http://www.zerohedge.com/fullrss2.xml/The%20World%27s%20Greatest%20Money%20Trick%2C%20Gold%20Myths%20Exposed%2C%20Part%20I%20 en GE-Dip-Buying-Panic Sends Dow To 'Most Overbought' In 62 Years, Yield Curve Collapse Continues http://www.zerohedge.com/news/2017-10-20/ge-dip-buying-panic-sends-dow-most-overbought-62-years-yield-curve-collapse-continue <p>Always...</p> <p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/WlBiLNN1NhQ" width="560"></iframe></p> <p>&nbsp;</p> <p>As Bloomberg summarizes, <strong>the dollar rose, Treasuries sank and all three broad stock indexes are heading for a record close on bets a budget compromise will bring Washington closer to agreeing on Trump&rsquo;s promise of tax reform</strong>. The dollar touched a three-month high and 10-year Treasury yields approached 2.4% while the Canadian dollar tumbled after inflation and retail sales missed estimates. Some clarity on a budget resolution, a good quarter of earnings and the anticipation of an announcement of the next Fed chair has led to market confidence. <strong><em>One stock clearly bucked the earnings trend; GE posted results before the bell, missing analysts&rsquo; estimates significantly and slashing its profit forecast. The stock erased losses after falling 7% in premarket trading.</em></strong></p> <p><strong><em>So - GE did this...</em></strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD12.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD12_0.png" style="width: 600px; height: 351px;" /></a></p> <p><strong><em>GE now 1% above yesterday&#39;s close after abysmal earnings, cutting guidance by 30% and &ldquo;horrible cash flow&rdquo;</em></strong></p> <p>And The Dow did this...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD1.png"><img height="315" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD1_0.png" width="600" /></a></p> <p>&nbsp;</p> <p><u><strong>Which pushes it to the most overbought (based on RSI) since July 1955...</strong></u></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD2.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD2_0.png" style="width: 600px; height: 305px;" /></a></p> <p>&nbsp;</p> <p>The Dow has not been near &#39;oversold&#39; since Jan 2015...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD3.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD3_0.png" style="width: 600px; height: 302px;" /></a></p> <p>&nbsp;</p> <p>Another perfect week (5 up days) for the S&amp;P 500 <strong><em>(making 4 in 2017, compared to 1 in 2016, 2 in &#39;14, 2 in &#39;13, 2 in &#39;12, and 2 in &#39;11)</em></strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD17.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD17_0.png" style="width: 600px; height: 422px;" /></a></p> <p>&nbsp;</p> <p>VIX ended back below 10 (after briefly spiking above 11.6 yesterday)...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD16.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD16_0.png" style="width: 600px; height: 359px;" /></a></p> <p>&nbsp;</p> <p>and then this happened right at the close...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD18.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD18_0.png" style="width: 600px; height: 422px;" /></a></p> <p>&nbsp;</p> <p>Homebuilders soared today... due to fun-durr-mentals...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD4.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD4_0.png" style="width: 600px; height: 314px;" /></a></p> <p>&nbsp;</p> <p>Bank stocks underperformed today - but still have a long way top go to catch down to the crash in the yield curve..</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD13.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD13_0.png" style="width: 600px; height: 317px;" /></a></p> <p>&nbsp;</p> <p>Uglyish week for FANG stocks and AAPL ended red...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD11.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD11_0.png" style="width: 600px; height: 312px;" /></a></p> <p>&nbsp;</p> <p>TSLA Tanked Today...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD19.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD19_0.png" style="width: 600px; height: 422px;" /></a></p> <p>&nbsp;</p> <p>Following last night&#39;s budget vote, tax-hope picked up again from recent lows...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD5.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD5_0.png" style="width: 600px; height: 315px;" /></a></p> <p>&nbsp;</p> <p>Yields are higher on the day (and week) with the short-end continuing to underperform...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD9.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD9_0.png" style="width: 600px; height: 319px;" /></a></p> <p>&nbsp;</p> <p>The yield curve continued to collapse this week - lowest weekly close for 5s30s since Nov 2007</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD8.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD8_0.png" style="width: 600px; height: 315px;" /></a></p> <p>&nbsp;</p> <p>Copper/Gold is at its highest in 3 years suggesting bond yields have a lot further to rise...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD15.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD15_0.png" style="width: 600px; height: 315px;" /></a></p> <p>&nbsp;</p> <p>The Dollar Index soared today after last night&#39;s budget vote - <strong>this is the best day for the dollar in 9 months... </strong>after bouncing perfectly off the unchanged for the week level...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD6.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD6_0.png" style="width: 600px; height: 312px;" /></a></p> <p><strong><em>The Dollar is up 5 of the 6 weeks - highest weekly close in 3 months</em></strong></p> <p>&nbsp;</p> <p>Yen and Loonie (retail sales weakness) were the biggest losers this week sending the green back higher...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD7.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD7_0.png" style="width: 600px; height: 316px;" /></a></p> <p>&nbsp;</p> <p>Dollar strength weighed on precious metals with copper best on the week and WTI managing to limp into the green for the week today...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD14.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/20/20171020_EOD14_0.png" style="width: 600px; height: 317px;" /></a></p> <p>&nbsp;</p> <p>Finally, Bitcoin soared today (on Zimbabwe panic) above $6000 for the first time ever...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_btc3.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_btc3_0.png" style="width: 600px; height: 276px;" /></a></p> <p>&nbsp;</p> <p>Now bigger than Goldman Sachs...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_btc2.png"><img height="318" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_btc2_0.png" width="600" /></a></p> <p>&nbsp;</p> <p>So who is right?</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD10.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_EOD10_0.png" style="width: 600px; height: 319px;" /></a></p> <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="600" height="83" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171020_EOD.png?1508526800" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/ge-dip-buying-panic-sends-dow-most-overbought-62-years-yield-curve-collapse-continue#comments Bitcoin Bond Business Canadian Dollar Copper Dow 30 Economy Finance Fixed income General Electric goldman sachs Goldman Sachs Money Precious Metals S&P 500 United States dollar US Federal Reserve Yen Yield Yield Curve Yield curve Fri, 20 Oct 2017 20:01:40 +0000 Tyler Durden 605721 at http://www.zerohedge.com Marc Faber Responds To Racism Allegations http://www.zerohedge.com/news/2017-10-20/marc-faber-responds-racism-allegations <p>Having been forced off the boards of Sprott, NovaGold, and Ivanhoe mines and excommunicated from mainstream business media <a href="http://www.zerohedge.com/news/2017-10-17/sprott-demand-marc-fabers-resignation-after-racist-diatribe">following his comments earlier in the week</a>, Gloom, Boom, &amp; Doom Report writer Marc Faber responds to his racism allegations...</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&quot;I have been labeled by the mainstream media as a racist - I don&#39;t think this corresponds at all with reality.</strong></p> <p>&nbsp;</p> <p>I wrote a report about capitalism and socialism and about private property rights, and I also wrote about the <strong>tendency nowadays to want to rewrite history.</strong></p> <p>&nbsp;</p> <p>In the US they are trying to tear down statues of people who had a different view from other people at the time... they also tried to tear down statues of Columbus..</p> <p>&nbsp;</p> <p>I think that when you have civilization,<strong> when you have culture, you should remember your past.</strong></p> <p>&nbsp;</p> <p><strong>Our past - the white man - has certainly not been glorious,</strong> it&#39;s been very cruel with the periods of imperialism and colonialism being very cruel.</p> <p>&nbsp;</p> <p>But the fact is that the <strong>white man and the Europeans brought a lot of skills and knowledge and a work ethic that built a very prosperous society</strong>... until very recently.</p> <p>&nbsp;</p> <p><strong>I think that to try to deny the fact that the western white man made America great is just not right and for that reason I was attacked very badly.&quot;</strong></p> </blockquote> <p>The conversation then continues to discuss cultural clashes, skin color, religion, confederate statues, African repression, capitalism, gold, bitcoin, Hillary Clinton, the swamp, President Trump, and America&#39;s military-industrial complex running foreign policy.</p> <p><iframe frameborder="0" height="315" src="https://www.youtube.com/embed/iObpvRXKO_g" width="560"></iframe></p> <p>We suspect Faber&#39;s reponse will do him no favors in this age of ever-increasing virtue-signaling, but he has at least clarified his perspective.</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="312" height="189" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20171020_faber.png?1508521632" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/marc-faber-responds-racism-allegations#comments America's military Bitcoin Bitcoin Capitalism Cryptocurrencies Economy Finance Ivanhoe Marc Faber Marc Faber Money Reality Social Issues Fri, 20 Oct 2017 19:45:00 +0000 Tyler Durden 605714 at http://www.zerohedge.com Emails Reveal Bill Clinton Met With Vladimir Putin Just Before Uranium One Deal http://www.zerohedge.com/news/2017-10-20/emails-reveal-bill-clinton-sought-meetings-key-russian-nuclear-officials-just-uraniu <p>If President Trump or anyone even remotely close to his presidency, including his best friend from 2nd grade that he hadn't seen in 40 years, sought to meet with key Russian nuclear officials, in Moscow, just months before the federal government approved a very controversial deal handing Vladimir Putin 20% of U.S. uranium reserves, despite an ongoing investigation into Russian fraud, bribery, extortion and money laundering, it would be the only story played on a 24 x 7 loop on CNN and MSNBC.</p> <p>Ironically, that is exactly what new emails dug up by <a href="http://thehill.com/policy/national-security/356323-bill-clinton-sought-states-permission-to-meet-with-russian-nuclear">The Hill</a> show that Bill Clinton did in June 2010, just months before the Uranium One deal was approved by a committee on which his wife, then Secretary of State Hillary Clinton, sat.&nbsp; Oh, and did we mention that Bill's Clinton Foundation just happened to collect millions of dollars in <span style="text-decoration: line-through;"><span style="color: #ff0000;">bribes </span></span>donations from Russian sources and Uranium One shareholders shortly after his Moscow meetings?</p> <p>As you will recall, the Committee on Foreign Investment in the United States (CFIUS), approved the Uranium One transaction in October 2010.&nbsp; According to new emails revealed by The Hill, just months before that approval, Bill Clinton sought permission from the State Department, run by his wife at the time, to meet Arkady Dvorkovich, a top aide to then-Russian President Dmitri Medvedev and one of the highest-ranking government officials to serve on Rosatom’s board of supervisors, the company which was ultimately approved to purchase Uranium One.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>As he prepared to collect a $500,000 payday in Moscow in 2010, Bill Clinton sought clearance from the State Department to meet with a key board director of the Russian nuclear energy firm Rosatom</strong> — which at the time needed the Obama administration’s approval for a controversial uranium deal, government records show.</p> <p>&nbsp;</p> <p><strong>Arkady Dvorkovich, a top aide to then-Russian President Dmitri Medvedev and one of the highest-ranking government officials to serve on Rosatom’s board of supervisors, </strong>was listed on a May 14, 2010, email as one of 15 Russians the former president wanted to meet during a late June 2010 trip, the documents show.</p> <p>&nbsp;</p> <p><strong>“In the context of a possible trip to Russia at the end of June, WJC is being asked to see the business/government folks below. Would State have concerns about WJC seeing any of these folks,”</strong> Clinton Foundation foreign policy adviser Amitabh Desai wrote the State Department on May 14, 2010, using the former president’s initials and forwarding the list of names to former Secretary of State Hillary Clinton’s team.</p> </blockquote> <p>While we apparently still don't know whether Bill Clinton was ultimately approved to hold those meetings, <strong>his team did confirm that he met with Vladimir Putin at his private residence</strong>.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>The documents don’t indicate what decision the State Department finally made. But current and former aides to&nbsp;both&nbsp;Clintons told The Hill&nbsp;on Thursday&nbsp;the request to meet the various Russians came from other people, and the ex-president’s aides and State decided in the end not to hold any of the meetings with the Russians on the list.</p> <p>&nbsp;</p> <p><strong>Bill Clinton instead got together with Vladimir Putin at the Russian leader’s private homestead.</strong></p> </blockquote> <p><img src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/10/20/2017.10.20%20-%20Bill%20Putin_0.JPG" alt="Clinton and Putin" width="500" height="276" /></p> <p>Meanwhile, The Hill revealed yet another facet to the story from a "close associate of Bill Clinton" who says that his trip to Russia may have been as much about helping family members <strong>“grow investments in their business with Russian oligarchs and other businesses,"</strong> businesses in which we're sure Bill and Hillary just happened to have a stake, as it was about trading American uranium reserves for Clinton Foundation donations.<strong><br /></strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>A close associate of Bill Clinton who was directly involved in the Moscow trip and spoke on condition of anonymity, described to The Hill the circumstances surrounding how Bill Clinton landed a $500,000 speaking gig in Russia and then came up with the list of Russians he wanted to meet.</p> <p>&nbsp;</p> <p>The friend said Hillary Clinton had just returned in late March 2010 from an official trip to Moscow where she met with both Putin and Medvedev. The president’s speaker’s bureau had just received an offer from Renaissance Capital to pay the former president $500,000 for a single speech in Russia.</p> <p>&nbsp;</p> <p>Documents show Bill Clinton’s personal lawyer on April 5, 2010, sent a conflict of interest review to the State Department asking for permission to give the speech in late June, and it was approved two days later.</p> <p>&nbsp;</p> <p>The Clinton friend said the former president’s office then began assembling a list of requests to meet with Russian business and government executives whom he could meet on the trip. <strong>One of the goals of the trip was to try to help a Clinton family relative “grow investments in their business with Russian oligarchs and other businesses,” the friend told The Hill.</strong></p> <p>&nbsp;</p> <p><strong>“It was one of the untold stories of the Russia trip. People have focused on Uranium One and the speaking fees, but opening up a business spigot for the family business was one only us insiders knew about,” </strong>the friend said.</p> <p>&nbsp;</p> <p><strong>“We knew of some sort of transactions in which the Clintons received funds and Russia received approvals, and the question has always been how and if those two events are connected,”</strong> he said. <strong>“I think this provides further evidence the two may be connected.”</strong></p> </blockquote> <p>Of course, Hillary contends that this entire story is a "<em>big nothing-burger</em>" and that everyone should promptly return their focus to the $100,000 worth of Facebook ads that destroyed her campaign and the entire American democratic process...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Aides to the ex-president, Hillary Clinton and the Clinton Foundation said Bill Clinton did not have any conversations about Rosatom or the Uranium One deal while in Russia, and that no one connected to the deal was involved in the trip. <strong>A spokesman for Secretary Clinton said Thursday the continued focus on the Uranium One deal smacked of partisan politics aimed at benefiting Donald Trump.</strong></p> <p>&nbsp;</p> <p><strong>“At every turn this storyline has been debunked on the merits. Its roots are with a project shepherded by Steve Bannon, which should tell you all you need to know,” </strong>said Nick Merrill. <strong>“This latest iteration is simply more of the right doing Trump’s bidding for him to distract from his own Russia problems, which are real and a grave threat to our national security.”</strong> Current and former Clinton aides told The Hill that the list of proposed business executives the former president planned to meet raised some sensitivities after Bill Clinton’s speaker bureau got the invite for the lucrative speech.</p> </blockquote> <p>...and we're confident CNN wholeheartedly agrees.</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="541" height="299" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017.10.20%20-%20Bill%20Putin.JPG?1508500886" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/emails-reveal-bill-clinton-sought-meetings-key-russian-nuclear-officials-just-uraniu#comments Bill Clinton Bill's Clinton Foundation Clinton Foundation Clinton Foundation Clinton Foundation–State Department controversy Committee on Foreign Investment Department of State Dmitry Medvedev Donald Trump federal government Government Hillary Clinton Independent politicians Merrill MSNBC national security Obama administration Politics Politics Renaissance Rodham family United States Uranium Uranium One Vladimir Putin Vladimir Putin Fri, 20 Oct 2017 19:31:28 +0000 Tyler Durden 605688 at http://www.zerohedge.com Fired Tesla Workers Discover They Were Replaced With Cheap Temp Labor http://www.zerohedge.com/news/2017-10-20/fired-tesla-workers-say-theyre-being-replaced-cheap-temp-labor-after-noting-hazardou <p>Just last week, amid their Model 3 "production hell," Tesla shocked the auto world with news that they would be <a href="http://www.zerohedge.com/news/2017-10-14/amid-management-exodus-tesla-fires-hundreds-workers">firing hundreds of workers</a>.&nbsp; Of course, firing seasoned production staff is somewhat atypical for a 'growing' company (shrinking cash flow aside) that was already having difficulty meeting their own production schedule.&nbsp; Of course, the irony was apparently 'lost' on Tesla who tried to dismiss the mass firings as "performance-based terminations."&nbsp; Per <a href="https://capitalandmain.com/mass-firings-at-tesla-raise-questions-1018">Capital and Main</a>: </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Tesla announced the firings, which are reportedly still continuing, last week. Though no official number of terminations would be given, estimates range from 400 to 1,200. <strong>The company did not give advance notice under the WARN Act because, it insisted, they were performance-based terminations, not layoffs.</strong> “Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved during the performance period,” said a Tesla spokesperson in an emailed statement. <strong>“As with any company, especially one of over 33,000 employees, performance reviews also occasionally result in employee departures.”</strong></p> </blockquote> <p>As it turns out, we're not the only ones who were surprised by Tesla's mass termination event as laid off workers are now coming forward to say the decision was <strong>nothing more than an attempt to break up unionization efforts at the company's Fremont, CA plant and replace seasoned employees with cheap, temporary contract labor.</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Those are the questions the labor organizing campaign at Tesla is asking, after the company issued a wave of terminations, allegedly linked to performance issues among its 33,000 employees. Several members of the campaign, known as A Fair Future at Tesla, were among those fired, and they all claim to have had excellent performance records. None have been able to obtain the negative reviews that were supposed to be the rationale for their firing.</p> <p>&nbsp;</p> <p>The terminations struck many as strange. Tesla wants to ramp up production of the highly anticipated Model 3, a more affordable electric vehicle. CEO Elon Musk set a goal of 20,000 completed cars per month by this December. But in the third quarter of 2017 Tesla finished just 260. Musk has cited “production bottlenecks” for the poor output. But firing workers and retraining replacements seems a hindrance to, not an improvement on, this goal. Also, Tesla fashions itself a high-growth company, and mass terminations aren’t something high-growth companies do. Furthermore, fired employees claim they never had the kind of review that would explain the terminations. <strong>“I had great performance reviews. I don’t believe I was fired for performance,”</strong> said Daniel Grant, a production associate at the plant for three years. Grant claims he was injured on the job on a Friday, and fired the following Monday. “The company didn’t show me or others our most recent reviews when they fired us.”</p> </blockquote> <p><img src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/2017/10/20/Tesla_0.JPG" alt="Tesla" width="600" height="277" /></p> <p>Other production workers say their performance reviews were stellar but were dismissed after speaking out about "low pay, hazardous working conditions and a culture of intimidation at the Fremont plant."</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Only when you understand Tesla’s labor issues does a more plausible explanation emerge. <strong>For months, Grant and other Tesla workers have spoken out about low pay, hazardous working conditions and a culture of intimidation at the Fremont plant.</strong> They have sought to affiliate with the United Auto Workers to win a voice on the job. While Tesla said that most of the exits were in administrative and sales jobs, at least some of them hit the factory floor. And many of these pro-union workers were among those fired, according to the Fair Future at Tesla campaign. <strong>That includes Grant, who said he wore union T-shirts on “Union Shirt Friday,” addressed safety issues in employee meetings and handed out informational fliers to colleagues.</strong></p> <p>&nbsp;</p> <p>Pro-union workers criticized the Model 3 ramp-up in August, saying that Tesla skipped test runs for the assembly line and predicting the company would likely institute forced overtime to keep on track. Both issues could lead to more injuries, the workers claimed. Grant believes that vocalizing these types of concerns about safety cost him his job.</p> </blockquote> <p>Meanwhile, local advertisements imply that Tesla is seeking contract laborers who will start at much lower hourly rates and not receive health benefits...<strong>you know the benefits that Silicon Valley elites like Elon Musk demand that other companies must provide.</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>But a number of job fair listings spotted throughout the Bay Area suggest that Tesla will be replacing pro-union voices with contract labor. One such listing, through the temp agency Balanced Staffing, touts “hiring on the spot” for “a manufacture [sic] of electric cars in Fremont!!!” There are no auto facilities in that city other than Tesla. The listing says workers will make $18 to $20 an hour doing “repetitive motion” tasks, and that applicants “must be able to work 12 hour shifts.” The site of the job fair, in Modesto, is at least a two-hour drive from Fremont (the listing promises free shuttle service).</p> <p>&nbsp;</p> <p>A similar Balanced Staffing listing on Craigslist for an event in Stockton, also a two-hour drive, again offers $18 an hour and says workers “must be open to any shift.”<strong> The entry-level wage is lower than what terminated workers with three and four years of service were making at the plant. Contracted work from a third party also likely means no benefits, certainly not the stock options offered Tesla employees. </strong>In addition to lower costs, independent contractors would be far less likely to join organizing campaigns.</p> <p>&nbsp;</p> <p>It certainly appears that Tesla is attempting to increase Model 3 production with a temp labor force, while weeding out longer-tenured employees, at least some of whom were vocal about unionizing the plant.</p> </blockquote> <p>Finally, the irony is that just as Musk is firing employees in the U.S., <a href="https://qz.com/1107802/tesla-raises-wages-30-in-germany-soon-after-firing-its-us-workers/">he offered 30%</a> raises to workers in Germany...</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Soon after Tesla fired hundreds of workers at its plant in Fremont, California, it managed to settle a problem with its German staff that could have been far, far worse. Things got off to a bad start when the boss of Grohmann resigned shortly after the takeover, and workers threatened to strike. They complained that once Tesla was their sole client—they used to supply a variety of automakers—they would face job insecurity. On top of that, they said they were getting paid 30% less than union rates.</p> <p>&nbsp;</p> <p><strong>Tesla will reportedly ramp up wages by about 30% and safeguard jobs till 2022. </strong>The previous offer of $10,000 in Tesla stock has also reportedly been accepted. “We have developed our own remuneration structure in very pragmatic discussions,” Uwe Herzig, the head of the workers’ council at Tesla Grohmann Automation, told Die Welt (link in German).</p> </blockquote> <p>...a tricky situation which we anticipate might just draw the attention of a frequent tweet stormer in Washington D.C. who loves to speak out about unfair treatment of American workers...</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="616" height="360" alt="" src="http://www.zerohedge.com/sites/default/files/images/user230519/imageroot/Elon%20Musk_8.JPG?1508518413" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/fired-tesla-workers-say-theyre-being-replaced-cheap-temp-labor-after-noting-hazardou#comments Business Elon Musk Germany Hyperloop Labor Nationality Nikola Tesla None Termination of employment Tesla Tesla Model S Transhumanists Transport Washington D.C. White South African people Wireless energy transfer Fri, 20 Oct 2017 19:30:00 +0000 Tyler Durden 605715 at http://www.zerohedge.com US Spent A Record $4 Trillion In Fiscal 2017, Pushing Deficit To $666 Billion http://www.zerohedge.com/news/2017-10-20/us-spent-record-4-trillion-fiscal-2017-pushing-deficit-666-billion <p>One year ago, the CBO forecasted that the&nbsp; Fiscal 2017 US deficit (for the year ended September 30), would be in the mid-$500 billion range. It was not meant to be, however, and on Friday the <a href="https://www.fiscal.treasury.gov/fsreports/rpt/mthTreasStmt/mts0917.pdf">Treasury reported </a>that with outlays of $341 billion in the last month of the fiscal year, offset by $349 billion in receipts, the full year deficit grew to a nice, round and very memorable $666 billion in fiscal 2017, up $80 billion or 14% from fiscal 2016. The government ran an $8 billion surplus in September, much smaller than the $33 billion surplus in September 2016. <strong>Receipts fell 2% while outlays grew 5% last month compared with the same period a year earlier</strong>.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/2017-10-20%20%281%29.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/2017-10-20%20%281%29_0.png" width="500" height="250" /></a></p> <p>For the full year, federal tax receipts reached a record high $3.315 trillion, thanks to slightly faster growth, according to a Treasury official quoted by the WSJ. But government outlays also hit a record high last year at nearly $4 trillion ($3.981 trillion to be precise), 3% higher than they were in the previous fiscal year, thanks to increased spending on Social Security, Medicare and Medicaid, as well as higher interest payments on the public debt. And that's with interest rates that were near all time lows. We can't wait until the $20+ trillion in Federal debt starts really hitting the bottom budget line as the Fed starts pushing rates higher. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/2017%20deficit.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/2017%20deficit_0.jpg" width="500" height="451" /></a></p> <p>As a percentage of gross domestic product, the deficit totaled 3.5%, up from 3.2% in fiscal year 2016. The good news is that after contracting for 4 consecutive months in early 2017, federal government receipts have once again started grown on a Y/Y basis.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/govt%20receipts%20sept%202017.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/govt%20receipts%20sept%202017_0.jpg" width="500" height="315" /></a></p> <p>“Today’s budget results underscore the importance of achieving robust and sustained economic growth,” Treasury Secretary Steven Mnuchin said in a statement accompanying the report. “Through a combination of tax reform and regulatory relief, this country can return to higher levels of GDP growth, helping to erase our fiscal deficit.” It remains unclear how incurring another $1.5 trillion in debt in a time of rising rates to provide debt relief mostly to the wealthy is synonymous with erasing the fiscal deficit. </p> <p>A more sober voice of reason, that of Mick Mulvaney, the White House budget director, said the figures “should serve as a smoke alarm for Washington” and a reminder to “get our fiscal hour in order.”</p> <p>Meanwhile, deficit hawks, including some in Congress, warned that a GOP plan to rewrite the tax code could make the country’s fiscal situation worse if it adds to the deficit, which it will: the Senate approved a budget resolution Thursday that would allow Congress to pass a tax cut that lowers federal revenues by $1.5 trillion over the next 10 years.</p> <p>Declining government revenues and long-term costs associated with an aging population, including higher Social Security and Medicare spending, <strong>are expected to continue pushing up deficits over the coming decades</strong>.</p> <p>As a reminder, this is what the CBO - and JPM - forecast the future trajectory of US debt looks like. It also explains why, at this point, the Fed will stop at nothing to cause hyperinflation.</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/05/12/jpm%20debt%20cbo%20forecast.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/05/12/jpm%20debt%20cbo%20forecast_0.jpg" width="500" height="315" /></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="763" height="481" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/jpm%20debt%20cbo%20forecast_0.jpg?1508526925" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/us-spent-record-4-trillion-fiscal-2017-pushing-deficit-666-billion#comments Business Congress Economy Economy of the United States Federal Tax Gross Domestic Product Hyperinflation Medicare Medicare National debt of the United States Political debates about the United States federal budget Republican Party Senate United States United States federal budget United States fiscal cliff US Federal Reserve White House White House Fri, 20 Oct 2017 19:15:35 +0000 Tyler Durden 605720 at http://www.zerohedge.com Latest Fear Mongering About Self Sufficiency: Salmonella in Backyard Chickens http://www.zerohedge.com/news/2017-10-20/latest-fear-mongering-about-self-sufficiency-salmonella-backyard-chickens <p><a href="http://www.thedailybell.com/news-analysis/latest-fear-mongering-about-self-sufficiency-salmonella-in-backyard-chickens/">Via The Daily Bell</a></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Two years ago I moved to Florida from Massachusetts. When people found out I was moving, they would often immediately remark, “Get ready for the brutal heat and humidity!”</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">It was their first instinct to bring up any possible negative about moving to a much more pleasant climate.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">About a year later, I posted pictures of vegetables we had grown, and chickens we keep. I also mentioned the name we call our mini-farm: Prickly Pear Plantation.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Was the first comment from my progressive liberal friend all about how great it is that we aren’t using any pesticides? Was it about how happy our free-range chickens look, or about how great it is that we aren’t supporting Monsanto? Did he remark on the fact that basically everything we build has some materials&nbsp;<a href="http://www.thedailybell.com/news-analysis/do-we-need-trendy-terms-to-encourage-recycling/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">recycled</a>&nbsp;from old projects and equipment on the property?</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">No. He said we shouldn’t call our mini-farm a plantation because it is apparently politically incorrect.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">I’ve also had fat people tell me that running is bad for my knees. There actually are some health risks related to too much exercise. And there’s ten times more related to not enough exercise.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">It isn’t just peers that seem so eager to bring attention to the negatives in any positive situation.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif; text-align: center;"><span style="box-sizing: border-box; font-weight: bold;">The media does it too.</span></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">I just read a report about how the trend of raising backyard poultry is contributing to a rise in salmonella infections. Fox, the New York Times, NPR and other popular outlets have reported the same thing within the last few months. CBS actually titled their article: “Backyard Chicken Trend Turns Deadly.”</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">All the reports are based on a Centers for Disease Control warning about the “outbreak” of salmonella among small-scale&nbsp;chicken keepers.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Now I certainly don’t object to good information about staying healthy while raising livestock. A lot of people who keep chickens on a small scale are new to it.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">But&nbsp;<a href="https://www.statnews.com/2017/10/19/backyard-chicken-disease/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">looking at the numbers</a>&nbsp;of infections, I doubt the salmonella risk is even as great as buying chicken and eggs from the store.</p> <blockquote style="box-sizing: border-box; padding: 10px 20px; margin: 0px 0px 20px; font-size: 17.5px; border-left: 5px solid #eeeeee; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;"><p style="box-sizing: border-box; font-size: 16px; line-height: 24px; padding-bottom: 8px;">Since January, more than 1,100 people have contracted salmonella poisoning from chickens and ducks in 48 states, according to the Centers for Disease Control. Almost 250 were hospitalized and one person died. The toll was four times higher than in 2015.</p> </blockquote> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">If the trend of keeping chickens is growing, it shouldn’t be surprising that the rates of salmonella infection are keeping pace. And while these numbers may seem high at first glance, over one million people countrywide come down with salmonella a year. So only about one-tenth of 1% of cases stem from people keeping chickens at home.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">The general population has a risk of about 1 in 320 of getting salmonella in a given year. That means if there are more than about 320,000 people who keep chickens in their backyards in the USA, they have a lower risk than the general population of contracting salmonella.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">There aren’t very reliable statistics on how many people in the U.S. keep chickens for personal use. But a&nbsp;<a href="https://mikethechickenvet.wordpress.com/2013/06/18/major-us-study-on-backyard-flocks/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">2013 survey estimated</a>&nbsp;.8% of American households keep backyard chickens. That means about one million households keep chickens. Going with the average household of 2.58 people, you could say perhaps 2.5 million people live in a household that keeps backyard chickens.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">If these numbers are even close to accurate–or even off by a factor of five–that means the risk of salmonella is actually&nbsp;<em style="box-sizing: border-box; line-height: 24px; padding-bottom: 8px;">lower</em>&nbsp;for backyard chicken farmers than for the general population!</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Another interesting thing to note is that the distribution of baby chicks is still pretty centralized. But the centralized food industry is one of the biggest problems relating to foodborne illness in the first place. So is the problem keeping chickens in your backyard, or is the problem sourcing those chickens from one of a handful of hatcheries?</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">In that sense, scaring people away from keeping chickens in their backyard is just ushering them into another centralized food industry just as–or more–likely to get them sick. The real solution is keeping chickens as well as sourcing them locally from a farm you can visit.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">So the problem with these kinds of alarmist articles is that they could curb an overall more healthy behavior. They encourage people to do the same old unhealthy thing, instead of pursuing a healthier alternative for fear of a relatively obscure risk.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Keeping chickens might actually reduce the overall chance of getting salmonella from poultry products. But even if it increases the risk, it doesn’t take into account the long-term health benefits of eating homegrown versus storebought food.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">And then there are so many other factors that one alarming statistic does not take into account. Maybe keeping chickens is better for your mental health. Maybe knowing where your eggs come from decreases your stress levels. Perhaps being exposed to livestock inoculates you against more serious diseases.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">(<span style="box-sizing: border-box; font-weight: bold;">An interesting side note:</span>&nbsp;In the late 1700’s, smallpox was a devastating disease. But Dr. Edward Jenner noticed that milkmaids who had previously come down with cowpox were immune to smallpox. The symptoms of cowpox were much milder compared to deadly smallpox. Yet the diseases were similar enough so that having had cowpox acted as an inoculation against smallpox.)</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">The overblown fear of salmonella from backyard chickens probably makes people less healthy overall.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif; text-align: center;"><span style="box-sizing: border-box; font-weight: bold;">Society seems to hate anything that empowers individuals.</span></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Basically, the overall message from society and the media seems to encourage the status quo–even when the status quo is less healthy or riskier.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">I see this attitude even in the comments of The Daily Bell. If I am too optimistic about a trend, technology, or movement, I basically hear,&nbsp;<em style="box-sizing: border-box; line-height: 24px; padding-bottom: 8px;">don’t you know people have always been slaves and always will be!</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">If I talk about&nbsp;<a href="http://www.thedailybell.com/news-analysis/in-support-of-competing-micro-states-or-startup-societies/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">exiting an unjust society</a>&nbsp;its:&nbsp;<em style="box-sizing: border-box; line-height: 24px; padding-bottom: 8px;">oh so you’re just going to run and hide?&nbsp;</em>If I talk about&nbsp;<a href="http://www.thedailybell.com/news-analysis/how-seasteading-might-just-solve-all-the-worlds-problems-book-review/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">standing up to the powers that be</a>&nbsp;its:&nbsp;<em style="box-sizing: border-box; line-height: 24px; padding-bottom: 8px;">wow, you really think you could defeat the machine?&nbsp;</em>If I talk about&nbsp;<a href="http://www.thedailybell.com/news-analysis/how-society-grew-cold-dependence-on-cold-institutions/" style="box-sizing: border-box; background: 0px 0px; color: #0c5b3c;">finding a group of like-minded people</a>&nbsp;to form a voluntary community with its:&nbsp;<em style="box-sizing: border-box; line-height: 24px; padding-bottom: 8px;">what are you some kind of hippie communist?</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Most people don’t want anyone else to change. Misery loves company. People would rather drag others down than build themselves up.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">If one person isn’t into keeping chickens, they get some sort of pleasure hearing about any possible pitfall. Fat people like that runners injure themselves. Liberals care more about the name of my mini-farm than about the positive impact it has. And the people freezing their asses off in Massachusetts just have to make themselves feel better by telling me how miserable I’ll be in the summer.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">But individuals actually do have control over their lives. They can divorce themselves from a centralized and unhealthy food industry. They can make themselves free, happy, and prosperous. They don’t have to live in a place they hate or continue a depressing lifestyle.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">It is a victim mentality that seeks excuses not to make a positive change in one’s own life.&nbsp;<em style="box-sizing: border-box; line-height: 24px; padding-bottom: 8px;">Why bother if the alternative is just as unhealthy. Why try if I will just get beat down by society.</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">And the media definitely doesn’t want people to change. They have a vested interest in making sure there is an army of negatrons to counter every positive utterance. That is how the media protects the status quo. It is how they make sure people don’t step too far out of line.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">It is how they make sure people don’t empower themselves to stop depending on the state and corporate institutions.</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; font-size: 16px; line-height: 24px; padding-bottom: 8px; color: #303030; font-family: Georgia, &quot;Times New Roman&quot;, Times, serif;">Don’t fall for their hype.</p> http://www.zerohedge.com/news/2017-10-20/latest-fear-mongering-about-self-sufficiency-salmonella-backyard-chickens#comments Bacteria Chicken Chickens Countrywide Egg as food Florida Holozoa Livestock Microbiology Monsanto New York Times Poultry farming Salmonella Salmonellosis Urban agriculture Urban chicken Fri, 20 Oct 2017 19:05:48 +0000 TDB 605719 at http://www.zerohedge.com Putin Slams US - "The Biggest Mistake Russia Ever Made Was To Trust You" http://www.zerohedge.com/news/2017-10-20/putin-slams-us-biggest-mistake-russia-ever-made-was-trust-you <p>Russian President Vladimir Putin has not yet formally declared his intention to seek another term as leader of Russia, but many observers noted that a sweeping speech he gave at the Valdai Discussion Club in Sochi this week served as a template for his campaign ahead of the March election.</p> <p>The speech&rsquo;s overarching theme was to burnish Putin&rsquo;s accomplishments as the man who restored &ldquo;power and respect&rdquo; to Russia. But in doing so, he heaped abuse on the US and its western allies, accusing them of selectively adhering to international law, and of taking advantage of Russia during the 1990s when the country was struggling to rebuild following the collapse of the Soviet Union, <a href="https://www.bloomberg.com/news/articles/2017-10-19/putin-harangues-west-for-lack-of-respect-and-broken-trust">Bloomberg </a>reported.</p> <p>He accused the US of abusing Russia&rsquo;s trust, and seeking to take advantage of the political and economic chaos that persisted for much of the 1990s and early 2000s, according to <a href="https://www.rt.com/news/407244-putin-nuclear-chemical-treaties/">Russia Today</a>.</p> <p><strong>&ldquo;The biggest mistake our country made was that we put too much trust in you; and your mistake was that you saw this trust as a lack of power and you abused it,&rsquo;&rsquo;</strong> he said during a question-and-answer session that was carried on national television. What was needed, he said, was &ldquo;respect.&rsquo;&rsquo;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/10/04/3017.10.20putin.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/10/04/3017.10.20putin_0.JPG" style="width: 500px; height: 264px;" /></a></p> <p>High on Putin&rsquo;s list of perceived slights was the US&rsquo;s failure to keep its end of the bargain in a host of international disarmament agreements. <strong>He explained that, while Moscow doesn&rsquo;t plan to exit any existing treaties, he promised an &ldquo;instant, symmetrical response&rdquo; if Washington decides to quit first.</strong></p> <p>He accused the US of slighting Russia by forcing the country to accept international monitors during the implementation of the &ldquo;megatons to megawatts&rdquo; program, where the Russian nuclear arsenal was dramatically reduced by converting highly enrichment weapons-grade uranium to lower quality uranium suitable for use in nuclear power plants.&nbsp; <strong>Between 1993 and 2013, Russia downblended enriched uranium from the equivalent of about 20,000 of its nuclear warheads into low-enriched uranium to be used as fuel by US power stations.</strong></p> <p>During this process, Putin said, Russia operated with &ldquo;unprecedented openness and trust&rdquo; with as many as 100 US officials entitled to carry out surprise inspections of Russian nuclear facilities.</p> <p>But in return, the US has repeatedly disregarded the Russian national interest, Putin said.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;What we got in return is well-known &ndash; a complete disregard for our national interests, support for separatism in the Caucasus, a circumvention of the UN Security Council, the bombing of Yugoslavia, the invasion of Iraq, and so on.</strong> <strong>The US must have seen the state of our nuclear weapons and economy and decided to do away with international law.&rdquo;</strong></p> </blockquote> <p>He also accused the US of hypocrisy by not adhering to the terms of the 1993 Chemical Weapons Convention, a treaty that was spearheaded by the US. Russia has destroyed its chemical weapons stockpile and honored its obligations under the treaty, Putin said, while the US has repeatedly pushed back its deadline.</p> <p>These betrayals are threatening to send the US-Russia relationship back to the 1950s, he said.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;We can&rsquo;t actively participate in several international treaties, because the US is not doing anything itself. We can&rsquo;t just do it unilaterally,&rdquo;</strong> said Putin, citing the 1993 Chemical Weapons Convention, as an example of the US taking advantage.</p> <p>&nbsp;</p> <p>Last month, Russia declared that all its chemical weapons stockpiles had been disposed of &ndash; news that Western media &ldquo;decided to stay silent on,&rdquo; according to Putin &ndash; while the US has persistently delayed its own destruction schedule, and now plans to complete the process in 2023 at the earliest.</p> <p>&nbsp;</p> <p><strong>&ldquo;We destroyed everything, and then our American partners said &ndash; &lsquo;Not yet, we don&rsquo;t have money.&rsquo; So, they have a dollar printing press, yet they don&rsquo;t have money. But we, on the other hand, do?&rdquo; </strong>said Putin with heavy sarcasm.</p> </blockquote> <p>But Putin&rsquo;s biggest gripe with US foreign policy relates to George W Bush&rsquo;s decision to withdraw from the 1972 Anti-Ballistic Missile Treaty in 2002 &ndash; a decision that was made to pave the way for the construction of a missile defense shield in Europe. The Kremlin has vehemently objected to the missile shield.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;This treaty was the cornerstone of the entire international security framework in the area of strategic weapons. But despite spending years trying to persuade our colleagues otherwise, we weren&rsquo;t able to hold our partners inside the agreement,&rdquo;</strong> said Putin.</p> </blockquote> <p>Putin also responded to US President Donald Trump criticisms of another treaty between Russia and the US - the New START treaty signed in 2011. Through 2021, it stipulates that both sides are allowed to have up to 1,550 active nuclear warheads. Trump has criticized the treaty as an example of poor Obama-era dealmaking. Putin has also expressed dissatisfaction with the treaty.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;We are hearing that the other side is also not pleased with New START,&rdquo;</strong> Putin said. <strong>&ldquo;We are not going to quit it. Maybe we are ourselves dissatisfied with certain aspects of it, but there is always an element of compromise. So, we are going to fulfil our obligations.&rdquo;</strong></p> </blockquote> <p>Other parts of Putin&rsquo;s election strategy were also on display during the carefully choreographed session, according to Evgeny Minchenko, a political consultant attending the forum who spoke with Bloomberg. Sharing the stage with Putin in Sochi was Jack Ma, the founder and chairman of China&rsquo;s Alibaba Group Holding Ltd. Ma delivered a motivational speech on the future benefits of technology and offered to &ldquo;join in the development of the Russian economy.&rsquo;&rsquo;</p> <p>Putin will make a high-profile push to digitize the Russian economy as a key plank in his election campaign, Minchenko said. A second campaign message will be government renewal, replacing longer-serving officials with a younger cadre, both in the administration and regional governorships. Some governors have already been replaced.</p> <p>&ldquo;I&rsquo;m pretty sure Putin is going to run,&rsquo;&rsquo; Minchenko said.&nbsp;</p> <p><u><strong>Watch the full speech below:</strong></u></p> <p><iframe allowfullscreen="true" allowtransparency="true" frameborder="0" height="315" scrolling="no" src="https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2FSputnikNews%2Fvideos%2F10155645726306181%2F&amp;show_text=0&amp;width=560" style="border:none;overflow:hidden" width="560"></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="765" height="404" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/3017.10.20putin.JPG?1508503385" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/putin-slams-us-biggest-mistake-russia-ever-made-was-trust-you#comments Anti-Ballistic Missile Treaty China Donald Trump Foreign policy of Vladimir Putin Foreign relations of Russia Government Grand Croix of the Légion d'honneur International relations Iraq Missile defense New START Nuclear Power Politics Politics of Russia Russia–United States relations U.N. Security Council United States national missile defense Uranium Valdai Discussion Club Vladimir Putin Vladimir Putin War Fri, 20 Oct 2017 18:59:03 +0000 Tyler Durden 605686 at http://www.zerohedge.com Trump Considers Bringing Both Powell And Taylor To The Fed Together http://www.zerohedge.com/news/2017-10-20/gold-yen-drop-trump-suggests-bringing-powell-and-taylor-together-fed <p>The farce is now complete.</p> <p>What is the best way to run schizophrenic monetary policy in a schizophrenic country, where the Fed sees &quot;mysterious&quot; deflation everywhere even as most ordinary consumers can&#39;t afford to pay their health insurance, resulting in Fed chair candidates ranging from the extremely hawkish end to the dovish one? Simple: if you are Donald Trump, <strong>you bring both of them in</strong>.</p> <ul> <li><strong>TRUMP SAYS BRINGING TAYLOR, POWELL TO FED TOGETHER AN OPTION</strong></li> </ul> <p>Why? Speaking on Fox News Trump &quot;explained&quot; that &ldquo;<strong>It is in my thinking, and I have a couple of others things in my thinking but I like talent and they&rsquo;re both very talented people.&quot;</strong></p> <p>Which is great news, because if just Taylor is bullish, and just Powell is even more bullish, the two together will send the S&amp;P to 3,000 in a few days.</p> <p>Of course, two may enter, but if the market ever has an even 1% drop, just one - or none - will leave.</p> <blockquote class="twitter-tweet" data-partner="tweetdeck"><p dir="ltr" lang="en">TRUMP SAYS BRINGING TAYLOR, POWELL TO FED TOGETHER AN OPTION</p> <p>only one leaves <a href="https://t.co/k0F8JrPxar">pic.twitter.com/k0F8JrPxar</a></p> <p>&mdash; zerohedge (@zerohedge) <a href="https://twitter.com/zerohedge/status/921437740968931330?ref_src=twsrc%5Etfw">October 20, 2017</a></p></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p>What about Yellen? Isn&#39;t she &quot;very talented&quot; too?&nbsp; Well...</p> <ul> <li><strong>TRUMP SAYS HE LIKES JANET YELLEN `A LOT&#39;: FOX BUSINESS</strong></li> </ul> <p>So no... but there is still a chance: if Yellen can get the S&amp;P to close at 2,600 today, she stays.</p> <p><a _mce_href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/yellen%20teaser%205.jpg" href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/yellen teaser 5.jpg"><img _mce_src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/yellen%20teaser%205_0.jpg" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/yellen%20teaser%205_0.jpg" style="width: 560px; height: 315px;" /></a></p> <p>Odds continue to swing wildly...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_yell1_1.png"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_yell1_1_0.png" style="width: 560px; height: 196px;" /></a></p> <p>Meanwhile, the dollar jump, while Yen and Gold drop.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_fed.png"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2017/10/17/20171020_fed_0.png" style="width: 561px; height: 328px;" /></a></p> <p>And while we wait the decision, here is an artist&#39;s impression of what the Fed hiring process will look like under Trump.</p> <p><iframe frameborder="0" height="315" src="https://www.youtube.com/embed/pmRAiUPdRjk" width="560"></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="1024" height="576" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/yellen%20teaser%205_3.jpg?1508524046" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/gold-yen-drop-trump-suggests-bringing-powell-and-taylor-together-fed#comments American people of German descent Business CAPTCHA Climate change skepticism and denial Donald Trump Donald Trump Donald Trump presidential campaign Economy of the United States Fox Business Fox News Janet Yellen Janet Yellen Monetary Policy None The Apprentice Twitter Twitter United States US Federal Reserve WWE Hall of Fame Yen Fri, 20 Oct 2017 18:31:55 +0000 Tyler Durden 605718 at http://www.zerohedge.com Why US Tax Reform Will Put Even More Pressure On Dollar Funding Markets http://www.zerohedge.com/news/2017-10-20/why-us-tax-reform-will-add-even-more-pressure-dollar-funding-markets <p>On Wednesday, <a href="http://www.zerohedge.com/news/2017-10-18/dollar-funding-shortage-it-never-went-away-and-its-starting-get-worse-again">we noted the renewed tightness </a>developing in dollar funding markets. Ignoring embryonic signs of stress in the financial “plumbing” can be dangerous. The divergence of LIBOR from Fed Funds on 9 August 2007, which occurred two months prior to the peak in the Dow, always comes to mind. Fast-forwarding to the present when Mark Cabana, Bank of America’s head of US STIR, has been fielding client questions about the impact of proposed US tax reform. In particular, clients asked for Cabana’s view on what effect dollar repatriation by US corporates might have on funding markets if favorable tax treatment is forthcoming. &nbsp;</p> <p>Spoiler alert – negative for dollar funding markets (and of course positive for the dollar).</p> <p>Cabana explains “As Washington has increasingly focused on tax reform, clients have asked questions about how repatriation might impact the front end of the US rates curve. While there are still many unknown elements of the plan, we believe repatriation could provide modest upward USD funding pressure for foreign banks but likely leave the overall stock of commercial paper outstanding little changed.”</p> <p>There is the potential for at least $1.5 trillion in offshore funds to be repatriated, but Cabana notes that a large portion of offshore dollars are already invested in intermediate tenor Treasury, agency and corporate holdings. If pertinent legislation was passed, he believes that dollar repatriation would occur relatively quickly, as there would be limited incentive for funds to remain offshore.</p> <p>Here is his view summarized...</p> <ol> <li><strong>Offshore USD holdings analysis shows limited allocation to very front-end of curve and EU banks largest unsecured borrowers.</strong><br /><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/cabana%201.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/cabana%201_0.jpg" width="500" height="279" /></a></li> <li><strong>Repatriation would lead to dollar funding pressure “as corporates trim unsecured bank lending, both outright and through offshore MMF.”</strong></li> <li><strong>Cross currency basis swaps – notably </strong><strong>EUR/USD and JPY/USD - would move further into negative territory with FRA-OIS spread widening by 2-6bp. </strong></li> </ol> <p>Cross currency basis swaps are negative and trending downwards, but are still some way from signalling the extreme shortage of dollar liquidity, especially in the Yen, at the end of 2016.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/bofa%20chart%202.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/bofa%20chart%202_0.png" width="500" height="281" /></a></p> <p>Cabana elaborates “The modest bank funding pressure could come as corporates trim unsecured bank lending, both outright and through offshore money market mutual funds (MMF). This could modestly widen short-dated FRA-OIS spreads by 2-6bp. It could also contribute to more negative levels of the EURUSD and JPYUSD cross currency basis given EU and Japanese financials' exposure to offshore prime MMF. A potential repatriation next year could add to existing expected funding pressures as the Treasury boosts its cash balance and the Fed's balance-sheet unwinds.”</p> <p>So, there are <strong>three potential sources of pressure for dollar funding markets</strong>:</p> <ol> <li>From rebuilding the Treasury’s cash balance (simultaneous reduction in bank reserves) on the Fed’s balance sheet. The cash balance is currently $170bn, having reached about $440bn before the drawdown.</li> <li>Reduction in the Fed’s inventory of securities when it implements tapering.</li> <li>Repatriation of corporate dollar holdings overseas.</li> </ol> <p>As we <a href="http://www.zerohedge.com/news/2017-10-18/dollar-funding-shortage-it-never-went-away-and-its-starting-get-worse-again">highlighted previously</a>, Cabana sees a large reserve drain in Q2 2018...</p> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/10/17/bank%20reserves%20teaser_0.jpg" width="500" height="315" /></p> <p>... when more severe funding strains are likely to emerge. Pressure in dollar funding markets will only accelerate, especially once bank reserves decline by over $1 trillion in under two years.</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="274" height="160" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/dollar%20funding.jpg?1508517013" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/why-us-tax-reform-will-add-even-more-pressure-dollar-funding-markets#comments Bank Banking Business Commercial Paper Corporate bond European Union Federal Reserve System Finance Financial services LIBOR Libor Money Swap US Federal Reserve Yen Fri, 20 Oct 2017 18:30:01 +0000 Tyler Durden 605710 at http://www.zerohedge.com Wells Fargo Shares Dip As Bank Fires 4 FX Traders Following Investigations http://www.zerohedge.com/news/2017-10-20/wells-fargo-shares-dip-bank-fires-4-forex-bankers <p>Wells Fargo CEO Tim Sloan received the patented Elizabeth Warren treatment during testimony before the Senate Banking Committee last month when the Massachusetts Senator accused him of sharing in the blame for the <strong>bank&rsquo;s fraudulent sales practices and opined that he &lsquo;should be fired&rsquo;, </strong>echoing comments she made about his predecessor, John Stumpf, a year earlier.</p> <p>And just as the CEO has been making the media rounds to try to rehabilitate the bank&rsquo;s battered public image, <strong>yet another scandal appears to be breaking - but this time it originated in the bank&rsquo;s investment banking unit.</strong></p> <p><strong>WSJ reported that the bank has fired four foreign-exchange bankers amid an investigation into that business by both the bank and regulators.</strong></p> <p>While the nature of the purported misconduct is unclear judging by the report, in an amusing coincidence, the news of the firings broke as former-HSBC FX trader Mark Johnson awaits the verdict on whether he defrauded a client when he was running part of HSBC&rsquo;s FX sales business in London. <a href="https://www.wsj.com/articles/wells-fargo-fires-fx-bankers-investigates-foreign-exchange-business-1508518745">WSJ </a>reports the bankers were fired for cause.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/10/18/2017.10.20wells.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/10/18/2017.10.20wells_0.JPG" style="width: 500px; height: 243px;" /></a></p> <p>The firings come as the bank continues with a wide ranging internal investigation that over the summer revealed that the bank had overcharged clients for certain auto insurance and mortgage products. Recently, the OCC said the bank may need to refund more than $80 million to customers relating to these sales in a report that was first disclosed by the New York Times.</p> <p><strong>All of those fired appear to be senior employees in the bank&rsquo;s FX sales and trading hierarchy. </strong>Meanwhile, another senior employee was abruptly moved to another part of the business.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>Those fired, the people said, were Simon Fowles, recently head of foreign exchange trading; Bob Gotelli, recently head of foreign exchange sales; Jed Guenther, recently a regional head of foreign exchange; and Michael Schaufler, chief spot dealer.</p> <p>&nbsp;</p> <p>The bankers didn&rsquo;t immediately respond to requests for comment or declined to comment.</p> <p>&nbsp;</p> <p>The prior head of the foreign exchange group, Sara Wardell-Smith, was moved to a different role at the bank, the people said. Ms. Wardell-Smith&rsquo;s LinkedIn profile refers to a role beginning in October leading part of Wells Fargo&rsquo;s financial institutions group. She had held several roles in the bank&rsquo;s foreign-exchange group after joining Wells Fargo in 1995 and led the group for the past decade.</p> <p>&nbsp;</p> <p>Ms. Wardell-Smith didn&rsquo;t respond to requests for comment.</p> <p>&nbsp;</p> <p>The bank spokeswoman said Ms. Wardell-Smith accepted a new position as Americas regional leader in Wells Fargo&rsquo;s financial institutions group. She added that the bank&rsquo;s foreign-exchange business &ldquo;will continue to serve our clients under the leadership of Ben Bonner.&quot;</p> <p>&nbsp;</p> <p>The bank&rsquo;s issues, though, had mostly been confined to the retail-banking business. The foreign-exchange investigation now shows there is also trouble in Wells Fargo&rsquo;s investment-banking arm. The issues have emerged separate from a review of business practices in the wake of the sales-practices scandal, according to a person familiar with the matter.</p> <p>&nbsp;</p> <p>A Wells Fargo spokeswoman confirmed the departures after inquiries from The Wall Street Journal.</p> </blockquote> <p>As <a href="https://www.wsj.com/articles/wells-fargo-fires-fx-bankers-investigates-foreign-exchange-business-1508518745">WSJ </a>points out, Wells Fargo&rsquo;s investment-banking, securities and markets division, known as Wells Fargo Securities, is a fraction of the size of its U.S. big-bank peers. Its&nbsp; US investment-banking market share is just about 4% as of September, Dealogic said. And its forex desk is also smaller than its peers. Notably, the bank&rsquo;s FX shop avoided being caught up in investigations into collusion between market participants to move foreign-currency rates for their own financial benefit. Those investigations led to more than $5 billion in combined penalties at a handful of large US and European banks. Last year, Barclays and a handful of other banks pled guilty to conspiring to manipulate currency prices. Earlier this year, former Barclays FX trader Jason Katz became the first person to plead guilty in the DOJ&rsquo;s probe.</p> <p>The question now is, will this scandal end with the traders&rsquo; firing? Or will the DOJ move against Wells and open a criminal probe? If evidence of &ldquo;manipulation&rdquo; is found (of course, manipulation today looks a lot like what were once believed to be acceptable hedging strategies by large dealers) it could lead to a crackdown.</p> <p>Wells shares dipped on the news, but remained higher on the day:</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/10/18/2017.10.20wells.JPG"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017/10/18/2017.10.20wells_1_0.JPG" style="width: 500px; height: 293px;" /></a></p> <p>While it&#39;s foolish to jump to conclusions about the nature of the scandal, one thing&rsquo;s for sure: since most Americans don&rsquo;t even realize that there&rsquo;s such a thing as the foreign exchange market, let alone that traders are capable of manipulating it, any misconduct in that arm of the bank is bound to be less damaging than the realization that the bank&rsquo;s salespeople opened millions of fake fee-generating accounts on behalf of customers who didn&rsquo;t even know they existed.<br />&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="817" height="483" alt="" src="http://www.zerohedge.com/sites/default/files/images/user245717/imageroot/2017.10.20wells.JPG?1508522812" /> </div> </div> </div> http://www.zerohedge.com/news/2017-10-20/wells-fargo-shares-dip-bank-fires-4-forex-bankers#comments Banks Barclays Barclays Business DOJ Elizabeth Warren Finance Financial District, San Francisco Financial services Global Systemically Important Banks HSBC Bank Canada Investment banking John Stumpf Market Share New York Times Primary dealers Senate Banking Committee Testimony Wall Street Journal Wells Fargo Wells Fargo Fri, 20 Oct 2017 18:10:21 +0000 Tyler Durden 605717 at http://www.zerohedge.com