so the matter becomes one of timing).</span></p> <p><img class="aligncenter size-full wp-image-48746" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Repo-Fails-1.png" style="width: 601px; height: 351px;" /></p> <p><em><strong><span style="color: #000000;">Except that UST buying as a matter of collateral (as well as balance sheet factors) is an unambiguous measure of tight money conditions (something we know especially in the &ldquo;rising dollar&rdquo; period for why foreign officials were &ldquo;selling&rdquo; their UST&rsquo;s so heavily), which is consistent with reduced future economic opportunity and therefore lower overall nominal yields. It is one mechanical property for how markets end up pricing the interest rate fallacy.</span></strong></em></p> <p><img class="aligncenter size-full wp-image-48744" src="http://www.alhambrapartners.com/wp-content/uploads/2017/12/ABOOK-Dec-2017-Repo-Fails-Bills-Again.png" style="width: 601px; height: 357px;" /></p> <p><em><strong><span style="color: #000000;">Constant perhaps overburdened UST buying for these reasons (including FX collateral) isn&rsquo;t some artificial injection to set aside as &ldquo;transitory&rdquo;, it is instead (one of) the means to the end; one that Primary Dealer Economists don&rsquo;t understand that their traders do in practice even if those traders don&rsquo;t completely appreciate from an individual basis what that might mean in the big picture monetary context.</span></strong></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="613" height="370" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171214_wrong.jpg?1513274968" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/bonds-versus-economists-reality-echo-chamber#comments Agency Paper Alan Greenspan Banking Beige Book Bond Business Central Banks Economy EuroDollar Eurodollar fed Federal Reserve Federal Reserve System Finance Financial markets Housing Bubble International finance Lehman Market Conditions Market liquidity Monetary Policy Money Reality Repurchase agreement Systemic risk US Federal Reserve Thu, 14 Dec 2017 20:06:47 +0000 Tyler Durden 609172 at http://www.zerohedge.com Court Filing Confirms Fusion GPS Hired DOJ Official's CIA Wife To Dig Up Dirt On Trump http://www.zerohedge.com/news/2017-12-14/court-filing-confirms-fusion-gps-hired-doj-officials-cia-wife-dig-dirt-trump <p>The head of opposition research firm Fusion GPS admitted in a court filing this week that his firm paid the wife of a senior Justice Department official to help dig up damaging information on then-candidate Donald Trump.&nbsp;</p> <p><em><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/ohrsfus.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/ohrsfus_0.png" width="500" height="232" /></a><br />Bruce Ohr, Glenn Simpson, Nellie Ohr</em></p> <p>Glenn Simpson, co-founder of Fusion GPS, filed the signed declaration in a D.C. court this week affirming that <strong>Nellie Ohr</strong>, wife of demoted DOJ official <strong>Bruce Ohr</strong>, was contracted by Fusion through the summer and fall of 2016 "<strong>to help our company with its research and analysis of Mr. Trump,</strong>" according to the filing. The House Intelligence Committee determined that in November 2016, Simpson&nbsp;<strong><a href="http://www.foxnews.com/politics/2017/12/07/top-doj-official-demoted-amid-probe-contacts-with-trump-dossier-firm.html" target="_blank">met with Bruce Ohr</a></strong>&nbsp;shortly after the election to discuss their findings regarding Russia and Trump. Bruce Ohr lost his senior-level position at the DOJ as associate deputy attorney general after his meetings with Simpson <strong>and British spy Christopher Steele, who assembled the Trump-Russia dossier, </strong>were discovered.&nbsp;</p> <p>And why would Fusion GPS hire Nellie Ohr? Aside from the obvious connection to her DOJ husband who was in a position to provide Fusion GPS with information on Trump gathered by US intelligence agencies,&nbsp;<strong style="box-sizing: border-box; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; line-height: inherit; font-family: lucida_granderegular, Verdana, sans-serif;">Nellie Ohr also represented the CIA's "Open Source Works" group&nbsp;</strong>in a 2010 "<a href="https://www.ncjrs.gov/pdffiles1/nij/230846.pdf" target="_blank" style="box-sizing: border-box; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; line-height: 1.2; font-family: lucida_granderegular, Verdana, sans-serif; word-wrap: break-word; color: #1e439a;">expert working group</a>&nbsp;report on international organized crime"&nbsp;<strong style="box-sizing: border-box; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; line-height: inherit; font-family: lucida_granderegular, Verdana, sans-serif;">along with&nbsp;Bruce Ohr and Glenn Simpson</strong>.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Nellie Ohr, the wife of demoted DOJ official, Bruce Ohr, not only worked for Fusion GPS, but has also represented the CIA&#39;s &quot;Open Source Works&quot; group. <a href="https://t.co/u5HPgJwvWd">https://t.co/u5HPgJwvWd</a> <a href="https://t.co/ZPhAIzR6wv">pic.twitter.com/ZPhAIzR6wv</a></p> <p>&mdash; Josh Caplan (@joshdcaplan) <a href="https://twitter.com/joshdcaplan/status/940444559468892160?ref_src=twsrc%5Etfw">December 12, 2017</a></p></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p>In addition to the dossier which served as the basis for the DOJ and FBI to obtain FISA surveillance last year on a Trump campaign advisor, Fusion GPS was also behind the infamous <a href="http://www.foxnews.com/politics/2017/11/07/fusion-gps-official-met-with-russian-operative-before-and-after-trump-jr-sit-down.html" target="_blank">Trump Tower</a> "set up" with a Russian lawyer, and a failed attempt to link Donald Trump to <a href="http://www.zerohedge.com/news/2017-12-12/fusion-gps-tried-and-failed-link-trump-jeffrey-epstein" target="_blank">billionaire pedophile Jeffrey Epstein</a>.&nbsp;</p> <p>Also of note, the <em>Daily Caller&nbsp;</em>reported last month that&nbsp;<a href="http://dailycaller.com/2017/11/21/unsealed-fusion-gps-bank-records-show-russia-related-payments/" target="_blank" style="font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; box-sizing: border-box; font-stretch: inherit; line-height: 1.2; word-wrap: break-word; color: #1e439a;" rel="noopener noreferrer">heavily redacted Fusion GPS bank records</a>&nbsp;reveal DNC law firm&nbsp;<a href="http://ibankcoin.com/zeropointnow/files/2017/11/rec1.png" target="_blank" style="font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; box-sizing: border-box; font-stretch: inherit; line-height: 1.2; word-wrap: break-word; color: #1e439a;">Perkins Coie</a>&nbsp;paid Fusion a total of&nbsp;<strong style="font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; box-sizing: border-box; font-stretch: inherit; line-height: inherit;">$1,024,408</strong>&nbsp;in 2016 for opposition research on then-candidate Donald Trump - including the 34-page dossier. And who did Perkins Coie operate on behalf of?<strong>&nbsp;<a href="http://www.zerohedge.com/news/2017-11-02/heres-how-much-hillary-clinton-and-dnc-paid-trump-dossier" target="_blank">Hillary Clinton and the DNC</a>.&nbsp;</strong></p> <p>So, as part of a million-dollar effort by Fusion GPS to dig up dirt on then-candidate Donald Trump, <strong>Hillary Clinton and the DNC paid Fusion GPS, which employed the wife of a senior DOJ official in this endeavor, who represented the CIA's "Open Source Works" department during an "expert working group."&nbsp;</strong></p> <p>A group of House Republicans has been calling for the appointment of a second special counsel to investigate Obama and Clinton-linked controversies, which Attorney General Jeff Sessions said he is considering hours after a&nbsp;<a href="http://www.foxnews.com/politics/2017/12/12/trump-lawyer-wants-separate-special-prosecutor-to-probe-doj-fusion-conflicts.html" target="_blank" style="box-sizing: border-box; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-stretch: inherit; line-height: 1.2; font-family: lucida_granderegular, Verdana, sans-serif; word-wrap: break-word; color: #1e439a;">Tuesday call</a>&nbsp;by President Trump's outside counsel Jay Sekulow for a second special counsel&nbsp;to investigate Bruce and Nellie Ohr's association with Fusion GPS during the summer and fall of 2016.&nbsp;</p> <p><em><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/Jay-Sekulow-on-Hannity--1280x720.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/Jay-Sekulow-on-Hannity--1280x720.jpg" width="500" height="281" /></a><br />Jay Sekulow</em></p> <p>In a statement issued hours after Sekulow's appearance on Fox News, Sessions said: "I've put a Senior Attorney, with the resources he may need, to review cases in our office and make a recommendation to me, if things aren't being pursued that need to be pursued, if cases may need more resources to complete in a proper manner, and to recommend to me if the standards for a special counsel are met, and the recommended one should be established"</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="700" height="325" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/ohrsfus.png?1513273789" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/court-filing-confirms-fusion-gps-hired-doj-officials-cia-wife-dig-dirt-trump#comments Central Intelligence Agency Christopher Steele Competitive intelligence DC court Department of Justice DOJ Donald Trump Donald Trump Donald Trump–Russia dossier FBI Federal Bureau of Investigation Fox News Fusion GPS Glenn R. Simpson House Intelligence Committee International relations Nellie Ohr's association Russian interference in the 2016 United States elections Russia–United Kingdom relations Russia–United States relations SPY Twitter Twitter U.S. intelligence United Kingdom–United States relations United States Thu, 14 Dec 2017 19:45:00 +0000 Tyler Durden 609168 at http://www.zerohedge.com Stocks Slammed As Rubio, Lee Spark Tax-Reform-Deal Anxiety http://www.zerohedge.com/news/2017-12-14/stocks-sink-tax-reform-deal-anxiety-rises <p>With McCain in hospital and now Lee and Rubio questioning the child-care credit, markets are showing <strong>some anxiety about just how &quot;done deal&quot; this deal really is...</strong></p> <ul> <li><strong>GOP SENATOR LEE UNDECIDED WHETHER TO SUPPORT TAX BILL; SEEKS CHANGES TO CHILD TAX CREDIT - AIDE: RTRS</strong></li> <li><strong>RUBIO SAID TO VOTE `NO&#39; UNLESS CHILD TAX CREDIT CHANGED: POST</strong></li> </ul> <p>The reaction is clear...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_down.jpg"><img height="314" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_down_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>And the High Tax companies are continuing to see profit-taking...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_vote2.jpg"><img height="313" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_vote2_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>Financials are also struggling...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_down1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_down1_0.jpg" style="width: 600px; height: 312px;" /></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="1732" height="907" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171214_down.jpg?1513280079" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/stocks-sink-tax-reform-deal-anxiety-rises#comments Child tax credit Economy Florida Republicans International Democrat Union John McCain Marco Rubio Politics Politics of the United States Republican Party Republican Party Social Issues Tax Taxation in the United Kingdom Taxation in the United States Thu, 14 Dec 2017 19:34:46 +0000 Tyler Durden 609171 at http://www.zerohedge.com Goldman Sets 100% Margin Requirement On "Some" Bitcoin Futures trades http://www.zerohedge.com/news/2017-12-14/goldman-demanding-100-margin-bitcoin-futures <p>Goldman Sachs has become the latest brokerage to raise its margin requirements for clients who wish to trade the new bitcoin futures launched by the CBOE late Sunday, following in the footsteps of<a href="http://www.zerohedge.com/news/2017-12-11/interactive-brokers-allows-long-only-bitcoin-futures-trading-50-margin"> Interactive Brokers, </a>which initially prohibited clients from taking a short position in the futures contracts and later demanded more than a double margin in case a short leads to a greater than 100% loss.</p> <p>Not surprisingly, the Vampire Squid is taking a similarly cautious approach, announcing that it will ask some of its clients to put up 100% margin on their bitcoin futures positions if they wish to clear them with the bank, suggesting the bank would be covered in case of a full loss on the underlying.&nbsp;</p> <p>Of course, by &quot;<strong>some&quot;, </strong>the bank probably means clients who are seeking to short the digital currency - a sign that the bank is afraid it could be left on the hook for customers&#39; losses if there&#39;s a vicious &quot;Bitcoin Volkswagen&quot; which wipes out short positions. <strong>By demanding full margin, Goldman&#39;s clients may as well be trading the underlying as there is zero leverage on the associated futures position; effectively, the only benefit from doing such a trade is giving Goldman the &quot;privilege&quot; of holding the bitcoin and keeping it safe from hackers&#39; prying hands.</strong></p> <p>The demands deterred some clients from seeking to clear trades through the bank and led them to take their business elsewhere, Bloomberg said. Notably, the guidelines are higher than Options Clearing Corp.&rsquo;s 44%, required to clear contracts traded on the Cboe Global Markets Inc., and the 47% to be demanded by CME Group Inc. when it begins trading bitcoin futures next week.</p> <p>&ldquo;Margin decisions are based on multiple factors and vary on a case-by-case basis,&rdquo; Tiffany Galvin, a spokeswoman for New York-based Goldman Sachs, said in a statement.</p> <p>The bank is one of a small list of bank that have agreed to clear the trades since the Cboe began offering futures contracts earlier this week. Bitcoin&rsquo;s volatility spurred many large banks to hold off although with every passing day they are losing market share to Goldman, which will prompt all of them to rush back in once a few weeks go by without major accidents.</p> <p>It&rsquo;s not uncommon for a brokerage to impose steeper requirements than the exchange. Goldman&rsquo;s guideline means that clients won&rsquo;t enjoy any leverage on long positions. A margin requirement is how much investors must set aside so that other parties in the trade know any losses can be covered. The guidelines for bitcoin futures are several times that of commodities such as gold and oil.</p> <p>The price of bitcoin futures dipped modestly on the news, as Goldman now effectively allows shorting bitcoin, even if without leverage.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/12/13/2017.12.14xbtc.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/12/13/2017.12.14xbtc_0.JPG" style="width: 500px; height: 243px;" /></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="738" height="443" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/bitcoin%20teaser%203_3.jpg?1513279499" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/goldman-demanding-100-margin-bitcoin-futures#comments Alternative currencies Bitcoin Bitcoin Business CBOE CME Group Cryptocurrencies Economics of bitcoin Finance Financial markets Futures contract Futures exchange Futures exchanges Futures markets goldman sachs Goldman Sachs Goldman Sachs Investment Margin Market economics) Market Share Money Short Volatility Volkswagen Thu, 14 Dec 2017 19:27:55 +0000 Tyler Durden 609176 at http://www.zerohedge.com Concerned About Bitcoin Security? Try This... http://www.zerohedge.com/news/2017-12-14/concerned-about-bitcoin-security-try <p><a href="https://www.sovereignman.com/investing/concerned-about-bitcoin-security-try-this-22767/"><em>Authored by Simon Black via SovereignMan.com,</em></a></p> <p><strong>It happened again. Last week, hackers stole 4,700 Bitcoins (over $80 million at today&rsquo;s price) from mining marketplace NiceHash.</strong></p> <p><em>(The company pairs up people with spare computing power with others who are willing to pay to use that capacity to mine Bitcoin&ndash; and then announced they would reimburse users who lost money from the hack.)</em></p> <p>On top of that, last month hackers stole $31 million of another cryptocurrency called Tether.</p> <p>But those are only two recent attacks.</p> <p>Remember Mt. Gox?</p> <p>The Bitcoin exchange was founded 2010. By 2013, it was handling<em> around 80% of all Bitcoin transactions.</em></p> <p>Then the company halted all trading after &ldquo;technical issues&rdquo; caused 850,000 Bitcoins to go missing.</p> <p><strong>Those missing coins are worth over $15 billion at today&rsquo;s price.</strong></p> <p><em><span style="text-decoration: underline;"><strong>All of the crypto theft making people question the security of Bitcoin and other digital currencies.</strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_btc.png"><img height="313" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/12/13/20171214_btc.png" width="600" /></a></strong></span></em></p> <p><span style="text-decoration: underline;"><strong>But it&rsquo;s important to remember, in these cases, &ldquo;Bitcoin&rdquo; didn&rsquo;t get hacked&hellip; it was the exchanges or marketplaces that got hacked.</strong></span></p> <p>This happens almost every day; people unwittingly get their phones and emails hacked and end up losing their cryptocurrency in the process.</p> <p>It reminds me of the early days of the Internet, back when WiFi was still a new thing and banks were just starting to provide online account access.</p> <p>Back then, hacks were commonplace. Users didn&rsquo;t know enough about wireless network security, and banks didn&rsquo;t have SSL enabled&hellip; so hackers could easily &lsquo;sniff&rsquo; data packets and steal bank login details.</p> <p>Fast forward 10-15 years and all of that&rsquo;s changed.</p> <p>Most people at this point (hopefully) know how to secure their WiFi networks with WPA2 security or better, and banks employ much better security and encryption standards.</p> <p><strong>But with cryptocurrencies it&rsquo;s still very Wild West out there, vastly increasing the chances of hacks, cracks, and theft.</strong></p> <p>You&rsquo;d be amazed, for example, how many people use a ridiculously unsecure password like &ldquo;<em>123456</em>&rdquo; for a website login that stores their Bitcoin secret key.</p> <p><strong>And even if hackers don&rsquo;t steal your crypto, there&rsquo;s still a chance you&rsquo;ll lose it.</strong></p> <p>A friend of mine bought some Bitcoin in 2010 and stored it on a laptop. Then he threw the laptop away&hellip; along with all the Bitcoin. And there&rsquo;s no way to get it back.</p> <p>Like just about anything, all it takes is a little bit of education to prevent a major disaster from occurring.</p> <p><strong>One approach I encourage you to learn about for storing crypto is called &ldquo;cold storage.&rdquo;</strong></p> <p>Before I define cold storage, a bit of background if you&rsquo;re unfamiliar with how the public key/private key system works.</p> <p>A public key is a code available to anyone who trades cryptocurrency with you. A private key is a secret, alphanumeric number never to share with anyone.</p> <p><u><strong>Imagine a cryptocurrency public key is your home address. </strong></u>That address is in just about every public database imaginable, from the county clerk&rsquo;s property registry to the local phone book.</p> <p>And if you want someone to send you mail, you give them your address. Easy.</p> <p><strong>But the simple fact that someone has your home address doesn&rsquo;t give them access to the inside of your house, and the contents within it.</strong></p> <p><u><strong>No, for that, they&rsquo;ll need your house key. And that&rsquo;s essentially what your crypto private key is: something that allows only you to access the property.</strong></u></p> <p><u><em><strong>So: public key = home mailing address, private key = house key.</strong></em></u></p> <p>Clearly it makes sense to safeguard your house key. You wouldn&rsquo;t make copies and distribute them in public to everyone who walks by.</p> <p>Similarly it makes sense to safeguard your private key (sometimes called secret key).</p> <p>When you store your cryptocurrency with an exchange, or even in a web or mobile wallet, it means that some other service or application has control of your private key.</p> <p>If they get hacked, you&rsquo;ll lose everything. If they go rogue, you&rsquo;ll lose everything.</p> <p>I&rsquo;m always amazed that so many people store crypto in this way.</p> <p>Part of the benefit of holding crypto is that you can essentially be your own banker, i.e. there is no middle man between you and your savings.</p> <p><strong>Bottom line, you don&rsquo;t need some website storing your key online for you. With a bit of education, it&rsquo;s possible to create your own wallet and store the private key -offline-.</strong></p> <p>This is what&rsquo;s known as cold storage.</p> <p>Bear in mind that a private key is nothing more than a string of digits, something like</p> <p><em>5Kb8kLf9zgWQnogidRq76MzPL6TsZZY36hWXMssSzNydYXYB9KF</em></p> <p>If you really wanted you could simply write this down on a piece of paper, or even memorize it if you&rsquo;re so inclined (though those methods are prone to errors).</p> <p>But one safer option is to go to a site like bitaddress.org, which is a client-side application to create a public/private key pair.</p> <p>This is important, because once you load the page you can actually disconnect your computer from the Internet entirely, ensuring that no one is spying or sniffing on your activity.</p> <p><em>(There are other steps you can take to be even more secure, like setting up a stand-alone virtual machine solely for creating a wallet&ndash; but we&rsquo;ll save those for another time.)</em></p> <p>The page will go through a process to generate a key, and when prompted, you can choose the &ldquo;paper wallet&rdquo; option.</p> <p>At that point you can simply print your paper wallet, put it in your home safe (or wherever you store your other valuables), and <strong>never give it to anyone</strong>.</p> <p><strong>Once you&rsquo;ve secured your paper wallet in your safe, the bulk of your crypto wealth is offline and safe from computer glitches or hacks.</strong></p> <p>And the next time some poor soul loses his hard drive&hellip; or another major Bitcoin exchange gets hacked&hellip; you can rest assured that your crypto wealth is safe.</p> <p>*&nbsp; *&nbsp; *</p> <p><em>If you are interested in speculating in Cryptocurrencies, I encourage you to <a class="tve_evt_manager_listen tve_et_click" href="https://www.sovereignman.com/lm-crypto-main" style="color: #337ab7;">download our free Crypto Currency Report - A Different Perspective on Crypto</a>. More and more people want to dive into crypto currencies and everyone&rsquo;s focus is on Bitcoin&rsquo;s price. But, the price is not what matters... I see so many people make the same wrong assumptions and mistakes <strong>that could be fatal to their capital</strong>. That&rsquo;s why my team and I have written <a class="tve_evt_manager_listen tve_et_click" href="https://www.sovereignman.com/lm-crypto-main" style="color: #337ab7;"> this special report where I share a different perspective on cryptocurrencies</a> .</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="600" height="313" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171214_btc.png?1513272218" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-14/concerned-about-bitcoin-security-try#comments Alternative currencies Bitcoin Bitcoin Cryptocurrencies Cryptocurrency wallet Currency Digital currencies encryption Finance Financial technology Legality of bitcoin by country or territory Money Mt. Gox private key private key system public key secret key SSL virtual machine Thu, 14 Dec 2017 19:15:00 +0000 Tyler Durden 609163 at http://www.zerohedge.com Robots Purge Homeless From San Francisco Sidewalks http://www.zerohedge.com/news/2017-12-13/robots-purge-homeless-san-francisco-sidewalks <p>As the <a href="http://www.zerohedge.com/news/2017-11-06/homeless-explosion-tech-boom-surging-rents-creating-homeless-crisis-americas-west-co">homeless crisis on America&rsquo;s&nbsp;West Coast forces many cities to the financial brink</a>, <strong>one innovative animal shelter in San Francisco is using a low cost, high-tech robot security guard to shoo away the homeless outside its facilities,</strong> the&nbsp;<a href="https://www.bizjournals.com/sanfrancisco/news/2017/12/08/security-robot-homeless-spca-mission-san-francisco.html">San Francisco Business Times</a> reported.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/2017-12-13_12-09-55-2.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/12/13/2017-12-13_12-09-55-2_0.png" style="width: 500px; height: 439px;" /></a></p> <p>The San Francisco branch of the SPCA (the Society for the Prevention of Cruelty to Animals) contracted&nbsp;Knightscope to provide a k5 robot (the same model which in July <a href="http://www.zerohedge.com/news/2017-07-17/robot-security-guard-commits-suicide-mall-fountain">commited suicide at a mall fountain</a>) for securing the outdoor spaces of the animal shelter.&nbsp;Knightscope&rsquo;s business model allows the SPCA to rent the robot for around $7 an hour, which is about $3 less than the minimum wage in California. According to San Francisco Business Times,&nbsp;the robot was deployed as a &ldquo;way to try dealing with the growing number of needles, car break-ins and crime that seemed to emanate from nearby tent encampments of homeless people.&rdquo;</p> <p>The robot, weighing in at 400 pounds and standing over 5 feet tall and 3 feet wide,&nbsp;has been autonomously patrolling the sidewalks of the facility with a top speed of 3 MPH for more than a month, as far as we can tell. Sensors and fancy technology integrated&nbsp;with-in the robot are used to deter the pesky homeless from setting up shop.</p> <p>Jennifer Scarlett, president of the SPCA told the Business Times: &ldquo;We weren&rsquo;t able to use the sidewalks at all when there&rsquo;s needles and tents and bikes, so from a walking standpoint I find the robot much easier to navigate than an encampment.&rdquo;</p> <blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">Here it is in action <a href="https://t.co/nSBQUmKwk1">pic.twitter.com/nSBQUmKwk1</a></p> <p>&mdash; Sam Dodge (@samueldodge) <a href="https://twitter.com/samueldodge/status/939627122561134592?ref_src=twsrc%5Etfw">December 9, 2017</a></p></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p>One resident was &ldquo;freaked out&rdquo; as the robot patrols the parking lot of the facility.</p> <p><iframe allowfullscreen="" class="__youtube_prefs__" data-no-lazy="1" data-skipgform_ajax_framebjll="" height="360" id="_ytid_60040" src="https://www.youtube.com/embed/70m9icASDAg?enablejsapi=1&amp;autoplay=0&amp;cc_load_policy=0&amp;iv_load_policy=1&amp;loop=0&amp;modestbranding=0&amp;rel=1&amp;showinfo=1&amp;theme=dark&amp;color=red&amp;autohide=2&amp;controls=2&amp;playsinline=0&amp;" title="YouTube player" width="480"></iframe></p> <p>Another resident caught the robot cruising down the sidewalk at top speed.</p> <p><iframe allowfullscreen="" class="__youtube_prefs__" data-no-lazy="1" data-skipgform_ajax_framebjll="" height="270" id="_ytid_93365" src="https://www.youtube.com/embed/b_xr5VlH-sY?enablejsapi=1&amp;autoplay=0&amp;cc_load_policy=0&amp;iv_load_policy=1&amp;loop=0&amp;modestbranding=0&amp;rel=1&amp;showinfo=1&amp;theme=dark&amp;color=red&amp;autohide=2&amp;controls=2&amp;playsinline=0&amp;" title="YouTube player" width="480"></iframe></p> <p>The social media reaction, on the other hand, has been overwhelmingly negative, shaming the SPCA for deploying the robot for targeting the homeless, while some blamed capitalism.</p> <blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">Dear San Francisco,</p> <p>It is your duty to destroy these things if you see them. <a href="https://t.co/VZ1vWe5KyM">https://t.co/VZ1vWe5KyM</a></p> <p>&mdash; Leslie Lee III (@leslieleeiii) <a href="https://twitter.com/leslieleeiii/status/940678960144371713?ref_src=twsrc%5Etfw">December 12, 2017</a></p></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">Yes, 2017 was the first time I saw robots used to prevent encampments in SF. Hard to believe but it&rsquo;s real. <a href="https://t.co/Xo41veNfPN">https://t.co/Xo41veNfPN</a></p> <p>&mdash; Sam Dodge (@samueldodge) <a href="https://twitter.com/samueldodge/status/939625952639836160?ref_src=twsrc%5Etfw">December 9, 2017</a></p></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" data-lang="en"><p dir="ltr" lang="en">Capitalism: instead of providing homes for homeless people, spend exorbitant sums of money creating robots that will prevent homeless people from making homes for themselves<a href="https://t.co/FowyreaUTV">https://t.co/FowyreaUTV</a></p> <p>&mdash; Ben Norton (@BenjaminNorton) <a href="https://twitter.com/BenjaminNorton/status/940742098034331648?ref_src=twsrc%5Etfw">December 13, 2017</a></p></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p>Nevertheless, San Francisco recently voted on a bill to decrease the number of robots on city streets. According to the San Francisco Business Times, the city could charge the SPCA a fine upwards of $1,000 per day for not complying with the new regulations operating on city-owned sidewalks.</p> <p>In a particularly dystopian move by the SPCA, the autonomous robot purging the homeless from city streets in San Fransico may be a harbinger of what is coming to America&rsquo;s inner cities as the humans slowly but surely lose the war against robots, first in the labor market and then, everywhere else.</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="694" height="397" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/robot%20san%20fran%20teaser.jpg?1513195492" /> </div> </div> </div> http://www.zerohedge.com/news/2017-12-13/robots-purge-homeless-san-francisco-sidewalks#comments Autonomous robot California Geography of California Homelessness Robot San Francisco Society for the Prevention of Cruelty Society for the Prevention of Cruelty to Animals SPCA Structure Twitter Twitter West Coast Thu, 14 Dec 2017 19:03:11 +0000 Tyler Durden 609096 at http://www.zerohedge.com