http://www.zerohedge.com/fullrss2.xml/default en Subprime Auto Delinquencies Jump 17% In July, Net Losses Soar 28% http://www.zerohedge.com/news/2016-08-25/subprime-auto-delinquencies-jump-17-july-net-losses-soar-28 <p>There was a troubling development at the end of July, when as we noted at the time, the largest US subprime auto lender delayed its Q2 earnings released due to "Accounting matters", an event which promptly raised red flags not only over the fate of the company (whose stock plunged as a result), but the entire US subprime auto space. </p> <p>This is what SC said as justification for its 10-Q filing delay:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC" or the "Company") announced today that it will delay the release of its Q2 2016 financial results, previously scheduled for Wednesday, July 27, 2016, because the Company's financial statements for the quarter have not yet been completed. </p> <p>&nbsp;</p> <p>The Company is in <strong>discussions with its current and previous independent accountants regarding certain accounting matters, primarily related to the Company's discount accretion and credit loss allowance methodologies</strong>. The resolution of these matters may impact prior period financial statements and the timing of the filing of the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2016 (the "Form 10-Q"). </p> <p>&nbsp;</p> <p>The Company is working diligently to file the Form 10-Q and schedule its earnings call as soon as practicable.</p> </blockquote> <p>One month later, the accountant discussions continue, as yesterday the <a href="http://investors.santanderconsumerusa.com/news/Press-Release-Details/2016/Santander-Consumer-USA-Holdings-Inc-Provides-Update-on-Form-10-Q-Filing/default.aspx">company provided the following terse update</a> in which it said that it delays its 10-Q past the August 15 deadline, adding that "the Company will file the Form 10-Q as soon as possible" and that "the aforementioned accounting matters relate only to non-cash items in our financial statements<strong>&nbsp;</strong>." </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Santander Consumer USA Holdings Inc. (NYSE: SC) ("SC" or the "Company"), is delaying the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 (the "Form 10-Q") beyond the August 15, 2016 extended filing date.</p> <p>&nbsp;</p> <p>As previously disclosed by the Company in its Form 12b-25 filed with the Securities and Exchange Commission (the "SEC") on August 9, 2016, the Company is in the pre-filing submission process with the SEC's Office of the Chief Accountant, <strong>regarding the Company's accounting treatment for consideration of net discount in estimating the allowance for credit losses</strong>. The resolution of this and other accounting matters disclosed in the Form 12b-25 is expected to impact prior period financial statements. <strong>The Company will file the Form 10-Q as soon as possible.</strong></p> <p>&nbsp;</p> <p>The Company has reviewed all critical relationships and does not foresee a material interruption in or change to normal business activities related to the delayed filing. <strong>In addition, the aforementioned accounting matters relate only to non-cash items in our financial statements</strong>. If the outcome of the pre-filing submission process is consistent with the Company's proposed accounting treatment, the Company expects to file its Form 10-Q immediately.</p> </blockquote> <p>So we continued to wait. Meanwhile, <a href="http://www.businesswire.com/news/home/20160825005643/en/Fitch-U.S.-Subprime-Auto-ABS-Delinquencies-Losses">today Fitch released </a>its latest auto subprime report according to which things in the auto subprime space are going from bad to worse, warning that "the seasonably slow summer months <strong>are translating to notable increases in annualized losses and delinquencies for U.S. subprime auto loan ABS</strong>."</p> <p>The details: <strong>subprime 60+ day delinquencies rose 13% month-over-month (MOM) in July to 4.59%, and were 17% higher versus a year earlier. </strong>This rate was just shy of the record peak 5.16% level recorded in early 2016. </p> <p>Fitch also adds that <strong>subprime ABS annualized net losses (ANL) </strong>hit 7.39% in July rising 17% MOM, <strong>and were 28% higher year-over-year (YOY).</strong> </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The summer months typically produce weaker asset performance as consumers head for vacation. Increased losses are emanating from weaker collateral pools in the 2013-2015 transactions, which have weaker credit quality including lower FICO scores, higher amounts of extended loan terms (over 60 months) and higher LTVs. Further, early defaults on extended term loans in pools are driving loss severity higher along with loss rates in 2016. </p> </blockquote> <p>What is curious is that Fitch states that used vehicle values "continue to defy expectations in 2016 and remain healthy." This is rather different from what we reported recently when we observed that used car <a href="http://www.zerohedge.com/news/2016-04-11/used-car-price-plunge-could-bring-whole-house-cards-down">prices have been sliding</a>. Perhaps Fitch is using a different database, however despite its assessment,&nbsp; Fitch expects used vehicle values <strong>will be pressured in the latter stages of 2016 and come down from current levels. </strong>"Rising used vehicle supply, including from notable increases in residual returns expected in 2016 and early 2017, will constrain values and contribute to losses rising."</p> <p>This means that the auto industry, always pressured by a substnatial inventory overhang, will be hit by the double whammy of both declining residuals and the ongoing subprime crunch as increasingly more loans shift to delinquent status. It also means that it is only a matter of time, and accumulated defaults, before the only silver lining in the US manufacturing sector turns dull.</p> <p>In the meantime, we eagerly look forward to Santander's delayed 10-Q to be finally filed. </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="572" height="309" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/repossesion.jpg?1472144308" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/subprime-auto-delinquencies-jump-17-july-net-losses-soar-28#comments Fitch Loss Severity Securities and Exchange Commission Thu, 25 Aug 2016 19:13:16 +0000 Tyler Durden 570600 at http://www.zerohedge.com Jackson Hole'd - A New Monetary Order Looms http://www.zerohedge.com/news/2016-08-25/jackson-holed-new-monetary-order-looms <p><em>Via ConvergEx&#39;s Nicholas Colas,</em></p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Just what goes on at the annual Kansas City Fed economic symposium in Jackson Hole?&nbsp; <strong>The short answer is &ldquo;Generally, not much&rdquo;.&nbsp;</strong></p> <p>&nbsp;</p> <p>Will this year&rsquo;s confab be any different, with Chair Yellen slated to speak&nbsp;on Friday?&nbsp; <strong>Fed Funds Futures markets don&rsquo;t think so, with just an 18% chance of a rate hike at the September FOMC meeting and coin-toss odds of a bump in December.</strong></p> <p>&nbsp;</p> <p>The title of this year&rsquo;s Jackson Hole proceedings is, however, telling: &ldquo;Designing Resilient Monetary Policy Frameworks for the Future&rdquo;.&nbsp; Merriam-Webster defines &ldquo;Resilient&rdquo; as: 1) able to become strong, healthy, or successful again after something bad happens 2) able to return to an original shape after being pulled, stretched, pressed, bent, etc.&nbsp; <strong>So what does the Fed have in mind when it considers the need for future resilience?&nbsp; Perhaps this year&rsquo;s Jackson Hole conference (or its title, anyway) will offer more clues to future policy than just Chair Yellen&rsquo;s talk.</strong></p> </blockquote> <p><strong>While the Kansas City Fed&rsquo;s annual conference in Jackson Hole is safe for this year, come 2017 they are going to have some competition for hotel rooms and other local resources; there is a full eclipse of the Sun scheduled on August 21st.&nbsp;</strong> Local papers report that civic leaders are already working through plans for an additional 40,000 visitors/day to Jackson for the entire week around the &ldquo;The Great American Eclipse&rdquo;, the moniker the event now carries.&nbsp; Here is a quick article from a local newspaper, highlighting the one (quite unexpected) &ldquo;facility&rdquo; that locals are most anxious to reserve: <a href="http://info.convergex.com/e1t/c/*V9FFVw31vrZMW7DGRt954wZs_0/*W3HBW3p5fkmr8W81RlNf6Ynk_B0/5/f18dQhb0S1Wc2frcnpVWnxK61CWFlpN52DQ7MbVxTWW2Q4DgB8GpmQnW4DnzVH1tr7-dVs5xGJ3M5VPTW7wYTmF21rwyCW5vKXF33z7GswW3xWRGT37Zj3QW66jCb57yKWMdVh1WGh29W7wnW2hgqZw2b5LLFW12Pwn25JqK8fW987Jyr2BZGtdW2Z--Rk761lpbW2CZZdK68xb7rW3XTsRN8NPtPtN22396KLPRSmN1mFlRvk3cxzMjVXptnSwQvN2D-48QMcydgW7F4JFb5hdKG6W3Yw_zj4gk3wcW1XVNLy8J2XnwW5F2fLB8KGNlQN7Cwk3WVWr70N4WrlNjHGgcNW2CCGg_9k54HlW1Nqk5M6RFkMmW1d2bCq4JjqjGN62F7w8G5bp9W6j0np84MKD_HW4djPm5363hvnW8Q7Yww3lzzXgW7F6fG36Mcw7TVGllrg2sT4p9W8WK-sY4nFGtxW3QfJ8n667JmQVKD1jr24tMW0W661cdl3HCFqzN2N94xVdPVL6W75fPkj2bDDSwW9cbP9S1Q2dWdW88YvzY3CVprKN3fxTQm7vqYvW41wP_34sdv0cW2XWFBT1g4kWFW6QD5Cy6QZprSW7JVrSy7s914wW43MvMG5stVYxW978kBt5Sm00SW8HLpdw9k5ygQW6FtsBW97nY7Vf5QTfgt02" target="_blank">http://www.jhnewsandguide.com/news/town_county/solar-eclipse-will-bring-more-than-just-darkness/article_f227e356-030b-5b68-a71a-b363564dc8ce.html</a></p> <div> <div> <p><strong>The Kansas City Fed has been holding its annual symposium since 1978, but only moved the show to Jackson Hole in 1982 in conjunction with a change in focus.&nbsp;</strong> Prior to then the central topic was agriculture, a natural focus for the 10th&nbsp;district.&nbsp; The leadoff talk at the first KC Fed conference was &ldquo;World Trade and the Small Farmer: Can They Co-Exist?&rdquo;&nbsp; Anxious to draw avid fisherman and Fed Chair Paul Volcker to the meeting, they changed the location to Wyoming and the content to general macroeconomics.&nbsp; The first speech at the new venue in 1982: &ldquo;Issues in the Coordination of Monetary and Fiscal Policies&rdquo;.&nbsp; (A title that we may never see again, if current trends continue.)</p> <p><strong>As for this year&rsquo;s event, the spotlight is on Chair Yellen&rsquo;s talk&nbsp;on Friday.</strong>&nbsp; But what else is going on?&nbsp; Here&rsquo;s a quick summary of the event as a whole and a bit more history:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>The conference is held at the Jackson Lake Lodge, which is owned by the National Park Service but operated by a private company</strong>.&nbsp;If you want to check out the rooms and amenities, click here:&nbsp;<a href="http://info.convergex.com/e1t/c/*V9FFVw31vrZMW7DGRt954wZs_0/*W60PT-11HjPCvW5_BP_t27PcYZ0/5/f18dQhb0Sjvm9ctxLgW6_q2n22YX2vxW7XTdmv7F0mcfW745BZ35-VBlWW7WM-gw6Wp5-cW1M5pSN2jH3nGW1bwcJt1vkh1cW67zT8M6jy40rW6gDSwD5mhQtpW3sDbZ_30XKxvW5S0D-95B66LvW60tvPr32HdrTW8nHshD2MTPSpW8W2c9W32CWGNW8X527V36C1cyW1SdKWJ5n773ZW95lffC557zJwN6kPnzNrTL0yN7YmlZ7P4HghW4b_rKw7MbC69VYKm5s4KkM2KN1CMMqW18qyBW5w8LYs7Y5CFZW8nDxtr3XB2MpW64QPst6jfLc7W1RT2qp6bVy-5W25PPnx6ltvRbW7nwG0k6bnMRgW4WTdK67P1-wWN33FK-yqPkxDVnjZC84h6KFNW32gYV06WpvhYN1Wc1jDHLxXpW6X0J-78ksV0CW1Cyqx48WKw-qW5L9RQC1SL6yVW6VWwLL33dk18W2K-PxG4QrCtVW7sxXGd2MnsNRW1FVJj76Yht6ZW5np21_2KWlS4Vn3PbL2S7fGJW2p8_TT7-cq4LW46pwVF3ygvH8N8c3mphGVfQgW2HnQ9q2KmvqwW2F5FrB3srYjbV10Nbd5x6QYpW4vYpDF6Wj8Q8VngQCV9fByqHW6XSYqX10xXcwW1Z_kGW7RVc8dN3wLfM417Pszf6jGWqn03" target="_blank">https://www.nationalparkreservations.com/lodge/grandteton-jackson-lake-lodge/?utm_source=msn&amp;utm_medium=cpc&amp;utm_term=jackson%20lake%20lodge&amp;utm_campaign=GrandTeton%20Opt%20New</a></p> <p>&nbsp;</p> <p><strong>The KC Fed has a list of all previous symposia, their topics and speakers here</strong>: <a href="http://info.convergex.com/e1t/c/*V9FFVw31vrZMW7DGRt954wZs_0/*W7NCh9C6-08YfW6pGkyj1kdfJ50/5/f18dQhb0S1Wd6Sx-yGMVWrR1F2sMWN1l5nn8dtmkdW3fLY-n7fL5D9W87TYt885CGH9W2Jq2N55CYXmFW4_LPTp7RGrj6MRVjzH6-wBYW1L-r2l73qfMtW46Ktf62TCxVfW4LCLkB2YGHY9W1Yb0nD3fc1GrW8glrTs1wfKx4N5-fsTCSChzyW51mLx919Cnf6W3Q4sqL1lB2c2W2-D-mK8b1Y8yW5h9ktC8qJBLwW7ZkDJ46M62JwW25wgp-8TkZGYW82k_657Sqr-jW4ttY1w1c2nYKW4tJDyM6wK2s9W3Tbh3F3C2z4PW96qn_N3d5PcRW7b10FK6k5pWLW4Shz531g8MFwW7RRqgl5CHnTMW37-bbY47lcGmW8hSBsZ4xXGHYN8JGGgx48wCpN6JjJNPYdF7ZW213NXG4Z1l6BW14Mbl74znr18W1wVpt08plbNWW5JydsW7Xg7nqW28JtRp3q6Xt9W6NQTnB39y7GcW5QmyF25mtT_3W2Jq_J83hKmq2VxDXl04vkxGvW5VBq6C4ncvpDW1WS8q241pr25W72G1z_78rc6BW8j_BRz6ZSq8fW11tKvP1XZd-DW6yJ39648YJTM0" target="_blank">https://www.kansascityfed.org/publications/research/escp/symposiums/escp-archive</a></p> <p>&nbsp;</p> <p><strong>There is no agenda yet available on the website for this year&rsquo;s meeting, but the general cadence of events is easy enough to determine from prior years&rsquo; proceedings</strong>.&nbsp;Things kick off&nbsp;Thursday&nbsp;evening with a dinner.&nbsp;&nbsp;Friday&nbsp;morning the group reconvenes at&nbsp;8am, hears three papers and accompanying panels, then lunch. Afternoon off, then meet up again&nbsp;Saturdaymorning for three more papers and panels and lunch.&nbsp; That&rsquo;s about it.</p> </blockquote> <p><u><strong>The symposia titles do give a small window into the macroeconomic narratives of the day</strong></u>.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>In 1984, &ldquo;Price Stability and Public Policy&rdquo;.</p> <p>&nbsp;</p> <p>In 2001: &ldquo;Economic Policy for the Information Economy&rdquo;.</p> <p>&nbsp;</p> <p>In 2007, &ldquo;Housing, Housing Finance and Monetary Policy&rdquo;.</p> <p>&nbsp;</p> <p>In 2009, &ldquo;Financial Stability and Macroeconomic Policy&rdquo;.</p> <p>&nbsp;</p> <p>And if you&rsquo;re now thinking the unkind notion that the Fed can be behind the curve, consider that (at least) in 1998, they were forward thinking enough to title the conference &ldquo;Income Inequality Issues and Policy Options&rdquo;.</p> </blockquote> <p><strong>In the narrowest sense &ndash; the one that markets care most about, anyway &ndash; this year&rsquo;s Jackson Hole conference is about one thing: what will Chair Yellen say about interest rates?</strong>&nbsp; Capital markets prices tell us to expect very little new information.&nbsp; Fed Funds Futures have been discounting a low likelihood of a rate increase at the September FOMC meeting (18% currently) and essentially a coin flip at the December meeting.&nbsp; Those odds haven&rsquo;t changed much in weeks...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/19/20160824_JHOLE2.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/19/20160824_JHOLE2_0.jpg" style="width: 600px; height: 299px;" /></a></p> <p>&nbsp;</p> <p><u><strong>Yet the title of this year&rsquo;s Jackson Hole meeting &ndash; &ldquo;Designing Resilient Monetary Policy Frameworks for the Future&rdquo; &ndash; is a telling one.&nbsp;</strong></u> It is actually a call to a specific goal, rather than the generic &ldquo;Inflation Dynamics and Monetary Policy&rdquo; (2015) or &ldquo;Re-Evaluating Labor Market Dynamics&rdquo; (2014) or even the outstandingly bland &ldquo;The Changing Policy Landscape&rdquo; (2012).&nbsp; <strong>You get the feeling that the Fed has something on its mind&hellip;</strong></p> <p>&nbsp;</p> <p><strong>And even if it doesn&rsquo;t, plenty of other senior policy folks seem to be raising their hands.</strong>&nbsp; Former Chair Ben Bernanke recently penned another one of his blog entries, called &ldquo;The Fed&rsquo;s shifting perspective on the economy and its implications for policy&rdquo;.&nbsp; His summary:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;It has not been lost on Fed policymakers that the world looks significantly different in some ways than they thought just a few years ago, and that the degree of uncertainty about how the economy and policy will evolve may now be unusually high.&rdquo;</p> </blockquote> <p><u><strong>Translation: Fed projections have been wrong, and the central bank doesn&rsquo;t know how to make them any better in the future</strong></u>.&nbsp;Bernanke&rsquo;s takeaway advice to investors: there is &ldquo;Less benefit in parsing statements and speeches and more from paying close attention to the incoming data.&rdquo;&nbsp; No one knows nothing&hellip;&nbsp; Full text here:&nbsp;<a href="http://info.convergex.com/e1t/c/*V9FFVw31vrZMW7DGRt954wZs_0/*VbssfC6JrykFW1XPQ5t40QwRd0/5/f18dQhb0S1W97wjzHDVWVC-q2_V3TPW1fKpBL3xxKrYW2jYL346RGGM7W6KnDdY3VGBwZN3M9Dv5XMcMLW5D3sgg4qFNJlW1v7XN68Q7QvhVbWvYS6351BdW6N5D5v8QjTzFW76P6S18Mln9qW6ljxP_3zPrhJN84T6dPr66n8W1VRZ714__DvYW1Yb2ss2X-cQ2W1xGYqq2tlsCDW2W8jQT11hrj5W8q6-FF3JF_xvW4c95PM7bRmq-VjVfhc2ns1ZVW2pyQYz1bF86jM1fn6KtPyQQW5Yl1dT6wrN2NN64xV2RqNg_2W5V373R2P68NvW4yRm4Y4Zyb1lW1qHHZC5lfHFwW39Z85l1P5WzXW1mhQc34N4v2cVtjxvX4ggc5qW5Y4qM73cvDKjVvmJHD7rWTp3W2v9C5r7tbJFyW7Tvnx-4zv_16W69km4X3pRR_9W3hWCQt1tNXMBW2j08YB1ZtMWPW5VbN8r1kMMCpW8pHVyS46WkhgW6GX1XF3mqDVpW170-nm6wnhwgW181kHx8trgBWW4lc0-p6VS3ZcW1Rvjmd59Tz57W3KPqZn3pfdbKW6PgjqN5hJc-4W4M_WSb3r2k9FW83wj713Z2S3tW8SnnsG7zHjM4W7qlLdQ5cWpkBW4wFZh-5PL41bW92jxGV8S3dTjW9lgTWJ3lW-rq103" target="_blank">https://www.brookings.edu/blog/ben-bernanke/2016/08/08/the-feds-shifting-perspective-on-the-economy-and-its-implications-for-monetary-policy/</a></p> <p>Or, as another example, consider the recent paper by Fed staff economist David Reifschneider that asks the question <em><u><strong>&ldquo;What if there is a U.S. recession before the Federal Reserve has the chance to raise Fed Funds back to normal?&rdquo;</strong></u></em>&nbsp; This seems a topic that directly addresses the spirit of the Jackson Hole Conference about &ldquo;Resilient&rdquo; policy.&nbsp; Reifschneider&rsquo;s answer: altering the Fed&rsquo;s policy of forward guidance and providing quantitative easing/bond buying.&nbsp; <strong>Not exactly comforting, that&hellip;</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/19/20160824_JHOLE5.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/19/20160824_JHOLE5_0.jpg" style="width: 600px; height: 301px;" /></a></p> <p>&nbsp;</p> <p><em>You can read a summary of the paper here:&nbsp;<a href="http://info.convergex.com/e1t/c/*V9FFVw31vrZMW7DGRt954wZs_0/*W3D_Sf992lhNGW6f9vD03SVd6P0/5/f18dQhb0S1Xm2WJLfhW12P5g_1gdh8_W73hX4z67ybm0W5CKRZ77KYLjCW4cg-WX6tQ37MW3sF6d-6Kx8vjW9dWfj_7Sk-nXW4d88Tg7ZdqWtW176shv3vrB0HW7c6PpP5NP9d2W4374Wr94hp_ZW6_bwB76mHgQ_W8q0KxK6g4MKmW7RC1sq38sS6HW6HY8JV6gWLmPW1-BbZH512WkkW35r9-52KNz4TW334CQh6lmXMcW7f-cN63Brjv_W5yY5ZB1RPGhvW2zHgv_3BYqV2N5C1Y3q2vT4HW6NkMpV3WTn6xW1YLM737N5nxJW8czCps95kPNZW3TK-f02Z31FMW2HLW2-53GfTZW6FjcNW42jzd0W5BrG1n1G9T25VlG7X43KsVbKW1PdXmq8sCGG1W4fnLG47Z_gbbW4YlsNb44S2vYW1mSTM610c153W1Jc5Nw3H0FK3W7B4fJv59McvNN1XtDhN9qQS9W3V3WJ-6CzMXZW4BvTw32TWWdTW7kKl3X4ZNx0cN5yhzZXTVNvKW8XVFJX4GLlJPW57H7WQ4ryl5xW6vHtd_76C3Z5W4mp5rf7_j_JCMFDGTjmWsdpW62KzFZ4dzqySW7rW5T75PLfz5W6qVslM6WXf-3W8TlBQZ81VSJJW4DYZ7g15WCR2VBdvtk3FBYhK103" target="_blank">http://www.bloomberg.com/news/articles/2016-08-22/a-new-paper-reveals-the-fed-s-policy-impotence-if-another-recession-hits-soon</a></em></p> <p><em>And the whole thing here:&nbsp;<a href="http://info.convergex.com/e1t/c/*V9FFVw31vrZMW7DGRt954wZs_0/*W9dX9Dh1cl_J7Mv9hMb3KyHl0/5/f18dQhb0Sq5w8Y9YHMW4GJ9MM5VQHwrW6vCBSB5WXg0KW4R4LHY57mvC2W1BQYgz8Tm-BYW7NrNFv79Yh0sW8hy-HF35bZv-W1TCZYR9cHK9kW1nmYRt17tLR0W43PqQz64N6fQW5n6FgT5zC6xHVSbD4M61g8TFW8mp2bw8p-Vr0W65kblz8p_CSBN8r4wwSPcP7xV296J27ZX1K2W5ZpycS57-ZBTW83C5JP6rY-3sW2KQ2YY1Gj30RW3yZyRb51G7FkW8tpFjp3X0g0yN6bp1cMbq5fxW4TKc2l8RwBk-W51TL9G1p7D-5W8Q_vbP6mXKlvW521mv18xVvgPN6QlRnKbrn53W7Ykqmh5DGcLWW5vzCd14D9tbqW7lCCrH4VgHJ0W3zqS1L5PrDLCW8QMpn98qxPyGW8K8L7V6PYMc3W3gBjMN15kzZLW1bBvW33_8_X4W6LMv7K1NFfl4N8P4D7llXWGdW5_MT2061LHFZW60TZQt8BtbzDVq45Kk4c-1XlW6PY1Zp72WfFLW6q1Cv47MPdMmW7Lxbwk6ZgkqnW3gvV5f3XtbG-DvHVknlVzPdWgd9v03" target="_blank">http://www.federalreserve.gov/econresdata/feds/2016/files/2016068pap.pdf</a></em></p> <p><strong>In the end, the most notable thing about this year&rsquo;s Jackson Hole conference comes down to that one word in the title: &ldquo;Resilient&rdquo;.&nbsp;</strong> The origins of that word are from the Latin: resilire, to &ldquo;leap back&rdquo;.&nbsp; In modern usage, it means to spring back after a difficult time, or in the case of a physical object the ability to recover an original shape after bending, stretching or compression.</p> <p>What challenges does the Fed see ahead?&nbsp; Even by former Chair Bernanke&rsquo;s own thinking, the central bank has little ability to forecast the U.S. economy reliably.&nbsp; <u><strong>Perhaps &ldquo;Resilience&rdquo; is the new &ldquo;data dependent&rdquo;&hellip; A goal rather than a specific direction.</strong></u></p> </div> </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="964" height="483" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160824_JHOLE5.jpg?1472141637" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/jackson-holed-new-monetary-order-looms#comments Ben Bernanke Ben Bernanke Bond Capital Markets ETC Federal Reserve Monetary Policy Newspaper Paul Volcker Quantitative Easing Recession World Trade Thu, 25 Aug 2016 18:55:00 +0000 Tyler Durden 570597 at http://www.zerohedge.com Dear Congress: Have You Received Money From These Pharma Companies http://www.zerohedge.com/news/2016-08-25/how-much-lobby-cash-congress-has-recived-pharma-industry <p>We have been following the latest melodrama involving a "greedy" Mylan, and numerous "humanistic" US politicians, all the way up to the Democratic presidential candidate, exchange blows over the company's dramatic price increases of its EpiPen anti-allergy medication, with a healthy dose of amusement for one simple reason: if Congress wants to crack down on someone, it should crack down on itself. </p> <p>After all, <em>the only reason </em>Mylan has been able to pass the kinds of price increases that Congress is now blasting it for, is because of US laws and regulations; laws which incidentally, have been determined in Washington's backroom bribe parlor, i.e. the corner offices of thousands of local lobby organizations dispensing with billions of dollars in "client" funds. </p> <p>Clients such as the companies listed below. </p> <p>Which brings us to this question: <strong>dear Congress, have you received millions in lobby dollars from the US pharmaceutical industry. </strong></p> <p>Or perhaps Congress denies that virtually every single pharmaceutical company operating in the US has spent millions on influence peddling pardon lobbying, in recent years? Perhaps, just like in the case of the Clinton foundation <em>defense</em>, that money was not used to buy favors and influence legislation, but was purely for humanitarian reasons? </p> <p>So how much money has the US pharma industry spent? <a href="https://www.opensecrets.org/industries/lobbying.php?cycle=2016&amp;ind=H04">According to OpenSecrets</a>, so far in 2016, the amount is $129 million, rising to $2.3 billion over the past decade.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/lobbying%20pharma.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/lobbying%20pharma_0.jpg" width="500" height="245" /></a></p> <p>&nbsp;</p> <p>Here is a small selection of the 369 lobbying "clients" OpenSecrets keeps track of: one can see Mylan toward the bottom.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/lobby%20clients.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/lobby%20clients_0.jpg" width="500" height="1431" /></a></p> <p>&nbsp;</p> <p>And, as usual, we conclude with our favorite chart showing the relationship between the pharmaceutical industry&nbsp; and Congress, according to which every dollar spent by big Pharma on lobbying <em><strong>generates a return of 77,500%!</strong></em></p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05-2/Lobbying%20ROI.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05-2/Lobbying%20ROI_0.jpg" width="498" height="224" /></a></p> <p>And since virtually all representatives and senators suddenly appear so eager to accuse Mylan and its CEO of greed, we look forward to each and every member of Congress explaining to the American public, and their constituency, precisely where all their lobby dollars have came from, what laws were enacted as a result, and most importantly, what they spent the money on.</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="960" height="470" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/lobbying%20pharma.jpg?1472150463" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/how-much-lobby-cash-congress-has-recived-pharma-industry#comments Thu, 25 Aug 2016 18:41:53 +0000 Tyler Durden 570613 at http://www.zerohedge.com Did Turkish President Erdogan Just Use A False Flag To Justify Invading Syria? http://www.zerohedge.com/news/2016-08-25/did-turkish-president-erdogan-just-use-false-flag-justify-invading-syria <p><a href="http://theantimedia.org/turkish-erdogan-false-flag-syria/"><em>Submitted by Darius Shahtamasebi via TheAntiMedia.org,</em></a></p> <p><strong>On Sunday Turkey experienced its deadliest terrorist attack this year.</strong> A suspected child suicide bomber struck a wedding celebration in the Turkish city of Gaziantep,&nbsp;<a href="https://www.theguardian.com/world/2016/aug/20/several-dead-in-suspected-terrorist-blast-at-wedding-in-turkey" target="_blank">killing at least 54 people and injuring dozens more</a>.</p> <p>Turkish President Recep Tayyip Erdogan immediately blamed ISIS for the attack.<strong> This reaction is especially peculiar given the fact his&nbsp;<a href="http://www.huffingtonpost.com/david-l-phillips/research-paper-isis-turke_b_6128950.html" target="_blank">policies</a> have directly contributed to the growth of ISIS in more ways than one</strong>. His government is reportedly providing ISIS fighters with passage through Turkey, weapons, and medical assistance, to name a few examples.</p> <p><strong>Most interesting, however, is that ISIS has not claimed responsibility for the attack, and as&nbsp;<a href="https://www.theguardian.com/world/2016/aug/20/several-dead-in-suspected-terrorist-blast-at-wedding-in-turkey" target="_blank"><em>the</em> <em>Guardian</em></a> notes, ISIS has not historically claimed responsibility for attacks within Turkish territory</strong>. This is despite ISIS&rsquo; habit of readily praising and&nbsp;<a href="http://time.com/4365507/orlando-shooting-isis-claims-responsibility-terror/" target="_blank">accepting responsibility</a> for almost every Western attack &mdash; even a mass killing as absurd as the Orlando shooting, which realistically had&nbsp;<a href="http://www.nytimes.com/2016/06/14/us/sitora-yusufiy-omar-mateen-orlando-shooting.html?_r=0" target="_blank">nothing to do with ISIS</a>.</p> <p><u><strong>So let&rsquo;s do a little bit more digging.</strong></u></p> <p>According to one&nbsp;<a href="https://www.theguardian.com/world/2016/aug/20/several-dead-in-suspected-terrorist-blast-at-wedding-in-turkey" target="_blank">Turkish Member of Parliament</a>, Mahmut Togrul, <strong>the targets of Sunday&rsquo;s attack in Turkey were predominantly supporters of the pro-Kurdish People&rsquo;s Democratic Party (HDP)</strong>. It is true that <a href="https://www.washingtonpost.com/news/checkpoint/wp/2016/02/02/inside-the-kurdish-fighting-forces-the-u-s-s-proxy-ground-troops-in-the-war-against-isis/" target="_blank">ISIS has been battling the Kurds</a> for some time now. However, the Kurds &mdash; specifically the HDP &mdash; have another powerful enemy.</p> <p>As the&nbsp;<a href="http://www.telegraph.co.uk/news/worldnews/europe/turkey/11655915/How-Turkeys-pro-Kurdish-party-could-stop-the-presidents-push-for-more-power.html" target="_blank"><em>Telegraph</em></a> reported in 2015, the <strong>biggest threat to Turkey&rsquo;s president obtaining unilateral control of the country during the 2015 elections was the HDP.</strong> In an article entitled &ldquo;<a href="http://www.huffingtonpost.com/john-a-tures/how-erdogan-enabled-isis_b_10727212.html" target="_blank">How Erdogan Enabled ISIS To Attack The Turks</a>,&rdquo; <em>The Huffington Post</em> reported in June of this year that the HDP won enough votes in June of 2015 was enough to <em>&ldquo;derail Erdogan&rsquo;s plan to create a powerful presidential system that would benefit the Turkish leader and his family.&rdquo;</em> The HDP did so well that their success would deny Erdogan&rsquo;s political party a majority for the first time in more than a decade.</p> <p>The threat the Kurdish movement poses to Erdogan&rsquo;s control of Turkey is further demonstrated by his policy of&nbsp;<a href="http://www.bbc.com/news/world-middle-east-33690060" target="_blank">heavily bombing Kurdish territory</a> in Syria, despite the fact that Washington <a href="http://www.hurriyetdailynews.com/syrian-regime-forces-bomb-kurds-in-north-for-first-time.aspx?pageID=517&amp;nID=102997&amp;NewsCatID=352" target="_blank">regards</a> the Kurds as the most effective fighting force against ISIS. As noted by the <a href="http://www.huffingtonpost.com/john-a-tures/how-erdogan-enabled-isis_b_10727212.html"><em>Huffington Post</em></a>, Erdogan would regularly link the HDP to the fighting force known as the Kurdistan Workers&rsquo; Party (PKK), regarded by some as terrorists.</p> <p><strong>Erdogan then blamed the subsequent terrorist attacks that <a href="http://www.reuters.com/article/us-turkey-explosion-idUSKCN0S407020151010" target="_blank">occurred late last year</a> and earlier this year on the Kurds, <a href="http://www.upi.com/Top_News/World-News/2016/02/18/Erdoan-blames-Syrian-Kurdish-PYD-for-Ankara-bombing-separate-blast-kills-6/6711455793985/" target="_blank">despite the fact that they in turn denied responsibility</a>.</strong></p> <p><u><strong><em>Sound familiar?</em></strong></u></p> <p>Even at the time of this article&rsquo;s publishing, ISIS&rsquo; responsibility for the wedding attack has still not been confirmed. This is illustrated by&nbsp;<a href="http://edition.cnn.com/2016/08/21/asia/turkey-wedding-explosion/" target="_blank"><em>CNN</em></a>&rsquo;s reliance on Turkey-based journalist Andrew Finkel. As <em>CNN</em> reported:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><em>&ldquo;He said there were a number of reasons the Sunni terror group &ndash; </em><strong><em>if it is responsible for the attack</em></strong><em> &ndash; could have been motivated to strike Kurdish targets.&rdquo;</em></p> </blockquote> <p><strong>To date, the only person convinced of ISIS involvement is&nbsp;<a href="http://edition.cnn.com/2016/08/21/asia/turkey-wedding-explosion/index.html" target="_blank">Erdogan himself</a>. </strong>When corporate media has to quote an official to infer someone&rsquo;s responsibility for an attack, it often means there is no actual evidence for that person or groups&rsquo; involvement. If there was evidence, the headline would presumably run with that evidence &mdash; not the&nbsp;<a href="http://edition.cnn.com/2016/08/21/asia/turkey-wedding-explosion/index.html" target="_blank">official&rsquo;s statement</a>. A good example of this was when the mainstream media ran stories stating&nbsp;<a href="http://www.timesofisrael.com/kerry-strong-evidence-syria-used-chemical-weapons/" target="_blank">John Kerry was certain of the Assad regime in Syria using chemical weapons</a>. Yet no proof was actually offered, and if anything, the <a href="http://www.lrb.co.uk/v35/n24/seymour-m-hersh/whose-sarin" target="_blank">intelligence was fabricated</a>.</p> <p>If the Turkish authorities have proof that ISIS committed the attack, considering the group is obsessed with claiming all manner of attacks against their enemies, surely Erdogan could present it.</p> <p><u><em><strong>If not, what is really at play here?</strong></em></u></p> <p>What we do know is that <strong>the targets of the attack were supporters of a political party that threaten Erdogan&rsquo;s dreams of&nbsp;<a href="https://www.theguardian.com/world/video/2016/jul/19/erdogans-crackdown-hes-becoming-a-dictator-video" target="_blank">totalitarianism</a>.</strong> We also know ISIS has not claimed responsibility for the attack, nor has Erdogan provided any evidence they were responsible, except to reiterate their alleged responsibility <a href="http://edition.cnn.com/2016/08/20/asia/turkey-wedding-explosion/">over</a> and <a href="http://edition.cnn.com/2016/08/21/asia/turkey-wedding-explosion/" target="_blank">over</a>.</p> <p>Don&rsquo;t be surprised, therefore, if this attack is used as a further excuse to expand military operations against ISIS or some other group that Erdogan considers terrorists - or as a further move to <a href="http://www.timesofisrael.com/turkey-strips-immunity-from-lawmakers-as-erdogan-targets-opposition/" target="_blank">target</a> the Kurdish movement in&nbsp;Turkey and Syria. <em><u><strong>Oh wait, <a href="http://undergroundreporter.org/syria-wondering-turkey-invaded-country-without-permission/" target="_blank">that literally just happened</a>.</strong></u></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="261" height="149" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160825_erdogan.jpg?1472140187" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/did-turkish-president-erdogan-just-use-false-flag-justify-invading-syria#comments Totalitarianism Turkey Thu, 25 Aug 2016 18:20:00 +0000 Tyler Durden 570594 at http://www.zerohedge.com SoRoS... http://www.zerohedge.com/news/2016-08-25/soros <p><a href="https://www.flickr.com/photos/expd/28593978473/in/dateposted-public/" title="SOROS"><img src="https://c2.staticflickr.com/9/8155/28593978473_def3328bd7_b.jpg" alt="SOROS" width="686" height="1024" style="display: block; margin-left: auto; margin-right: auto;" /></a></p> <script src="//embedr.flickr.com/assets/client-code.js"></script> http://www.zerohedge.com/news/2016-08-25/soros#comments Thu, 25 Aug 2016 18:18:48 +0000 williambanzai7 570611 at http://www.zerohedge.com US Destroyer Fired Warning Shots At "Harassing" Iranian Fast-Attack Ship http://www.zerohedge.com/news/2016-08-25/us-destroyer-fired-warning-shots-harassing-iranian-vessels <p>Yesterday, <a href="http://www.zerohedge.com/news/2016-08-24/four-iran-ships-carried-out-high-speed-intercept-us-destroyer">we reported </a>that four Iranian ships carried out a "high speed intercept" of a US destroyer, the USS Nitze, in the Strait of Hormuz, an incident that the official dubbed "unsafe and unprofessional", cited by Reuters. The four vessels belonging to the Islamic Revolutionary Guard Corps "harassed" a U.S. destroyer on Tuesday by carrying out a "high speed intercept" in the vicinity of the Strait of Hormuz, a U.S. Defense official said on Wednesday. </p> <p>Moments ago, CNN reported that in a separate incident, A US Navy ship fired three warning shots after a "harassing" Iranian fast-attack craft approached and circled two U.S. Navy ships and a Kuwaiti vessel in the northern Gulf on Wednesday.&nbsp; It said the U.S. ship fired the shots into the water after the Iranian ship did not leave after a brief radio conversation, according to U.S. officials. </p> <p>The Iranian ship reportedly circled the U.S. ships, coming within 200 yards of the vessels, and would not leave the area. The U.S. Navy ships then fired several warning flares and attempted to make radio contact with the Iranian ship. After a brief radio exchange, the Iranians refused to leave, CNN reported, forcing the U.S. Navy ships to follow defensive maritime procedures and fire three warning shots at the Iranian vessel. </p> <p>This is the second incident in two days: as noted above, the United States on Wednesday had reported another incident in which it said Iranian vessels harassed a U.S. warship near the Strait of Hormuz on Tuesday.</p> <p>CNN also provided more details on initial incident, reporting that according to a US official two of the Iranian vessels slowed and turned away only after coming within 300 yards of the US guided-missile destroyer "as it transited international waters near the Strait of Hormuz, and only after the destroyer had sent multiple visual and audio warnings."</p> <p><em><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/nitze_0.jpg" width="500" height="335" /><br />USS Nitze</em></p> <p>The Iranian vessels moved at high speed toward the Nitze, which was operating in accordance with international law in international waters and ignored maritime "rules of the road" as set out in the 1972 Convention on the International Regulations for Preventing Collisions at Sea. According to the Navy official, the IRGC vessels ignored multiple warnings, creating a dangerous, harassing environment that could have pushed the Nitze to take defensive measures, escalating the situation.</p> <p>The four IRGC vessels approached at high speed. After identifying them, the Nitze tried 12 times to make contact by radio without receiving a response, according to the Navy official. As two of the Iranian vessels continued to barrel toward the Nitze at high speed, the destroyer used an internationally recognized maritime danger signal three times.</p> <p>That signal -- five short blasts of the ship's whistle -- is used when another vessel's intentions are not understood or its indicated course is dangerous. At the same time, the Nitze also used visual warnings, firing 10 flares in the direction of the approaching vessels. Again, the destroyer got no response, the official said.</p> <p>Meanwhile, that is not how Iran saw the events, with its defense minister saying on Thursday that his country would confront any foreign vessel that enters its territorial waters.</p> <p>Hossein Dehghan did not comment directly on Tuesday’s affair. Though he insinuated that the incident occurred inside Iranian territory, US officials have stated it took place in international waters. </p> <p>“Naturally these boats constantly monitor the developments and foreign vessels’ movements and naturally this happens in the waters of our own country. <strong>If any foreign vessel enters our waters, we will give them a warning and if it is an act of aggression, we will confront them,” </strong>he said.</p> <p>Apparently, even or maybe especially if the ships belong to the one nation that recently paid Iran hundreds of millions in ransom money to fund a hostage release.</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="1400" height="937" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/nitze.jpg?1472148296" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/us-destroyer-fired-warning-shots-harassing-iranian-vessels#comments Iran Reuters Thu, 25 Aug 2016 18:07:37 +0000 Tyler Durden 570609 at http://www.zerohedge.com Stocks Slump, Oil Slides To $46 Handle After Saudis Say No "Significant Intervention Necessary" http://www.zerohedge.com/news/2016-08-25/oil-slides-46-handle-after-saudi-statement <p>Having short-squeezed crude oil prices higher on the back of a hope-filled statement, the Saudi energy minister just dropped another tape-bomb, warning that <em><strong>&quot;no discussions of substance&quot; have taken place on OPEC production levels,</strong></em> adding that he<em><strong> &quot;does not believe any significant intervention in market is necessary.&quot;</strong></em></p> <ul> <li><strong>RTRS: SAUDI ENERGY MINISTER AL-FALIH SAYS NO &#39;DISCUSSIONS OF SUBSTANCE&#39; YET ON OPEC PRODUCTION LEVELS </strong></li> <li><strong>SAUDI ENERGY MINISTER AL-FALIH SAID DOES NOT BELIEVE ANY SIGNIFICANT INTERVENTION IN MARKET NECESSARY</strong></li> <li><strong>SAUDI ENERGY MINISTER AL-FALIH SAID DEMAND IS &#39;PICKING UP NICELY&#39; AROUND THE WORLD - RTRS INTERVIEW</strong></li> </ul> <p>And the market&#39;s reaction so far... (the earlier bounce was on Iran comments)</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160825_oil1.jpg"><img height="546" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160825_oil1_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>Of course, not wanting to show his hand fully, he added:</p> <ul> <li><strong>*AN OIL OUTPUT FREEZE WOULD BE POSITIVE IF IT HAPPENS: AL-FALIH(no shit!)</strong></li> <li><strong>*`NOTHING HAS BEEN DECIDED&#39; ON OIL OUTPUT: AL-FALIH</strong></li> <li><strong>*A FREEZE WOULD SIGNAL THAT MARKET IS BALANCED: AL-FALIH</strong></li> </ul> <p><u><strong>Does this look balanced?</strong></u></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/19/20160824_oilinv.jpg"><img height="314" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/19/20160824_oilinv_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>As a gentle reminder:</p> <div> <div id=":1un.co"> <div id=":1ut.ma" title="August 25, 2016 at 10:39:47 AM UTC-7"> <ul> <li><strong><span dir="ltr" id=":1ut.co">OIL AT RISK OF `WASH-OUT&#39; IF OPEC DOESN&#39;T FREEZE: CITI&#39;S MORSE</span></strong></li> </ul> </div> </div> </div> <p>And it seems stocks are catching on..</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160825_oil2.jpg"><img height="377" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160825_oil2_0.jpg" width="600" /></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="1345" height="845" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160825_oil2.jpg?1472146981" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/oil-slides-46-handle-after-saudi-statement#comments Crude Crude Oil Iran OPEC Thu, 25 Aug 2016 17:43:26 +0000 Tyler Durden 570606 at http://www.zerohedge.com The Lack Of EpiPen Competitors Is The FDA's Fault http://www.zerohedge.com/news/2016-08-25/lack-epipen-competitors-fdas-fault <p><a href="https://mises.org/blog/lack-epipen-competitors-fdas-fault"><em>Submitted by Jonathan Newman via The Mises Institute,</em></a></p> <p><a href="http://www.nytimes.com/2016/08/24/upshot/the-epipen-a-case-study-in-health-care-system-dysfunction.html" target="_blank">There&rsquo;s a new bout of outrage over an expensive medicine or medical treatment.</a> <strong>While the good in question changes each time, the blame always seems to fall on greedy corporations who just aren&rsquo;t regulated enough</strong>. Free markets and capitalism are the scapegoat, even when nothing remotely resembling unhampered markets in health care is in place in the United States.</p> <p><strong>This time, it&rsquo;s the EpiPen</strong>, a device that easily and safely injects epinephrine to quickly open up airways for people undergoing severe anaphylaxis because of an extreme allergy. It has saved the lives of countless people who are allergic to bee stings, certain foods, or other drugs because it can be administered on the spot by somebody without any medical training.</p> <p>EpiPen is sold by Mylan, and the price for a pack of two has increased from about $100 in 2007 to over $600 as of May 2016. <strong>Mylan has tried to quell the storm by pointing out that many of their customers pay nothing for the drug because of insurance. Their deflection has been unsuccessful.</strong></p> <p><strong>The economist looks for competitors in cases like this.</strong> A firm cannot just willy-nilly raise their prices without a competing firm leaping in to give consumers what they want at a lower price. <strong>As it turns out, Mylan has a great friend who keeps would-be competitors out of the market, or at least makes it so difficult for them that they eventually go out of business. That friend is the FDA.</strong></p> <p><u><strong>With the FDA, patents, and cozy insurance relationships, Mylan has been able to steadily increase the price of EpiPens without significant market repercussions.</strong></u> Though, the current backlash may push many patients and doctors to look for alternatives. The only problem is that alternatives are few and far between because of government interventions.</p> <p><strong>Epinephrine is extremely cheap&mdash;just a few cents per dose.</strong> The complications come from producing the easy auto-injecting devices. Mylan &ldquo;<a href="https://www.google.com/patents/US7794432" target="_blank">owns</a>&rdquo; their auto-injector device design, so competitors must find work-arounds in their devices to deliver the epinephrine into the patient&rsquo;s body. <strong>This task, coupled with the tangled mess of FDA red tape, has proven to be difficult for would-be EpiPen competitors.</strong> It&rsquo;s like expecting somebody to come up with a new way to play baseball without bases, balls, gloves, or bats, but still getting the game approved by the MLB as a baseball game substitute.</p> <p><em>A French pharmaceutical company offered an electronic device that actually talks people through the steps of administering the drug, but <a href="http://www.fda.gov/Safety/Recalls/ucm469980.htm" target="_blank">it was recalled</a> because of concerns about it delivering the required dose. Just this year, Teva Pharmaceutical&rsquo;s attempt at bringing a generic epinephrine injector to market in the US was <a href="http://www.fiercepharma.com/sales-and-marketing/fda-swats-down-teva-s-epipen-copy-putting-mylan-cruise-control" target="_blank">blocked by the FDA</a>. Adrenaclick and Twinject were unable to get insurance companies on board and so <a href="http://www.twinject.com/" target="_blank">discontinued</a> their injectors in 2012.</em></p> <p><em>Adrenaclick has since come back, but it is still not covered by many insurance plans, and the <a href="http://www.pharmacytimes.com/p2p/p2pepinephrine-0910" target="_blank">FDA has made it illegal</a> for pharmacies to substitute Adrenaclick as a generic alternative to EpiPen. Another company tried to sidestep the whole auto-injector patent barrier by offering prefilled syringes, <a href="http://www.fiercepharma.com/marketing/still-no-epipen-challenge-sight-for-mylan-as-another-competitor-hits-a-snag" target="_blank">but the FDA has stalled them, too</a>.</em></p> <p><strong>Mylan has been repeatedly protected from competition, and it has repeatedly (and predictably) increased the price of EpiPens in response</strong>. Allowing all of these companies to compete in producing epinephrine auto-injectors would be the best course for all of the many patients who want a cheaper solution for severe allergic reactions.</p> <p>One thing is for sure: <strong>capitalism is not to blame.</strong> Government regulations have choked this market and many others. <strong>What we need is a big dose of freedom.</strong></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="234" height="153" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160825_epi.jpg?1472144857" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/lack-epipen-competitors-fdas-fault#comments BATS Insurance Companies Mises Institute The Economist Thu, 25 Aug 2016 17:40:00 +0000 Tyler Durden 570602 at http://www.zerohedge.com Hillary Claims She "Kept Americans Safe" As Secretary, Was "Not Influenced By Any Outside Forces" http://www.zerohedge.com/news/2016-08-25/thursday-humor-hillary-kept-americans-safe-not-influenced-any-outside-forces-while-s <p>Last night Hillary was pressed by CNN&#39;s Anderson Cooper on potential conflicts of interest created by the Clinton Foundation during her tenure as Secretary of State.&nbsp; As we pointed out in a recent post (see &quot;<a href="http://www.zerohedge.com/news/2016-08-23/over-half-hillarys-private-meetings-secretary-were-donors-who-paid-156-million">Over Half Of Hillary&#39;s Private Meetings As Secretary Were With Donors Who Paid $156 Million</a>&quot;), <strong>at least 85 of 154 people from private interests who met or spoke to Clinton while she led the State Department, donated to her family charity.</strong>&nbsp; Moreover, donations by those 85 private interests were found to have donated as much as $156 million in aggregate to the Clinton Foundation.</p> <p>Meanwhile, Trump has grown increasingly critical of the Clinton Foundation&#39;s work in recent days calling for an <strong>&quot;expedited investigation by a special prosecutor.&quot;</strong>&nbsp; Per the <a href="https://www.washingtonpost.com/news/post-politics/wp/2016/08/22/trump-clinton-foundation-should-shut-down-immediately-and-return-some-money/">Washington Post</a>, earlier this week Trump referred to the Clinton Foundation as a &quot;corrupt enterprise&quot; and said that it should &quot;shut down immediately.&quot;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&quot;The Clintons have spent decades as insiders lining their own pockets and taking care of donors instead of the American people.&nbsp; <strong>It is now clear that the Clinton Foundation is the most corrupt enterprise in political history.</strong> What they were doing during Crooked Hillary&rsquo;s time as Secretary of State was wrong then, and it is wrong now. <strong>It must be shut down immediately.&rdquo;</strong></p> </blockquote> <p>Clinton disputed Trump&#39;s claims as &quot;ridiculous&quot; during her interview with CNN saying that her work as Secretary of State was not influenced by &quot;outside forces.&quot;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;<strong>What Trump has said is ridiculous.</strong> My <strong>work as secretary of state was not influenced by any outside forces.</strong> I made policies based on what I thought was right.&quot;</p></blockquote> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;What we did when I was secretary of state, as I said, went above and beyond anything that was required, anything that any charitable organization has to do.&rdquo;</p> </blockquote> <p>The Clinton&#39;s exacerbated the controversy when the campaign recently announced they would restructure leadership roles at the Clinton Foundation in the event Hillary was elected President.&nbsp; This restructuring, including removing Bill from the Foundation board, has led many to question why the Foundation was not deemed to be a conflict while Hillary served as Secretary of State why implicitly agreeing that it would be a conflict during a Hillary Presidency.&nbsp;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;Obviously, If I am president, there will be <strong>some unique circumstances and that&rsquo;s why the foundation has laid out additional, unprecedented steps that it will take if I am elected.&quot;</strong></p> </blockquote> <p>When pressed on whether those &quot;unique circumstances&quot; existed during her tenure as Secretary of State Clinton said there&#39;s &quot;a lot of smoke&quot; but &quot;no fire.&quot;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;No, no. Look, Anderson, <strong>I know there&rsquo;s a lot of smoke and there&rsquo;s no fire.</strong>&rdquo;</p> </blockquote> <p>Given how difficult this interview was for Hillary to navigate (and with a &quot;friendly&quot; network, no less), we&#39;re not surprised that she has elected to skip press conferences for the past 260 days.&nbsp;</p> <p>&nbsp;</p> <p><iframe frameborder="0" height="338" src="https://www.youtube.com/embed/f5AGPQ9TblM" width="600"></iframe></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="1280" height="720" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/hillary-shrug_1.jpg?1472135480" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/thursday-humor-hillary-kept-americans-safe-not-influenced-any-outside-forces-while-s#comments Thu, 25 Aug 2016 17:20:00 +0000 Tyler Durden 570583 at http://www.zerohedge.com Rate Hike Jitters Return In Poor, Tailing 7Y Treasury Auction http://www.zerohedge.com/news/2016-08-25/rate-hike-jitters-return-poor-tailing-7y-treasury-auction <p>And just like that the rate market's perception has shifted. Following two stellar auctions earlier this week, namely a blockbuster auction of 2Y and 5Y bonds, which saw such strong demand we concluded that nobody appeared to be concerned about tomorrow's Yellen testimony at least in the primary bond market. That, however changed moments ago when the Treasury sold $28 billion "belly", 7Y bonds, at a yield of 1.423%, tailing the When Issued by 1.3 bps, the first tail in this tenor since February. </p> <p>The internals were comparably ugly, with the Bid to Cover sliding from 2.514 to 2.383, below the 12MMA of 2.51, as Indirects failed to make a strong appearance, taking down only 58.33%, the lowest since March, leaving Dealers holding 31.3% of the take down, the most since February. Directs ended up with 10.39% of the auction. </p> <p>Why the change? Some have pointed out the unexpected Hilsenrath piece in the WSJ earlier, which may be a harbinger of something big to come from Yellen, others are saying it is mostly curve flows, although the sudden shift in sentiment from the previous two auctions is at least on the surface, notable. </p> <p>So will the skeptical 7Y be right, and will Yellen blow out the curve tomorrow if she delivers a far more hawkish statement than 85% on Wall Street expect? The answer will be revealed tomorrow.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/7%20year%20aug%202016.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/7%20year%20aug%202016_0.jpg" width="500" height="293" /></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="2062" height="1208" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/7%20year%20aug%202016.jpg?1472145142" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-25/rate-hike-jitters-return-poor-tailing-7y-treasury-auction#comments Bond Testimony Thu, 25 Aug 2016 17:12:32 +0000 Tyler Durden 570604 at http://www.zerohedge.com