http://www.zerohedge.com/fullrss2.xml en LiaR IN The HoLe! http://www.zerohedge.com/news/2014-07-30/liar-hole <p style="text-align: center;"><iframe src="https://www.flickr.com/photos/expd/14783544611/player/" width="1024" height="775" frameborder="0"></iframe><br /> . </p> <p style="text-align: center;">&nbsp;</p> <p style="text-align: center;">&nbsp;</p> <p style="text-align: center;">.<iframe src="https://www.flickr.com/photos/expd/14692669104/player/" width="1024" height="702" frameborder="0"></iframe></p> http://www.zerohedge.com/news/2014-07-30/liar-hole#comments Wed, 30 Jul 2014 21:47:05 +0000 williambanzai7 492077 at http://www.zerohedge.com Social Media Is Making People Dumber, Fears Elliott's Paul Singer http://www.zerohedge.com/news/2014-07-30/social-media-making-people-dumber-fears-elliotts-paul-singer <p><em>Excerpted from Elliott Management's latest letter to investors,</em></p> <p><span style="text-decoration: underline;"><strong>PROGRESS?</strong></span></p> <p><strong>Some technology represents unquestioned progress</strong>, despite causing real challenges to the employment prospects of citizens who are made redundant. For example, recent advances in science and medicine have merely scratched the surface in terms of enhancing our ability to find cures for diseases in an increasingly focused way at sharply diminished cost. Also, the technology of moving people and goods in vehicles and organizing their movement on roads contains tremendous opportunities for cost and energy efficiencies, as do the areas of resource extraction, the development of alternative energy and the efficiency of food production. These are just a few obvious and impactful areas in which technological progress has lots of headroom for human betterment.</p> <p><strong>On the other hand, some technological progress is not really progress at all.</strong> Innovations in the technology of communications, including social media, provide increasingly powerful and robust platforms to disseminate information. <strong>Unfortunately, these same increasingly powerful and robust platforms are also used to spread information that is untrue, and to package information in tiny bits of faux-knowledge that (because of their sheer volume) leave little room for neither more comprehensive reading nor discussion and contemplation. </strong>This fact reinforces our view that young people need to be taught the basics as early as possible – of history, political science, philosophy and civilization. <strong>In the absence of that grounding, all of these Twitter and Facebook bits alight on a population that lacks the tools to sort or analyze what they are reading while scrunched over their Androids.</strong> (Interesting word, Android; maybe in a thinly-veiled joke, it is meant to describe the hooked users and not the device...)</p> <p><em><strong>The technology of communications also democratizes news and opinion. </strong>Although this development may seem positive at first blush, it also has some powerful negative aspects. Whatever one thinks about the “mainstream” media’s biases, there is at least a set of standards and professional codes of conduct that are more or less followed by established media outlets. Writers are edited, and editors seek to protect franchises against irresponsible communications. Bloggers, by contrast, do not really have to adhere to any such constraints, and making them hew to any standards of professional responsibility is difficult at best. The “blogosphere” effectively makes the dissemination of news and opinion a kind of dense windy fog.</em></p> <p><em>[We assume Singer does not consider Zero Hedge among the 'dense windy fog' of blogs given its readership rivals most mainstream media, but rather the meme-du-jour vox populi]</em></p> <p><strong>This overabundance of information and opinion is not a positive development in our view (although we are certainly not suggesting it be curtailed or controlled by governments).</strong> Ask yourself the following set of questions: Do people seem better informed today in the developed world? Smarter? Is the discourse more sophisticated? The answer is a resounding “no” to all those questions. <strong>Modern communication modalities play a role in this sad fact, and so does modern education, particularly higher education, which in too many cases has eschewed foundational course materials in favor of self-indulgent or ideological navel-gazing.</strong></p> <p>*&nbsp; *&nbsp; *<br />One wonders whether social media (and perhaps the legalization of pot) is Huxley's Soma for the 21st Century... a nation of compliant robots numb to original thought.</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="181" height="175" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140730_dumb.jpg?1406756752" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-30/social-media-making-people-dumber-fears-elliotts-paul-singer#comments Twitter Twitter Wed, 30 Jul 2014 21:45:57 +0000 Tyler Durden 492076 at http://www.zerohedge.com Deal Or No Deal? Argentina Declared In Selective Default, Holds Press Conference - Live Feed http://www.zerohedge.com/news/2014-07-30/deal-or-no-deal-argentina-holds-press-conference-after-sp-declares-it-selective-defa <p>After an <strong>exuberant day in Argentine bond and stock markets</strong>, we are nearing a decision. With a handful of hours left until it's all over, various 'deal's have been proposed today from Argentine bankers as a last-minute rescue package. S&amp;P has already decided that it's a done deal:</p> <ul> <li><strong>*ARGENTINA CUT TO SD FROM CCC- BY S&amp;P</strong></li> <li><strong>*ARGENTINA DEFAULTED ON $13B IN FOREIGN DEBT, S&amp;P SAYS</strong></li> <li><strong>*ARGENTINA MISSED $539M BOND PAYMENT, S&amp;P SAYS</strong></li> </ul> <p>And now, Argentine Economy Minister Axel Kicillof will speak in a press conference at country’s consulate in Manhattan (ironically a block from the holdouts' office).</p> <p>&nbsp;</p> <p>The hope:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>"The idea is to get a stay (suspension of the court order) to reach January,"</strong> said Ribeiro Mendonça. "Clearly there's a concern. There are no winners in a default scenario that brings lower levels of economic activity and a higher jobless rate. The banking sector is going to be the one that contributes the most because it is linked to the debt restructuring."</p> </blockquote> <p>The reality from S&amp;P,</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>"We are... <strong>lowering our long-and short-term foreign currency sovereign credit ratings on Argentina to selective default ('SD')</strong> from 'CCC-/C'," said the agency's release, "<strong>indicating that Argentina defaulted on some of its foreign currency obligations</strong>. At the same time, we are removing the 'CCC-/C' foreign currency ratings from CreditWatch, where they were placed with negative implications on July 1, 2014."</p> </blockquote> <p>Things do not look good:</p> <ul> <li><strong>ARGENTINA'S LEAD LAWYERS BLACKMAN AND BOCCUZZI LEAVE TALKS, SAY NO COMMENT ON STATUS OF DEBT TALKS - REUTERS WITNESS </strong></li> </ul> <p>&nbsp;</p> <p>Press conference due to start at <span style="text-decoration: line-through;">515ET</span> 530ET: <em>(click image for link to live feed)</em></p> <p><em><a href="http://tn.com.ar/envivo/24hs" target="_blank"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_ARG5_0.jpg" width="600" height="397" /></a><br /></em></p> <p>&nbsp;</p> <p>And for posterity's sake... here's the MERVAL recently...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_ARG3.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_ARG3_0.jpg" width="600" height="314" /></a></p> <p>&nbsp;</p> <p>and long-term...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_ARG4.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_ARG4_0.jpg" width="600" height="319" /></a></p> http://www.zerohedge.com/news/2014-07-30/deal-or-no-deal-argentina-holds-press-conference-after-sp-declares-it-selective-defa#comments Bond default ratings Reality Reuters Wed, 30 Jul 2014 21:12:27 +0000 Tyler Durden 492065 at http://www.zerohedge.com Whole Foods Discovers Stock Buybacks, And It's Too Little Too Late: Stock Tumbles Again http://www.zerohedge.com/news/2014-07-30/whole-foods-discovers-stock-buybacks <p>A quarter ago, <a href="http://www.zerohedge.com/news/2014-05-06/whole-foods-misses-lowers-guidance-or-what-happens-when-you-ignore-buybacks-expense-">when we commented </a>on the latest post-earnings collapse in Whole Foods stock, we said that "Whole Foods Misses, Lowers Guidance, Or What Happens When You Ignore Buybacks At The Expense Of CapEx", and broke down the results as follows:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>.. the luxury grocery chain moments ago reported revenues of $3.32 billion, missing the $3.35 billion expected, and EPS which also missed expectations of $0.41, instead printing at $0.38. Adding insult to injury, WFM also cut comp store sales guidance lowering its previous fiscal year comp store guidance from 5.5%-6.2% to 5.0%-5.5%, cutting sales growth from 11-12% to 10.5%-11%, and also cut EBITDA from $1.32-$1.37 billion to $1.29-$1.32 billion.</p> </blockquote> <p>Ok, the results were horrible, but one key thing was missing.</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>WFM continues to be a cash cow, generating tremendous amounts of bottom line cash. Which perhaps was its biggest failing as well - WFM reported that "year to date, the Company has produced $619 million in cash flow from operations and invested $362 million in capital expenditures, of which $207 million related to new stores. This resulted in free cash flow of $257 million. <strong>In addition, the Company has paid $82 million in quarterly dividends to shareholders and repurchased $117 million of common stock."</strong></p> </blockquote> <p>The problem was clear: "Alas, <strong>this is nowhere near enough shareholder friendly activity to keep investors happy in a New Normal in which buybacks tend to be far greater in amount than CapEx spending</strong>." </p> <p>As expected, the stock promptly collapsed by 10%:</p> <p><br class="Apple-interchange-newline" /><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/05/20140506_WFM_0.png" width="600" height="484" style="border: 0px; max-width: 100%; height: auto; color: #1e439a; font-family: 'Lucida Grande', Verdana, sans-serif; font-size: 13.333333969116211px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 17.333332061767578px; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; background-color: #ffffff;" /></p> <p>&nbsp;</p> <p>A quarter later, Whole Foods management seems to have read our lament and acted accordingly. On the chart below see if you can figure out which is the company's quarterly stock repurchase and capex activity without peeking at the legend:</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07-overflow/WFM%20capex%20vs%20buybacks.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07-overflow/WFM%20capex%20vs%20buybacks_0.jpg" width="600" height="352" /></a></p> <p>&nbsp;</p> <p>Indeed, that red bar soaring from a negligible $55 million to a whopping $361 million is precisely what happens when a company realizes that its only recourse to "goose" EPS is to go full tilt buying back its stock in the open market. </p> <p>And sure enough, when WFM reported earnings moments ago, it "magically" beat EPS expectations of $0.39, courtesy of its raging repurchasing activity, printing a $0.41 EPS.</p> <p>However, that was as far as it went. Unfortunately, while this time Whole Foods remember to repurchase as much stock as it could, it missed the key metrics starting with comp store sales, which were +3.9% on expectations of 4.8%, but the biggest impact was the reduced full year guidance as follows:</p> <ul> <li>Sales growth: 9.6-9.9%, down from 10.5-11.0%</li> <li>Comp store sales growth: 4.1-4.4%, down from 5.0%-5.5%</li> <li>Operating margin: 6.4%-6.5%, down from 6.5-6.6%</li> <li>EPS growth: 3-4%, down from 3-6%.</li> </ul> <p>And so on. The stock reaction:</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07-overflow/20140730_WFM.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/07-overflow/20140730_WFM_0.jpg" width="600" height="496" /></a></p> <p>So while we congratulate WFM management on finally figuring out that in the New Normal financial engineering is perhaps the only thing that matters to get the algo momentum ignition boost upon announcing earnings, next quarter it may want to pay some more attention to the underlying business model too.</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="941" height="552" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/WFM%20capex%20vs%20buybacks.jpg?1406753808" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-30/whole-foods-discovers-stock-buybacks#comments Capital Expenditures New Normal Wed, 30 Jul 2014 20:58:51 +0000 Tyler Durden 492064 at http://www.zerohedge.com Portuguese Regulator Bans Short-Selling After Banco Espirito Santo Unveils Massive $5 Billion Loss http://www.zerohedge.com/news/2014-07-30/portuguese-regulator-bans-short-selling-after-banco-espirito-santo-unveils-massive-5 <p>Having waited until after the US equity markets closed, Portugal's troubled <strong>Banco Espirito Santo unveiled an enormous EUR 3.577 Billion loss - that is 15 times larger than the loss the bank suffered a year earlier</strong>. The data&nbsp; - to end-June, before the crisis really got going - already shows notable deposit flight, a 73.1% plunge in banking income, and a EUR 3 billion collapse in repoable assets (i.e. liquidity). On the heels of this Portugal's securities regulator has <strong>enforced a short-selling ban on BES</strong>... we suspect they would not have done that if all was systemically well in Portugal. </p> <p><em>For some context on the loss... BES market cap at the close today was less than EUR 2 billion...</em></p> <p>Highlights (or lowlights) of the data as of June 30th - before the crisis escalated</p> <p><span style="text-decoration: underline;"><strong>A collapse in banking income</strong></span></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_BES1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_BES1_0.jpg" width="600" height="468" /></a></p> <p>&nbsp;</p> <p>Plunge in liquidity, collapse in Net Income, jump in operating costs, and tumble in total equity...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_BES2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_BES2_0.jpg" width="600" height="826" /></a></p> <p>&nbsp;</p> <p>*&nbsp; *&nbsp; *</p> <p>With the President warning this is systemic, Draghi better hope they can figure out a bailout (or bail-in) soon...</p> <p>*&nbsp; *&nbsp; *</p> <p>Full data release below:</p> <p style="margin: 12px auto 6px auto; font-family: Helvetica,Arial,Sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 14px; line-height: normal; font-size-adjust: none; font-stretch: normal; display: block;"> <a href="http://www.scribd.com/doc/235481102/BES-Results" title="View BES Results on Scribd" style="text-decoration: underline;">BES Results</a></p> <p><iframe src="//www.scribd.com/embeds/235481102/content?start_page=1&amp;view_mode=scroll&amp;show_recommendations=true" width="100%" height="600" frameborder="0" scrolling="no"></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="1025" height="800" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140730_BES1.jpg?1406753205" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-30/portuguese-regulator-bans-short-selling-after-banco-espirito-santo-unveils-massive-5#comments Equity Markets Portugal Wed, 30 Jul 2014 20:46:19 +0000 Tyler Durden 492063 at http://www.zerohedge.com Right Now: House Voting Whether To Sue Obama http://www.zerohedge.com/news/2014-07-30/right-now-house-voting-whether-sue-obama <p>House Republicans are expected to formally approve their lawsuit against President Obama today. As <a href="http://www.usatoday.com/story/opinion/2014/07/27/president-obama-house-speaker-john-boehner-executive-orders-editorials-debates/13244117/?Source=GovD">John Boehner wrote earlier in the week</a>, <em>"President Obama has overstepped his constitutional authority — and it is the responsibility of the House of Representatives to defend the Constitution."</em> <strong>Voting has started on the 'impeachment lite' bill...</strong></p> <p>&nbsp;</p> <p>Click image for link to CSPAN coverage...</p> <p><a href="http://www.c-span.org/live/" target="_blank"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_impeach_1.jpg" width="558" height="414" /></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="661" height="467" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140730_impeach.jpg?1406751464" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-30/right-now-house-voting-whether-sue-obama#comments President Obama Wed, 30 Jul 2014 20:18:01 +0000 Tyler Durden 492061 at http://www.zerohedge.com Bonds & Black Gold Battered But Stocks Give Up GDP Gains http://www.zerohedge.com/news/2014-07-30/bonds-black-gold-battered-stocks-give-gdp-gains <p>While equity markets were in focus for the mainstream, <strong>the big moves today occurred in Treasuries and oil prices</strong>. From the GDP release this morning, <strong>Treasury yields surged higher,</strong> rallied briefly after FOMC, before closing near the high-yields of the day (up around 10bps or the most in 9 months).<strong> Oil prices started to tumble at around 1030ET</strong>, flushed again on EU close, tumbled early afternoon on sanctions headlines, then pumped-and-dumped after FOMC to <strong>close at near 3-month lows (below $100)</strong>. Equity markets surged on GDP, dumped on sanctions, pumped-and-dumped on FOMC, then lifted to the close. <strong>Only the Nasdaq ends the day above pre-GDP data levels</strong>. On the day, only the Dow closed the day red. Gold and silver chopped around in a narrow range as the USD index roundtripped from early GDP gains after FOMC. VIX closed modestly higher on the day. <strong>The Russell 2000 is -4.2% for July, its worst month in 2 years.</strong></p> <p>&nbsp;</p> <p>Post-GDP, only the Nasdaq held its gains...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD4.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD4_0.jpg" style="width: 600px; height: 496px;" /></a></p> <p>&nbsp;</p> <p>Post FOMC, stocks roundtripped then limped higher into the close...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD5.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD5_0.jpg" style="width: 600px; height: 393px;" /></a></p> <p>&nbsp;</p> <p>But on the day, only the Dow closed red...and S&amp;P unch...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD6.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD6_0.jpg" style="width: 600px; height: 588px;" /></a></p> <p>&nbsp;</p> <p>Since the MH17 Headlines only the bubblicious Nasdaq is holding on to gains...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD7.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD7_0.jpg" style="width: 600px; height: 329px;" /></a></p> <p>&nbsp;</p> <p>Treasuries dumped...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD2.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD2_0.jpg" style="width: 600px; height: 319px;" /></a></p> <p>&nbsp;</p> <p>&nbsp;</p> <p>Oil slumped below $100 - 3-mo lows...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD1.jpg"><img height="651" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD1_0.jpg" width="600" /></a></p> <p>&nbsp;</p> <p>Gold and silver tread water but oil dumps...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD3.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_EOD3_0.jpg" style="width: 600px; height: 314px;" /></a></p> <p>&nbsp;</p> <p><em>Charts: Bloomberg</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="1154" height="954" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140730_EOD4.jpg?1406750430" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-30/bonds-black-gold-battered-stocks-give-gdp-gains#comments Equity Markets headlines NASDAQ Russell 2000 Wed, 30 Jul 2014 20:04:27 +0000 Tyler Durden 492060 at http://www.zerohedge.com Obama's Message To Republicans: "Stop Just Hatin’ All The Time" http://www.zerohedge.com/news/2014-07-30/obamas-message-republicans-stop-being-mad-all-time-stop-stop-just-hatin%E2%80%99-all-time <p>Two weeks ago the head of the <em>"most transparent administration ever</em>" (perhaps to the NSA?), president Obama, <a href="http://www.zerohedge.com/news/2014-07-10/barack-obama-dont-get-cynical-get-hopey">told the common American </a>to "not be cynical" and have hope. Today, speaking appropriately in an ornate theater in Kansas City, he had a message for republicans: <strong>"Stop being mad all the time. Stop. Stop. Stop just hatin’ all the time."</strong></p> <p><a href="http://www.reuters.com/article/2014/07/30/us-usa-obama-republicans-idUSKBN0FZ24B20140730?feedType=RSS&amp;feedName=politicsNews&amp;utm_source=dlvr.it&amp;utm_medium=twitter&amp;dlvrit=574655">Reuters has more</a>:</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>"They're not happy that I'm president, but that's OK. Come on!" he said, gesturing as if to welcome lawmakers to a table.</p> <p>&nbsp;</p> <p>"I've only got a couple of years left, come on, let's get some work done. Then you can be mad at the next president," he said, chuckling.</p> </blockquote> <p>This is taking place <a href="http://www.zerohedge.com/news/2014-07-30/obama-infuriates-republicans-latest-plan-deport-fewer-illegal-immigrants">hours after it was reported </a>that Obama, in a clear challenge to republicans, was preparing to announce a plan to deport <em>fewer </em>illegal immigrants, even as one of the biggest immigration scandals in recent years has emerged as the relentless influx of illegal immigrant of Central American children into southern states, something even Obama has <a href="http://www.zerohedge.com/news/2014-07-24/obama-prepares-send-national-guard-texas-flood-immigrant-children-overwhelms-us">acknowledged is becoming a problem</a>.</p> <p>So why the attempt to fire up a confrontation with the GOP?</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Obama has been delivering variations of the fiery stump speech all summer as he tours the country trying to motivate Democrats - and wealthy donors - to get involved in November's congressional elections.</p> <p>&nbsp;</p> <p><strong>His aim is to energize Democratic voters ahead of the elections in hopes of stopping Republicans from gaining control of the Senate, which would, when joined with a Republican hold on the House, could make it extremely difficult for him to pursue his agenda in his last two years in office.</strong></p> </blockquote> <p>One could almost accuse Obama - the <a href="http://www.zerohedge.com/news/2014-07-02/obama-worst-president-world-war-ii-more-say-us-would-be-better-under-romney-latest-p">most unpopular president since World War II </a>- of taunting republicans to commence the impeachment proceedings that some of his adversaries have floated in recent weeks, in order to get democrats to "rally around the flag" ahead of the crucial mid-term elections.</p> <p>What one certainly can't accuse the president of, is taking responsibility. As AP reported earlier, in the endless feud over Obamacare, the latest scapegoat for the disastrous rollout of the website has been found. </p> <blockquote class="twitter-tweet" lang="en"><p>BREAKING: AP Sources: Nonpartisan investigation finds management failure led to <a href="http://t.co/36AvJ2kcCB">http://t.co/36AvJ2kcCB</a> problems.</p> <p>— The Associated Press (@AP) <a href="https://twitter.com/AP/statuses/494530475487424512">July 30, 2014</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><p>And speaking of government, and thus capital misallocation and inefficiency, <strong>the GAO also reported that the administration has spent roughly $840 million on HealthCare.gov, including more than $150 million just in cost overruns for the version that failed so badly when it launched last year.</strong> </p> <p>But as noted above, blame managers, not the president. <a href="http://www.nationaljournal.com/health-care/obamacare-website-has-cost-840-million-20140730">From National Journal</a>: "The Government Accountability Office says cost overruns went hand-in-hand with the <strong>management failures that led to the disastrous launch of HealthCare.gov and the 36 state insurance exchanges it serves.</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>GAO's report, prepared for a Thursday Energy and Commerce Committee hearing, details a long series of management, oversight and contracting problems that plagued the entire process, from risky contracting practices in 2011 through the botched launch last October.... the GAO says similar problems could arise again without structural changes in the way the government manages its contracts and spending. </p> </blockquote> <p>Remember: whatever you do, <em><strong>don't be cynical.</strong></em></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="500" height="406" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/Obama%20b_1.jpg?1406749193" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-30/obamas-message-republicans-stop-being-mad-all-time-stop-stop-just-hatin%E2%80%99-all-time#comments Obamacare President Obama Reuters Wed, 30 Jul 2014 19:42:10 +0000 Tyler Durden 492059 at http://www.zerohedge.com 3 WTF Charts http://www.zerohedge.com/news/2014-07-30/3-wtf-charts <p>Something doesn't add up here...<em> (and rumors of heavy institutional selling is not helping)</em></p> <p>&nbsp;</p> <p><strong>Breadth is weak...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_AD.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_AD_0.jpg" width="600" height="423" /></a></p> <p>&nbsp;</p> <p>and <strong>flows are diverging...</strong></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_AD1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_AD1_0.jpg" width="600" height="359" /></a></p> <p><strong>The average Russell 2000 stock is -20% under its 52 week high</strong></p> <p>And <span style="text-decoration: underline;"><strong>High Yield credit is flashing bright red...</strong></span></p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_AD2.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2014/07/20140730_AD2_0.jpg" width="600" height="319" /></a></p> <p>&nbsp;</p> <p>As Barclays Phil Solarz warns,</p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p><strong>One of the things that sticks in my mind from 2007 (and I am NOT suggesting a 2007/2008 repeat here) is the fact that the credit markets moved before equity markets</strong>....and not just once, but three or four times through 2007 and 2008.</p> <p>&nbsp;</p> <p>I recall looking at charts like the attached and <strong>thinking "why has this correlation broken down?"</strong></p> <p>&nbsp;</p> <p><span style="text-decoration: underline;"><strong>Inevitably, the credit markets would be right, and the equity market would eventually catch up and re-establish the correlation.</strong></span></p> <p>&nbsp;</p> <p>The chart above shows (the inverse of) the junk-less-10 year spread vs the S&amp;P. <strong>The tight correlation of the past 12 months (and actually, the last 3 years) has broken down this month. </strong></p> </blockquote> <p><em>Charts: JC O'Hara at FBN Securities, @Not_Jim_Cramer, Barclays<br /></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="795" height="560" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20140730_AD_0.jpg?1406731219" /> </div> </div> </div> http://www.zerohedge.com/news/2014-07-30/3-wtf-charts#comments Barclays Equity Markets High Yield Jim Cramer Russell 2000 Wed, 30 Jul 2014 19:21:48 +0000 Tyler Durden 492057 at http://www.zerohedge.com White House Retaliates, "Condemns" Israeli Shelling Of UN School In Gaza http://www.zerohedge.com/news/2014-07-30/white-house-retaliates-condemnds-israeli-shelling-un-school-gaza <p>It was only a matter of time. </p> <p>Following yesterday's scandalous release of the <a href="http://www.zerohedge.com/news/2014-07-29/shocked-white-house-slams-fabrication-after-israel-tv-leaks-damning-transcript-obama">Obama-Natanyahu phone call transcript </a>by Israel's Channel 1, which officials on both sides have claimed was a fake (due to its clearly negative implications for US foreign policy which appears painfully weak) yet which the media outlet has defended as authentic, citing a "senior American official" as a source, one was wondering how long it would take for the White House to "teach" Israel a lesson, and put it in its place. The answer: less than 24 hours. <strong>Moments ago, the White House officially "condemned" the shelling of a United Nations school in Gaza that local authorities estimated killed at least 15 Palestinians who were sheltering there. </strong></p> <p>Still, to appear measured, the US also condemned Hamas, although indirectly: "We are extremely concerned that thousands of internally displaced Palestinians who have been called on by the Israeli military to evacuate their homes are not safe in U.N. designated shelters in Gaza," White House National Security Council spokeswoman Bernadette Meehan said, cited by Reuters. "<strong>We also condemn those responsible for hiding weapons in United Nations facilities in Gaza."</strong></p> <p>As AP adds, this is "the sharpest criticism the U.S. has leveled at Israel over the more than three weeks of fighting between Israel and Hamas militants in Gaza." In fact, it may be the first time in recent history when the US has condemned anything to do with Israel. </p> <p>Exciting, yes? </p> <p>No, not really, because as everything else coming out of the White House in the past 6 years, this too was merely for popular theater purposes. </p> <p>How do we know? Because this hit moments later.</p> <blockquote class="twitter-tweet" lang="en"><p>JUST IN: US is re-supplying Israel Defense Forces with several categories of ammunition. Via <a href="https://twitter.com/vplus">@vplus</a></p> <p>— PzFeed Top News (@PzFeed) <a href="https://twitter.com/PzFeed/statuses/494538584234688512">July 30, 2014</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script><blockquote class="twitter-tweet" lang="en"><p>MORE: U.S. is resupplying Israel with certain ammunition. Would come from weapons stockpile U.S. keeps inside Israel. CNN</p> <p>— PzFeed Top News (@PzFeed) <a href="https://twitter.com/PzFeed/statuses/494541532608081920">July 30, 2014</a></p></blockquote> <script src="//platform.twitter.com/widgets.js"></script> http://www.zerohedge.com/news/2014-07-30/white-house-retaliates-condemnds-israeli-shelling-un-school-gaza#comments Israel national security Reuters White House Wed, 30 Jul 2014 19:05:51 +0000 Tyler Durden 492054 at http://www.zerohedge.com