http://www.zerohedge.com/fullrss2.xml/Banks%20and%20insurers%20defend%20%C3%A2%E2%82%AC%CB%9Cliquidity%20swaps%C3%A2%E2%82%AC%E2%84%A2 en Hidden Agenda Perpetrated By Congress & The Fed Exposed In One Simple Chart http://www.zerohedge.com/news/2016-08-26/hidden-agenda-perpetrated-congress-fed-exposed-one-simple-chart <p><a href="http://www.firstrebuttal.com/hidden-agenda-perpetrated-by-congress-and-the-fed-in-one-chart/"><em>Submitted by Thad Beversdorf via FirstRebuttal.com,</em></a></p> <p>I like to say <strong>policy objectives are invisible ink and policy results are the coloured glasses that expose them.</strong> &nbsp;You see,&nbsp;policy makers always tell us how they design and implement policies targeted at middle class America. &nbsp;However, time after time after time, <strong>the only segment of society that fails to realize any benefit from any policy is middle class America.</strong> &nbsp;Yet for some mind boggling reason we continue to allow these policy makers to carry on with this skullduggery.&nbsp;&nbsp;The following chart really tells you everything you need to know about economic policy objectives for the past three decades.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_thad.jpg"><img height="315" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_thad_0.jpg" width="600" /></a></p> <p>The above chart depicts&nbsp;Wall Street real profits (black line), non-financial corporate real profits (red line) and real median weekly wages and salaries (blue line) all indexed back to 1982 <strong><em>(this is an important period where antitrust policies&nbsp;broke down under the Reagan admin).</em></strong></p> <p><strong>What we find is that while median wages and salaries have increased by a paltry&nbsp;9% over the past 35 years, corporate income is up 250% and Wall Street income is up almost 800%. </strong>&nbsp;&nbsp;And so over the decades this story line about policies targeting the middle class is absolutely, in every way, a total and complete fabrication. &nbsp;This chart doesn&rsquo;t happen by accident nor could it be the result of honest mistakes.</p> <p><u><strong>The above results expose the hidden agenda perpetrated by Congress and the Fed</strong></u>. &nbsp;</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>The American middle class is a patsy in a system designed to do exactly what it has done. &nbsp;</strong></p> </blockquote> <p>International trade agreements and excessive money printing do help Wall Street and Corporate America but do not help the middle class. &nbsp;This is made absolutely clear in the above chart. &nbsp;<strong>And if you are one of those typically shallow regurgitators of the theories&nbsp;you&rsquo;ve been told, well tell it to the facts above.</strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="1451" height="761" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160826_thad.jpg?1472213790" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-26/hidden-agenda-perpetrated-congress-fed-exposed-one-simple-chart#comments Corporate America Fri, 26 Aug 2016 13:10:49 +0000 Tyler Durden 570680 at http://www.zerohedge.com How Deutsche Bank Can Destroy Europe http://www.zerohedge.com/news/2016-08-26/how-deutsche-bank-can-crush-europe <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">How can Deustche Bank destroty the EU? Capital fight and exteme, involuntary deleveraging. DB is closing nearly 200 German bank branches. Not a big deal, right? DB's depositor base is 111% of German GDP...</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;"><img src="https://blog.veritaseum.com/images/fredgraph_1.png" alt="fredgraph 1" width="4672" height="1800" style="box-sizing: border-box; vertical-align: middle; display: block; max-width: 100%; height: auto;" /></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">...not to mention a major (the major) funding source for DB's massive derivative positions. &nbsp;</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">Current news events don't portend a positive outcome for Germany's largest bank either. Bloomberg reports:&nbsp;<a href="http://www.bloomberg.com/news/articles/2016-08-25/nordlb-boosts-shipping-provisions-five-fold-warns-of-high-loss" style="box-sizing: border-box; color: #ed1c24; transition: color 400ms, background-color 400ms; outline: none; background-color: transparent;">NordLB Boosts Shipping Provisions Five-Fold, Warns of High Loss</a></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px; padding-left: 30px;"><em style="box-sizing: border-box;">Norddeutsche Landesbank boosted provisions for bad loans nearly fivefold to 1 billion euros ($1.1 billion), as Germany’s biggest shipping lender prepares for its first full-year loss since 2009.</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px; padding-left: 30px;"><em style="box-sizing: border-box;">NordLB, controlled by the state of Lower Saxony, posted a loss of 406 million euros in the first half as it&nbsp;battles a prolonged slump in maritime markets, including eight years of crisis in the container segment. That compares with a profit of 290 million euros in the same period last year.</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px; padding-left: 30px;"><em style="box-sizing: border-box;">“The shipping crisis, which further intensified in the first half of the year, has necessitated impairments that were higher than planned,” Chief Executive Officer Gunter Dunkel said in a statement. The bank lowered its outlook for the year, now anticipating a “significant” loss. It had projected a “negative result” in the spring.</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px; padding-left: 30px;"><em style="box-sizing: border-box;">...&nbsp;NordLB’s pessimistic view highlights risks at other German banks, which hold roughly one-quarter of the about 400 billion euros in global shipping loans. Under pressure to unwind sour legacy maritime assets, banks including HSH Nordbank AG and Commerzbank AG are also trying to shrink their loan books.</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">&nbsp;What does this have to do with Deutsch Bank? A lot! Because everybody wants to sell these assets that aren't considered very desirable, and all at hte same time, we've made a bad situation worse - precisely when DB can't afford it.<img src="https://blog.veritaseum.com/images/Course_images/DB_mass_selling_bad_shiping_loans.png" alt="DB mass selling bad shiping loans" width="600" height="1179" style="box-sizing: border-box; vertical-align: middle; display: block; max-width: 100%; height: auto;" /></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">Then there's the issue of DB's somewhat questionable assumptions and characteristics in its financial reporting.&nbsp;Deustche Bank addendums are quoted as saying:</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px; padding-left: 30px;"><em style="box-sizing: border-box;">"The credit risk on the securities purchased under resale agreements and securities borrowed designated under the fair value option is mitigated by the holding of collateral. The valuation of these instruments takes into account the credit enhancement in the form of the collateral received. As such there is no material movement during the year or cumulatively due to movements in counterparty credit risk on these instruments."</em></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">What???!!!&nbsp;So, the value of collateral doesn't move now? Not only does the value of collateral move, it tends to move in the exact same direction as the value of the loan, borrowing or underlying, often at an exagerrated pace in the beginning (it's markets are the first to know of turmoil). Reference my podcast i<a href="http://fileria1.video.ria.ru/Out/MP3/20160719/2016_07_19_VABANK017190716_vvqieost.yye.mp3" style="box-sizing: border-box; color: #ed1c24; transition: color 400ms, background-color 400ms; outline: none; background-color: transparent;">nterview with Max Keiser at the 2:40 marker.</a>&nbsp;Want some more? Read this page from our EU banking report a couple of quarters ago...</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;"><img src="https://blog.veritaseum.com/images/Banco_Popular_Research_teaser4.png" style="box-sizing: border-box; vertical-align: middle; display: block; max-width: 100%; height: auto;" /></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">For those who don't believe me, I med this call in early 2008 - twice. Once for Bear Stearns (<a href="http://boombustblog.com/reggie-in-the-news/item/128" title="Permanent Link to Is this the Breaking of the Bear?" style="box-sizing: border-box; color: #0033cc; transition: color 400ms, background-color 400ms; outline: 0px; font-size: 13px; font-family: Arial, Helvetica, sans-serif; line-height: 24.7px; background-image: initial; background-attachment: initial; background-color: transparent; background-position: initial; background-repeat: initial;" rel="bookmark">Is this the Breaking of the Bear?</a>) and once for Lehman Brothers (<a href="http://boombustblog.com/reggie-in-the-news/item/154" title="Permanent Link to Is Lehman really a lemming in disguise?" style="box-sizing: border-box; color: #0033cc; transition: color 400ms, background-color 400ms; outline: 0px; font-size: 13px; font-family: Arial, Helvetica, sans-serif; line-height: 24.7px; background-image: initial; background-attachment: initial; background-color: transparent; background-position: initial; background-repeat: initial;" rel="bookmark">Is Lehman really a lemming in disguise?</a><span style="box-sizing: border-box; color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 24.7px;">&nbsp;Thursday, February 21st, 2008 |</span><a href="http://boombustblog.com/reggie-in-the-news/item/203" title="Permanent Link to Web chatter on Lehman Brothers" style="box-sizing: border-box; color: #0033cc; transition: color 400ms, background-color 400ms; outline: 0px; font-size: 13px; font-family: Arial, Helvetica, sans-serif; line-height: 24.7px; background-image: initial; background-attachment: initial; background-color: transparent; background-position: initial; background-repeat: initial;" rel="bookmark">&nbsp;Web chatter on Lehman Brothers</a><span style="box-sizing: border-box; color: #666666; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 24.7px;">&nbsp;Sunday, March 16th, 2008</span>). Was I right? Of course, that was then and this is now, so the banks are better prepared, right? Of course. The graphic below was taken from our&nbsp;<a href="https://blog.veritaseum.com/index.php/homes/1-blog/184-veritaseum-blockchain-based-bank-research-hits-another-homerun-banco-popular-proven-at-significant-risk" style="box-sizing: border-box; color: #ed1c24; transition: color 400ms, background-color 400ms; outline: none; background-color: transparent;">Banco Popular report (click here for more iinfo)</a>, not from 8 years ago, but from a quarter ago - yes, 2016! Hey, there's more...</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;"><img src="https://blog.veritaseum.com/images/Banco_Popular_Research_teaser3.png" style="box-sizing: border-box; vertical-align: middle; display: block; max-width: 100%; height: auto;" /></p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">Now, just imagine that Italy's Banco Popular is the entity that DB used to hedge it's expoure, and Banco Popular (obviously) can't pay up on every(any?)thing. DB's gross exposure become's DB's net exposure as DB's notion value and market value converge near instantaneously if (or when) market shoots off in one direction (you can likely guess what direction that would be for stakeholders, and this time around that includes depositors and bondholders, not just shareholders).</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">What does this all mean? &nbsp;Well, we went through this in expclicit detail and have identified no less than 6 (and we're still actively looking) financial institutions that may have passed the EBA stress tests, but have miserbly failed our examination - and that's without adding in the bank contagion factor!</p> <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 10px; color: #333333; font-family: &quot;Open Sans&quot;, sans-serif; font-size: 14px; line-height: 24px;">To partake in this knowledge,&nbsp;<a href="https://blog.veritaseum.com/index.php/university/student-registration/guruauthor/studentregistration/" style="box-sizing: border-box; color: #ed1c24; transition: color 400ms, background-color 400ms; outline: none; background-color: transparent;">join Veritaseum University</a>&nbsp;and access the intereactive research asset called "<a href="https://blog.veritaseum.com/index.php/university/guruprograms/1-corporate-valuation-equity-research/8-uk-bank-forensic-analysis-valuation" style="box-sizing: border-box; color: #ed1c24; transition: color 400ms, background-color 400ms; outline: none; background-color: transparent;">European Bank Contagion Assessment, Forensic Analysis &amp; Valuation</a>".</p> http://www.zerohedge.com/news/2016-08-26/how-deutsche-bank-can-crush-europe#comments Bear Stearns Deustche Bank Deustche Bank Deutsche Bank Lehman Lehman Brothers Fri, 26 Aug 2016 13:03:36 +0000 Reggie Middleton 570678 at http://www.zerohedge.com US Trade Deficit Shrinks On Biggest Spike In Food & Beverage Exports In History http://www.zerohedge.com/news/2016-08-26/us-trade-deficit-shrinks-biggest-spike-food-beverage-exports-history <p>Forget the new economy, it appears - judging by July's preliminary trade data - that USA's great export is 'food and beverage'. Thanks to a<strong> 31.3% surge month-over-month </strong>in this category - the <strong>biggest MoM gain in history</strong> - the US trade deficit 'improved' to -$59.3bn (from -$64.5bn revised lower) and beat expectations of -$63bn.</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_trade.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_trade_0.jpg" width="600" height="302" /></a></p> <p>&nbsp;</p> <p>Does that look sustainable?</p> <p>Overall, non-seasonally-adjusted, things don't look quite as rosy...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_trade1.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_trade1_0.jpg" width="600" height="320" /></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="961" height="484" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160826_trade.jpg?1472216056" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-26/us-trade-deficit-shrinks-biggest-spike-food-beverage-exports-history#comments new economy Trade Deficit Fri, 26 Aug 2016 12:55:01 +0000 Tyler Durden 570677 at http://www.zerohedge.com Q2 GDP Revised Lower To 1.1%, As Expected, Even As Personal Consumption Rises http://www.zerohedge.com/news/2016-08-26/q2-gdp-revised-lower-11-expected-even-personal-consumption-rises <p>In what has been called the economic equivalent of hitting 00 on roulette, moments ago the BEA announced that Q2 GDP eased off from the original estimate of 1.2%, declining fractionally to 1.09%, and right on top of consensus estimates, which also expected a 1.1% print in the second quarter. This means that following the disappointing Q1 print of 0.83%, the first half economic growth is now officially just below 1%, or 0.096% to be precise.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/Q2%20GDP%201st%20revision.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/Q2%20GDP%201st%20revision_0.jpg" width="500" height="300" /></a></p> <p>There was little change in the constituents, with Personal Consumption revised modestly higher from an already questionable 2.83% to 2.94%, translating into 4.4% sequential increase in personal consumption, above the 4.2% expected, and higher than the pre-revised 4.2%. Also improving was fixed investment which is said to have dipped by "only" -0.42%, modestly better than the -0.52% reported a month ago. However, this was offset by a downward revision to private inventories which subtracted -1.26% from Q2 GDP, worse than the -1.16% reported previously, while trade now contibuted only 0.1%, down from 0.22% last quarter. Finally, government was also revised lower from -0.16% to -0.27%.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/Q2%20GDP%201st%20rev%20details.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/Q2%20GDP%201st%20rev%20details_0.jpg" width="500" height="298" /></a></p> <p>&nbsp;</p> <p>While there were no major surprises in the report, we urge readers to keep an eye on consumption, which as we showed one month ago, inexplicably soared in the first quarter. In fact, as shown below, after today's revision it is just shy of the highest print reported over the past five years. </p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/GSP%20personal%20consumption.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/GSP%20personal%20consumption_0.jpg" width="500" height="298" /></a></p> <p>Considering recent commentary from dollar stores which plunged most on record yesterday on the back of a collapse in low-income spending, we doubt that this seasonally adjusted and goalseeked number is even remotely close to reality. </p> <p>Finally, with real GDP now rising at just 1.2% Y/Y, entirely propped up by the consumer, any incremental weakness to US spending in the current quarter would push the US into a technical contraction.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/Real%20GDP%20change%20Y-Y.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/Real%20GDP%20change%20Y-Y_0.jpg" width="500" height="324" /></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="1260" height="755" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/Q2%20GDP%201st%20revision.jpg?1472215474" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-26/q2-gdp-revised-lower-11-expected-even-personal-consumption-rises#comments fixed Personal Consumption Reality Fri, 26 Aug 2016 12:45:14 +0000 Tyler Durden 570675 at http://www.zerohedge.com Inventory Growth Slowdown Dashes Hopes For Q3 GDP Bounce Back http://www.zerohedge.com/news/2016-08-26/inventory-growth-slowdown-dashes-hopes-q3-gdp-bounce-back <p>Following the surge in sales (on higher petroleum costs) in June (and modest build in inventories), the sales-stock ratio fell back from cycle highs (though remained deep in recessionary territory). July&#39;s preliminary data showed a <strong>notable slowdown in inventories (-0.02% vs a 0.1% expected gain and revised lower 0.2%) confirming recent PMI data of no pickup in growth in Q3</strong>. For 32 months straight, inventory growth has outpacced sales growth year-over-year with <strong>18 straight months of wholesale sales declines</strong>.</p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_inv1.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_inv1_0.jpg" style="width: 600px; height: 313px;" /></a></p> <p>&nbsp;</p> <p>Simply put - as slow as Q2 was, that was the inventory bounceback... and Q3 has slowed already, breaking the extrapolators narrative...</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_inv2.jpg"><img alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/08/25/20160826_inv2_0.jpg" style="width: 600px; height: 317px;" /></a></p> <p>But none of that matters because Janet is speaking today.</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="960" height="501" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160826_inv1.jpg?1472215245" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-26/inventory-growth-slowdown-dashes-hopes-q3-gdp-bounce-back#comments None Fri, 26 Aug 2016 12:44:11 +0000 Tyler Durden 570674 at http://www.zerohedge.com 76-Year-Old Veteran Kills Himself In VA Parking Lot After Being Denied Treatment http://www.zerohedge.com/news/2016-08-26/76-year-old-veteran-kills-himself-va-parking-lot-after-being-denied-treatment <p><a href="http://theantimedia.org/va-veteran-suicide-denied-treatment/"><em>Submitted by Carey Wedler via TheAntiMedia.org,</em></a></p> <p><strong>A 76-year-old military veteran killed himself outside a Long Island Veteran Affairs facility Sunday after being denied treatment. </strong>He was reportedly seeking help for mental health issues at the <a href="http://www.northport.va.gov/" target="_blank">Northport Veterans Affairs Medical Center</a> but was turned away, an unfortunately common experience plaguing veterans seeking healthcare in recent years.</p> <p><a href="http://www.nytimes.com/2016/08/25/nyregion/veteran-kills-himself-in-parking-lot-of-va-hospital-on-long-island.html?_r=0" target="_blank">According</a> to the <em>New York Times</em>, two people connected to the hospital spoke about the incident on the condition of anonymity. They explained <strong>&ldquo;<em>he had been frustrated that he was unable to see an emergency-room physician for reasons related to his mental health</em>,&rdquo;</strong> the <em>Times</em> reported.</p> <p>&ldquo;<em>He went to the E.R. and was denied service</em>,&rdquo; one anonymous source said.<strong> &ldquo;<em>And then he went to his car and shot himself.</em>&rdquo;</strong></p> <p>Peter A. Kaisen of Islip, New York, committed suicide in the parking lot of the Northport facility, where he had been a patient. <strong>He was in the parking lot outside Building 92, the facility&rsquo;s nursing home, when he shot himself.</strong></p> <p>One of the <em>Times&rsquo;</em> anonymous sources questioned why Kaisen had not been referred to Building 64, the mental health center at Northport.</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p>&ldquo;<em>The staff member said that while there was normally no psychologist at the ready in the E.R., one was always on call, and that the mental health building was open &lsquo;24/7</em>,&rsquo;&rdquo; the <em>Times</em> reported.</p> <p>&nbsp;</p> <p><strong>&ldquo;<em>Someone dropped the ball. They should not have turned him away</em>,&rdquo;</strong> the source said.</p> </blockquote> <p>Christopher Goodman, a spokesman for the hospital, said there &ldquo;<em>was no indication that he presented to the E.R. prior to the incident</em>,&rdquo; and the <em>Times&nbsp;</em>was unable to determine whether there was an official record of his visit to the VA on Sunday.</p> <p><strong>The Northport center has faced heightened scrutiny since the <em>Times&nbsp;</em>reported on mismanagement at the facility in 2014, but the problems at Northport are problems of the entire system.</strong></p> <p>Just last month, an Iowa military veteran suffering from PTSD and substance abuse killed himself after being denied treatment by the VA. He reportedly made an appointment seeking treatment but eventually posted on social media that he was turned away &ldquo;<em>even though he requested it and explained to a doctor that he felt his safety and health were in jeopardy,</em>&rdquo;<em>KWQC</em>, a local news outlet <a href="http://kwqc.com/2016/07/18/local-veteran-commits-suicide-after-family-says-he-was-turned-away-at-va-facility/" target="_blank">reported</a>.</p> <p>One veteran who drove to a Seattle VA last year with a broken foot was&nbsp;<a href="http://www.seattletimes.com/seattle-news/health/seattle-va-hospital-strands-veteran-outside-er-2/" target="_blank">denied assistance</a> walking from his car to the hospital entrance, a distance of a few feet. He was told to call 911, instead. One gun-wielding veteran with PTSD was <a href="http://www.cbs5az.com/story/27894238/maricopa-shooting-victim-was-az-vet-suffering-ptsd" target="_blank">shot and killed by police</a> in Maricopa County, Arizona, last year after he was turned away from the VA hospital when he sought treatment for a mental health emergency. He had routinely called suicide hotlines for help but never received the full attention he needed.</p> <p>Veteran suicides in the United States are a chronic problem. Though some&nbsp;<a href="https://msrc.fsu.edu/news/media-misleads-military-veterans-suicide-study" target="_blank">argue</a> the relatively recent figure from the VA that 22 veterans kill themselves per day is inflated, veterans still face a suicide risk higher than the rest of the American population. As <em>USA Today</em> has <a href="http://www.usatoday.com/story/news/nation/2016/07/07/veterans-suicides-young-men-women/86755132/" target="_blank">noted</a>:</p> <blockquote><div class="quote_start"><div></div></div><div class="quote_end"><div></div></div><p><strong>&ldquo;<em>In 2014, veterans accounted for 18% of all suicides in the United States, but made up only 8.5% of the population. In 2010, veterans accounted for 22% of U.S. suicides and 9.7% of the population.</em>&rdquo;</strong></p> </blockquote> <p>Further, a more recent analysis by the VA found that in 2014, <a href="http://www.usatoday.com/story/news/nation/2016/07/07/veterans-suicides-young-men-women/86755132/" target="_blank">20 veterans killed themselves per day</a>. <em>Politifact</em>, an independent fact-checker, has&nbsp;<a href="http://www.politifact.com/virginia/statements/2016/jul/14/donald-trump/donald-trump-correctly-says-20-veterans-commit-sui/" target="_blank">confirmed</a> this figure. While rates of veteran suicides appear to be declining, the figures are still troubling.</p> <p><strong>Even absent mental health issues like depression and PTSD, veterans are dying waiting for regular health care. </strong>A VA whistleblower <a href="http://www.huffingtonpost.com/2015/07/13/veterans-health-care-backlog-died_n_7785920.html" target="_blank">revealed</a> last year that 238,000 out of 847,000 veterans died after submitting requests for treatment they never received. An audit in 2014 <a href="https://www.washingtonpost.com/politics/va-audit-57000-veterans-waiting-more-than-90-days-for-appointment-at-medical-facilities/2014/06/09/599d26ee-f014-11e3-9ebc-2ee6f81ed217_story.html" target="_blank">found 57,000 veterans&nbsp;</a>were waiting more than 90 days for an appointment with the VA.</p> <p><strong>The United States government, politicians, and the media often express compassion and gratitude for veterans. </strong>To their credit, some lawmakers recently <a href="http://hightimes.com/news/laws/congress-blocks-medical-marijuana-for-veterans/" target="_blank">attempted</a> to allow veterans to use cannabis as an alternative treatment in an amendment to a budget bill &mdash; a move Congress ultimately blocked.</p> <p>But in spite of failed and often <a href="http://bigstory.ap.org/article/355ebf0f90fa4bbc9b58e1e5b9f8e3ec/va-makes-little-headway-fight-shorten-waits-care" target="_blank">unwieldy efforts</a> to reform veterans&rsquo; health care, <strong>the VA&rsquo;s systemic failures continue to leave veterans feeling ignored and abandoned by the very institutions that still claim to value them.</strong></p> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="488" height="231" alt="" src="http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/20160826_VA.jpg?1472213327" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-26/76-year-old-veteran-kills-himself-va-parking-lot-after-being-denied-treatment#comments 8.5% New York Times Fri, 26 Aug 2016 12:19:50 +0000 Tyler Durden 570670 at http://www.zerohedge.com "Will Yellen Shock Today?" http://www.zerohedge.com/news/2016-08-26/will-yellen-shock-today <p>That is the question everyone is asking today ahead of Yellen's 10am ET speech which will be titled "The Federal Reserve’s Monetary Policy Toolkit." </p> <p>The odds are low, considering that 85% of Wall Street respondents in a recent Citi survey <a href="http://www.zerohedge.com/news/2016-08-25/85-wall-street-expects-dovish-hike-signal-yellen-tomorrow">expect a "dovish hike signal</a>." To be sure, a BofA's Michael Hartnett noted earlier this week, "only once in the past 10 years has Jackson Hole been a big market mover" namely in 2010 when Bernanke signaled QE2. He does concede that&nbsp; Jackson Hole in 2016 has volatility potential given:</p> <ul> <li>Wall Street’s dependence on the Liquidity Supernova: annualized return from global government bonds YTD is 20%, the second highest return in 30 years; current bull market in US stocks (2723 days) is 2nd longest ever; at or close to all-time highs: global government bonds, IG bonds, HY bonds, EM debt, REITs, US stocks, staples, discretionary, industrials, utilities.</li> <li>Investor excess positioning in assets tied to “zero-rate” expectations</li> <li>Recent Fed hints (in particular by Brainard &amp; Bullard) that they are capitulating on their long-held forecasts of higher growth, inflation &amp; interest rates…forecasts which continue to be stubbornly ignored by the market (see contrast between Fed &amp; market dots)<br /><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/mkt%20vs%20dots_0.jpg" width="500" height="368" /></li> <li>Expectations for a dovish Fed are coinciding with macro strength in the US (most obviously in housing &amp; consumer spending) as well as highest level of wage inflation since Jan’10 (Chart 4). If average hourly earnings push above 3% YoY, it will be hard for bond yields to remain so low. But the biggest catalyst for higher yields would be stronger economic data in Europe and Japan, reversing the DM demand for Treasuries.</li> <li>Powerful rally since Feb lows which coincided with Yellen’s second day of Humphrey-Hawkins testimony: global stocks +21% (led by EM &amp; Pacific ex-Japan), commodities +27%, HY bonds +18% and EM bonds 13%; in addition, Brent crude oil has rallied 65% (Table 1);</li> </ul> <p><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/jh%20shock_0.jpg" width="500" height="351" /></p> <p>* * * </p> <p>Here is a more direct anwer to just this key question, provided by Deutsche Bank's Jim Reid who leads off this morning's note with, what else, a question whether "Yellen will shock today?" </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Because the month has been so dull, perhaps markets are getting too excited by the prospects of a meaningful speech by Yellen today that will give us a lot more clues on immediate Fed policy. <strong>However be warned because as DB's George Saravelos pointed out yesterday, she has not traditionally used Jackson Hole as a vehicle to focus on policy guidance. </strong>Last year she didn't attend and the year before her speech had no real immediate policy focus. Will this year be any different? The title of the speech is ‘The Federal Reserve’s Monetary Policy Toolkit’ and scheduled for 3pm BST/10am EST. There is no Q&amp;A which might also lessen the impact. After listening to Saravelos yesterday, this morning I had a quick think back as to whether even Bernanke used Jackson Hole as a policy shaping platform. From a quick scurry through the archives, perhaps the only time was when QE2 was hinted at in 2010. <strong>So markets have probably subconsciously elevated the importance of the symposium for FOMC clues ever since.</strong></p> <p>&nbsp;</p> <p><strong>Even if Yellen does comment on near-term policy would she really want to pre-commit to an imminent hike before September's payroll</strong>? Probably not and therefore we'd expect her to be more 'data dependent' and more dovish in her comments than some of the recent Fed speakers who have been clearly itching to raise rates with less regard for the data.</p> <p>&nbsp;</p> <p><strong>It’s worth also noting that ECB President Draghi is skipping the Jackson Hole for a second successive year</strong>. There is however a potentially interesting panel discussion taking place on Saturday which will see the ECB’s Coeure and the BoJ’s Kuroda participate alongside the Governor of the Bank of Mexico. With high expectations for further BoJ action in September it’ll be interesting to see if Kuroda in particular is any more transparent.</p> </blockquote> <p>That said, while expectations of hawkishenss are low, as we reported earlier today they are rising: Fed funds futures indicated a 57% chance of a rate hike this year, up from 36% at the end of July, while <strong>the probability of a September rate hike has rien to 32%, up from 22% a week ago, and the highest since Brexit.</strong></p> <p>&nbsp;</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/sept%20odds%20bbg.png"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/sept%20odds%20bbg_0.png" width="500" height="333" /></a></p> <p>&nbsp;</p> <p>This was catalyzed primarily by a series of hawkish Fed speeches in the past week, with Kansas City Fed President (and FOMC dissenter) Esther George reiterating her call that higher rates are warranted, while Dallas Fed chief Robert Kaplan said “the case is strengthening” for another increase. The comments by George and Kaplan came after New York Fed chief William Dudley and his San Francisco counterpart John Williams signaled a rate increase could be on the table in coming months. Vice Chair Stanley Fischer said Sunday the U.S. economy is close to the central bank’s goals and he expects growth to pick up in the future.</p> <p>Others disagree that any imminent "shock" is on the horizon: “The probability of a September rate hike, we think is still relatively low,” Mike Amey, a London-based money manager at Pacific Investment Management Co., said in an interview on Bloomberg Television. “The last set of minutes were not particularly hawkish. So they’ve had the opportunity to take a more aggressive stance for September if they wanted to, but we do think there’s a decent chance they move before the end of the year.”</p> <p>Utimately, and as always, the decision is all in Yellen's hands.</p> <p>* * * </p> <p>Finally, for traders, here is perhaps the most somber take courtesy Bloomberg commentator and former trader, Richard Breslow who says that <strong>Yellen Needs to Retake Control of the Situation</strong></p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Well, we made it. It’s finally Janet Yellen day. Has a speech by a Fed Chair ever been anticipated, dissected and stressed over to this extent<strong>? It’s partially down to the fact that she has largely, even unprecedentedly, made herself unavailable for public comment. Sending her minions out to confuse us. But more distressingly, they have put themselves in a situation where a measly 25 basis points looms like a life-changing event.&nbsp; </strong></p> <p>&nbsp;</p> <p>How quaint it seems to remember when we used to debate how much they might do. We’ve been reduced to considering <strong>whether even a hawkish hint could throw the global financial system into cardiac arrest. </strong></p> <p>&nbsp;</p> <p>Truth be told, not even the equity market will suffer for long from a one hike and low neutral-rate message. Yet, even this notion seems to require smelling salts all around.&nbsp; </p> <p>&nbsp;</p> <p>And the Fed has no business at this point forcing investors to continue to ramp up risk in every manifestation. They’re reinforcing the walls of the leverage prison from which they see no escape FOMC members have embraced the notion that the world’s fate hinges on their every move and that’s affected their judgment and, frankly, adversely affected their forecasting abilities. <strong>They’re desperately afraid of ever being wrong again after the dot-plot fiasco earlier this year. And have utterly confused forward guidance with investor manipulation. </strong></p> <p>&nbsp;</p> <p>The dollar was up last year on Fed-created expectations of aggressive rate increases. The Bloomberg dollar index is down 7% from January’s high after investors realized they were being fed hope and prayer rather than a believable plan. Yet now they worry that one hike could send things soaring. </p> <p>&nbsp;</p> <p>So, one way or another, today is a big deal, largely of their own making. Yet another reason they should consider getting off the schneid.</p> <p>&nbsp;</p> <p>Don’t forget, while Chair Yellen is the most important speaker, the event is well attended by a lot of other central bankers who might have valuable information to impart on their own plans</p> </blockquote> <div class="field field-type-filefield field-field-image-teaser"> <div class="field-items"> <div class="field-item odd"> <img class="imagefield imagefield-field_image_teaser" width="800" height="450" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/yellen%20confused%202_8.jpg?1472212860" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-26/will-yellen-shock-today#comments Bond Crude Crude Oil Dallas Fed Janet Yellen Japan Jim Reid John Williams Mexico Monetary Policy New York Fed REITs Testimony Volatility William Dudley Fri, 26 Aug 2016 12:01:18 +0000 Tyler Durden 570668 at http://www.zerohedge.com Buy Gold's August Dip? Gold's Monthly Sweet Spot In September as Chaotic Election Looms http://www.zerohedge.com/news/2016-08-26/buy-golds-august-dip-golds-monthly-sweet-spot-september-chaotic-election-looms <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Gold bullion has had its biggest gains in September over the past 20 years. Seasonally gold is entering the sweet spot with the Autumn being gold's best season and with September being gold's best month in the last 20 years.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><img src="http://news.gold-eagle.com/sites/default/files/aaron082416-3.jpg" width="751" height="407" style="height: auto; max-width: 100%;" /><br /><em><strong><a href="http://www.goldcore.com/us/gold-blog/gold-shines-most-in-september-on-seasonal-buys-bloomberg-chart-of-day/">Gold's Monthly Performance - 1994-2014 (Bloomberg)</a></strong></em></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Given the backdrop of one of the most uncertain macroeconomic, systemic, geopolitical and monetary outlooks both the U.S. and the world have ever seen, we are likely to see gold do well in its traditionally seasonal strong period. Possibly, the most vitriolic, hateful and divisive election in U.S. history is set to be witnessed and this will likely lead to considerable volatility in markets and should see the dollar come under pressure. The election date is&nbsp;Tuesday, November 8, 2016.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">The spring and summer months frequently see seasonal weakness, since gold became a traded market in 1971. Gold bullion&nbsp;often sees periods of weakness in the summer doldrum months of May, June and July.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">August tends to be a better month for gold but not this year with gold down nearly 2% in dollar terms, 3% in euro terms and 1.8% in sterling terms.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Gold’s traditional period of strength is from August through to January and February with weakness and a correction frequently seen in October. Thus, August is generally a good time to buy after the seasonal spring and summer dip.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">This year gold rose in June and July before and after the Brexit market shock and on very robust global demand. Gold has dipped this August, despite August along with September and November being some of the best months to own gold. This is seen in the charts and tables showing gold’s monthly performance over many different time frames.&nbsp;Gold’s weakest months since 1975 have been June and July (see table below) and buying gold in August has generally been a good trade.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><a href="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart4_01-08-14.png"><img src="http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart4_01-08-14.png" style="height: auto; max-width: 100%;" /></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Late summer, autumn and early New Year are the seasonally strong periods for the gold market due to robust physical demand in Asia in particular. This is the case especially in India for weddings and festivals including Diwali and into year end and, since the market was liberalised in China, for Chinese New Year when the voracious Chinese stock up on gold.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">This has been less the case in the mini bear market of recent years when unusually gold actually performed poorly in the winter months, in particular December, and somewhat oddly tended to have its seasonal low on or very close to December 31st.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Year end book closing or painting the tape? Tape painting is the illegal trading practice by hedge funds and banks who manipulate a market by buying and selling an asset to create the illusion of strength or weakness, change sentiment and to manipulate or scare off buyers who follow the trend pushing the price higher or in this case lower.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><img src="http://www.financialsense.com/sites/default/files/users/u4160/images/2016/0524/04-Gold-seasonal-May-2016.png" alt="Image result for gold seasonal 2016" style="height: auto; max-width: 100%;" /></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Interestingly, January has been one of the best months to own gold in the last five years as prices bounce from the peculiar year end lows.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Gold’s ‘summer doldrums’ period is coming to a close. Traditionally seasonal factors and less liquid markets often result in weakness in the precious metal markets, creating an attractive buying opportunity. This appears to be the case this August again.&nbsp;The data is compelling but it is important to realise that the seasonal data is just another indicator. Gold’s recent weakness could continue in the coming months - it is very unlikely given the fundamentals but possible nevertheless.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong>Conclusion</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Therefore, short term speculation should be avoided in favour of long term investment diversification.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Investors should, as ever, avoid attempting to time the market and consider&nbsp;<a href="http://www.goldcore.com/ie/gold-blog/gold-qa-how-to-allocate-dollar-cost-average-re-balance-and-store-where/">geometrically cost averaging their gold bullion</a>&nbsp;and silver bullion purchases. This way they protect themselves from market falls and also from buying again at much higher prices. They also protect themselves from not owning gold and silver bullion which is a&nbsp;risk in and off itself.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><a href="https://www.youtube.com/watch?v=P5FH9g6S2KI">Gold Bullion Q&amp;A - How To Allocate, Dollar Cost Average and Rebalance</a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Absolutely nothing has changed regarding the fundamentals driving the gold market. Janet Yellen and her merry band of central bankers are continuing ultra loose monetary policies. The money 'punchbowl' is still overflowing and there is going to be the mother of all hangovers.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Over $13 trillion of bonds are now trading negatively and now depositors are exposed to negative interest rates and&nbsp;<a href="http://info.goldcore.com/what-savers-and-depositors-need-to-do-to-protect-their-savings-and-deposits-from-bank-bail-ins">deposit bail-ins</a>.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">We are confident that gold, and silver, have resumed their long term secular bull markets. This trend is likely to continue for at least 3 years and likely for a longer period given the scale of the geopolitical risks today and indeed the very real challenges facing the financial and monetary system and consequently savers, investors and pension owners.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">Owning physical coins and or bars in your possession and owning bullion&nbsp;in allocated and most importantly in segregated accounts will continue to protect and grow wealth in the coming years.</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px; text-align: center;"><a href="http://info.goldcore.com/how-to-store-gold-bullion-the-seven-key-must-haves-in-2014"><img src="http://www.goldcore.com/us/wp-content/uploads/sites/7/2015/06/7-Key-Storage-Must-Haves.jpg" alt="GoldCore: 7 Key Storage Must Haves" width="167" height="245" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter size-full wp-image-3261" /></a><strong><a href="http://info.goldcore.com/how-to-store-gold-bullion-the-seven-key-must-haves-in-2014">Download Guide</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong>Gold and Silver Bullion - News and&nbsp;Commentary</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.cnbc.com/2016/08/25/gold-steady-as-dollar-dips-ahead-of-yellen-speech.html">Gold faces selling pressure, silver tumbles (CNBC)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.cnbc.com/2016/08/25/gold-steady-as-dollar-dips-ahead-of-yellen-speech.html">Gold steady above 4-week lows as dollar slips ahead of Yellen speech (CNBC)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.bloomberg.com/news/articles/2016-08-26/gold-near-one-month-low-with-investors-in-waiting-for-janet-mode">Gold Near One-Month Low as Investors in Waiting-for-Yellen Mode (Bloomberg)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.bloomberg.com/news/articles/2016-08-25/gold-believers-from-soros-to-ubs-lose-faith-in-mining-share-gain">Gold Believers From Soros to UBS Lose Faith in Miners’ Gain (Bloomberg)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.bbc.com/news/business-37185040">German business confidence falls post-Brexit, says Ifo (BBC)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><img src="http://www.goldcore.com/ie/wp-content/uploads/sites/19/2016/08/Gold-In_USD.png" style="height: auto; max-width: 100%; display: block; margin-left: auto; margin-right: auto;" class="aligncenter" /></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.theepochtimes.com/n3/2143524-gold-wins-in-three-out-of-four-scenarios-says-macquarie-strategist/">Gold Wins in Three out of Four Scenarios - None of them bode well for the economy (TheEpochTimes)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.bloomberg.com/news/articles/2016-08-25/gold-holds-near-one-month-low-as-clues-on-u-s-rates-awaited">Punch-Drunk Gold Investors Eye Yellen, Driving Volumes to Low (Bloomberg)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.zerohedge.com/news/2016-08-24/gold-standard-comes-after-war-not-macquarie-warns-private-sector-will-never-recover">Gold Standard "Comes After War, Not Before" - Macquarie (Zerohedge)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.telegraph.co.uk/business/2016/08/24/french-support-for-the-eu-project-is-crumbling-on-the-left-and-r/">French support for the EU project is crumbling on the Left and Right (Telegraph)</a></strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><a href="http://uk.businessinsider.com/olympic-medal-biting-tradition-debunked-gold-coin-counterfeit-test-2016-8"><strong>Why Athletes Bite Their Gold Medals? (Business Insider)</strong></a></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><a href="http://info.goldcore.com/7-real-risks-to-your-gold-ownership" rel="attachment wp-att-5047"><img src="http://www.goldcore.com/news/wp-content/uploads/sites/16/2016/03/7RealRisksBlogBanner.jpg" alt="7RealRisksBlogBanner" width="822" height="430" style="height: auto; max-width: 100%;" class="alignnone wp-image-5047" /></a><br /><strong>Gold Prices (LBMA AM)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">26Aug: USD 1,324.90, GBP 1,002.95 &amp; EUR 1,173.33 per ounce<br />25Aug: USD 1,324.50, GBP 1,001.06 &amp; EUR 1,172.98 per ounce<br />24Aug: USD 1,337.30, GBP 1,010.73 &amp; EUR 1,185.38 per ounce<br />23Aug: USD 1,338.50, GBP 1,015.25 &amp; EUR 1,181.09 per ounce<br />22Aug: USD 1,334.30, GBP 1,018.20 &amp; EUR 1,181.26 per ounce<br />19Aug: USD 1,346.85, GBP 1,026.30 &amp; EUR 1,189.67 per ounce<br />18Aug: USD 1,347.10, GBP 1,023.93 &amp; EUR 1,190.84 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong>Silver Prices (LBMA)</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;">26Aug: USD 18.67, GBP 14.15 &amp; EUR 16.54 per ounce<br />25Aug: USD 18.50, GBP 14.02 &amp; EUR 16.39 per ounce<br />24Aug: USD 18.84, GBP 14.23 &amp; EUR 16.70 per ounce<br />23Aug: USD 18.98, GBP 14.40 &amp; EUR 16.75 per ounce<br />22Aug: USD 18.91, GBP 14.45 &amp; EUR 16.74 per ounce<br />19Aug: USD 19.42, GBP 14.80 &amp; EUR 17.14 per ounce<br />18Aug: USD 19.78, GBP 15.04 &amp; EUR 17.47 per ounce</p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><br />Recent Market Updates</strong></p> <p style="color: #333333; font-family: Georgia, &quot;Times New Roman&quot;, &quot;Bitstream Charter&quot;, Times, serif; font-size: 16px; line-height: 24px;"><strong><a href="http://www.goldcore.com/us/gold-blog/gold-futures-see-massive-1-5-billion-non-profit-liquidation-one-minute/">-&nbsp;Gold Futures See Massive $1.5 Billion “Non Profit” Liquidation In “One Minute”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/jim-grant-gold/">-&nbsp;Jim Grant Is “Very Bullish On Gold”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/germans-warned-stockpile-cash-case-war/">-&nbsp;Germans Warned To ‘Stockpile’ Cash In Case Of ‘War’</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/irelands-biggest-bank-charging-depositors-negative-interest-rate-madness/">-&nbsp;Ireland’s Biggest Bank Charging Depositors – Negative Interest Rate Madness</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/rothchilds-buying-gold-greatest-experiment-money-history-world/">-&nbsp;Rothchilds Buying Gold On “Greatest Experiment” With Money In “History of the World”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-mother-bull-markets-just-begun-grandich/">-&nbsp;Gold – “Mother of All Bull Markets Has Only Just Begun” – Grandich</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/45th-anniversary-nixon-ending-gold-standard/">-&nbsp;45th Anniversary Of Nixon Ending The Gold Standard</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-uk-pounds-near-post-brexit-highs-sterling-falls-38-year-date/">-&nbsp;Gold In UK Pounds Collapses 38% Versus Gold and 56% Versus Silver Year To Date</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/deposit-bailin-and-property-crash-warnings-in-ireland/">-&nbsp;Will Ireland Be First Country In World To See Bail-in Regime?</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/money-madness-negative-interest-rates-sees-gold-buying-surge/">-&nbsp;Money "Madness" Negative Interest Rates Sees Gold Buying Surge</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/gold-investment-demand-reaches-record-first-half-2016-perfect-storm/">-&nbsp;Gold Investment Demand Reaches Record In First Half 2016 On “Perfect Storm”</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/peak-gold-did-gold-production-peak/">-&nbsp;Peak Gold – Did Gold Production Peak in 2015?</a></strong><br /><strong><a href="http://www.goldcore.com/us/gold-blog/financial-times-victory-gold-bulls-just-beginning/">-&nbsp;Financial Times: “Victory For Gold Bulls Is Only Just Beginning”</a></strong></p> http://www.zerohedge.com/news/2016-08-26/buy-golds-august-dip-golds-monthly-sweet-spot-september-chaotic-election-looms#comments Bear Market China India Ireland Janet Yellen Jim Grant None Volatility Fri, 26 Aug 2016 11:47:18 +0000 GoldCore 570667 at http://www.zerohedge.com Frontrunning: August 26 http://www.zerohedge.com/news/2016-08-26/frontrunning-august-26 <ul> <li>Global equities set 2-week low before Yellen speech, dollar dips (<a href="http://www.reuters.com/article/us-global-markets-idUSKCN11101N">BBG</a>)</li> <li>Lochte signs new endorsement deal, legal woes persist in Brazil (<a href="http://www.reuters.com/article/us-olympics-rio-lochte-endorsement-idUSKCN1102HY">Reuters</a>)</li> <li>Blackstone Unleashes Cash Hoard in Texas Shale Oil Land Grab (<a href="http://www.bloomberg.com/news/articles/2016-08-25/blackstone-unleashes-cash-hoard-in-texas-shale-oil-land-grab">BBG</a>)</li> <li>China to prosecute former statistics bureau chief for corruption (<a href="http://www.reuters.com/article/us-china-corruption-statistics-idUSKCN11112X">Reuters</a>)</li> <li>Turkey fires on U.S.-backed Kurdish militia in Syria offensive (<a href="http://www.reuters.com/article/us-mideast-crisis-syria-turkey-idUSKCN10Z07J?il=0">Reuters</a>)</li> <li>U.S.-Backed Groups at Odds in Syria (<a href="http://www.wsj.com/articles/u-s-backed-groups-at-odds-in-syria-1472072691">WSJ</a>)</li> <li>EU Hopes Helping Workers Will Blunt Populism (<a href="http://www.wsj.com/articles/eu-hopes-helping-workers-will-blunt-populism-1472157500">WSJ</a>)</li> <li>Suicide truck bomb blamed on PKK kills 11 police in Turkey (<a href="http://www.reuters.com/article/us-turkey-blast-southeast-idUSKCN1110BO">Reuters</a>)</li> <li>Lotte vice chairman found dead amid probe; suicide suspected (<a href="http://www.reuters.com/article/us-lottegroup-executive-idUSKCN11102Z">Reuters</a>)</li> <li>Donald Trump’s Mixed Signals on Immigration Roil Campaign (<a href="http://on.wsj.com/2bEaJea">WSJ</a>)</li> <li>Judge orders search of new Clinton emails for release by September 13 (<a href="http://www.reuters.com/article/us-usa-election-clinton-emails-idUSKCN1102JY">Reuters</a>)</li> <li>Facebook ‘likes’ illustrate the personal differences between Republicans and Democrats (<a href="http://graphics.wsj.com/elections/2016/facebook-likes/">WSJ</a>)</li> <li>Millions From Maxed-Out Clinton Donors Flowed Through Loophole (<a href="http://www.bloomberg.com/politics/graphics/2016-dnc-contributions/">BBG</a>)</li> <li>Ramos call for media bias against Trump unethical, compromising (<a href="http://thehill.com/blogs/pundits-blog/media/292576-ramos-call-for-media-bias-against-trump-unethical-compromising">Hill</a>)</li> <li>Russia backs 48-hour Aleppo truce, U.N. wants other sides to commit (<a href="http://www.reuters.com/article/us-mideast-crisis-syria-aleppo-idUSKCN1101A7">Reuters</a>)</li> <li>Thought Volcker Rule Went Too Far? There’s More Coming for Banks (<a href="http://www.bloomberg.com/news/articles/2016-08-26/thought-volcker-rule-went-too-far-there-s-more-coming-for-banks">BBG</a>)</li> <li>Why Citron Case Leaves Hong Kong Investors Squeezed (<a href="http://www.wsj.com/articles/why-citron-case-leaves-hong-kong-investors-squeezed-1472209465">WSJ</a>)</li> <li>AB InBev expects to cut three percent of jobs after SABMiller takeover (<a href="http://www.reuters.com/article/us-sabmiller-m-a-abinbev-jobs-idUSKCN1110YS">Reuters</a>)</li> </ul> <p>&nbsp;</p> <p><strong>Overnight Media Digest</strong></p> <p><em><span style="text-decoration: underline;">WSJ</span></em></p> <p>- Donald Trump's mixed signals about easing his plan to deport all illegal immigrants are dividing his closest allies and prompting warnings he could lose core supporters if he abandons the signature issue of his campaign. <a href="http://on.wsj.com/2bEaJea" title="http://on.wsj.com/2bEaJea">http://on.wsj.com/2bEaJea</a></p> <p>- Blackstone Group said Thursday that it has agreed to invest $1.5 billion in a pair of drilling deals in West Texas. One came about after the New York investment firm early this year lost out to a big oil company bidding on about 12,000 acres south of New Mexico. <a href="http://on.wsj.com/2bLpCxc" title="http://on.wsj.com/2bLpCxc">http://on.wsj.com/2bLpCxc</a></p> <p>- Growth in overall health-care spending is slowing, but middle-class families' share of the tab is getting larger, squeezing households already feeling stretched financially. Overall, health-care spending across the economy reached 18.2 percent of gross domestic product as of June, up from 13.3 percent in 2000, according to Altarum Institute, a health research group. <a href="http://on.wsj.com/2bjY70H" title="http://on.wsj.com/2bjY70H">http://on.wsj.com/2bjY70H</a></p> <p>- Most of Volkswagen AG's diesel-powered vehicles on U.S. roads can't be retrofitted to fully comply with air-pollution regulations, though its larger vehicles likely can, an attorney for the company said on Thursday. The company is close to offering regulators a fix for the larger vehicles. <a href="http://on.wsj.com/2bDbgwP" title="http://on.wsj.com/2bDbgwP">http://on.wsj.com/2bDbgwP</a></p> <p>- Presidential contenders Hillary Clinton and Donald Trump delivered searing indictments of one another, trading charges of racism and corruption, and setting the tone for a bitter fight until the November election. <a href="http://on.wsj.com/2bR4FzN" title="http://on.wsj.com/2bR4FzN">http://on.wsj.com/2bR4FzN</a></p> <p>- The messaging service WhatsApp will start sharing phone numbers and other user data with Facebook Inc, a moneymaking strategy that strays from its promise that little would change when the app was acquired by the social network in 2014. <a href="http://on.wsj.com/2blz47q" title="http://on.wsj.com/2blz47q">http://on.wsj.com/2blz47q</a></p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">FT</span></em></p> <p>Apple Inc has agreed a deal with BT Group's EE to offer customers of the mobile phone network a six-month free subscription to Apple Music.</p> <p>The European Commission is finalising a radical copyright reform that with give European news publishers the right to levy fees on internet platforms, such as Google, if search engines show snippets of the publishers' stories.</p> <p>The U.S. court handling the Volkswagen AG diesel emissions scandal ordered the German carmaker on Thursday to move quickly to decide whether to fix or buy back 85,000 3.0 liter luxury vehicles with polluting engines which VW has said it can fix without any affect on their performance.</p> <p>Vivendi SA said it would implement a 300 million euro ($338.58 million) cost-cutting plan to stem losses from the French channels of its pay-TV unit Canal Plus. The goal is to reach breakeven in 2018 for Canal Plus channels in France, it added. </p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">NYT</span></em></p> <p>- U.S. President Obama on Thursday nominated Jim Yong Kim for a second five-year term as president of the World Bank despite persistent complaints among employees about his leadership at a time when the mission of the global development institution is in question. <a href="http://nyti.ms/2bRIt8H" title="http://nyti.ms/2bRIt8H">http://nyti.ms/2bRIt8H</a></p> <p>- Responding to a growing furor from consumers and politicians, the pharmaceutical company Mylan said it would lower the out-of-pocket costs to some patients who need EpiPens, which are used to treat life-threatening allergy attacks. <a href="http://nyti.ms/2bRHSE5" title="http://nyti.ms/2bRHSE5">http://nyti.ms/2bRHSE5</a></p> <p>- Uber recorded losses of roughly $1.2 billion in the first half of 2016, according to a person briefed on the company's financial data, who spoke on the condition of anonymity. <a href="http://nyti.ms/2bRIgT8" title="http://nyti.ms/2bRIgT8">http://nyti.ms/2bRIgT8</a></p> <p>- Apple Inc released a patched version of its mobile software to fix a dangerous security hole in iPhones and iPads after researchers discovered that a prominent United Arab Emirates dissident's phone had been targeted with a previously unknown method of hacking. Users can get the patch through a normal software update. <a href="http://nyti.ms/2bRIbPi" title="http://nyti.ms/2bRIbPi">http://nyti.ms/2bRIbPi</a> </p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">Canada</span></em></p> <p>THE GLOBE AND MAIL</p> <p>** A takeover proposal to rescue debt-hobbled Twin Butte Energy Ltd is in jeopardy as debt holders angry over the prospect of a major markdown in the value of their securities pledge to reject the deal. (<a href="http://bit.ly/2bSk3Mf" title="http://bit.ly/2bSk3Mf">http://bit.ly/2bSk3Mf</a>)</p> <p>** As the Liberals prepare to launch their signature anti-terrorism initiative, they have closed the door on a previous one by the Conservative government called Kanishka Project. (<a href="http://bit.ly/2bSlGd8" title="http://bit.ly/2bSlGd8">http://bit.ly/2bSlGd8</a>)</p> <p>NATIONAL POST</p> <p>** General Electric Co is set to break ground Friday on a new factory in Welland, Ontario, that will employ 220 people with the possibility of significant expansion. (<a href="http://bit.ly/2bSlQ3X" title="http://bit.ly/2bSlQ3X">http://bit.ly/2bSlQ3X</a>)</p> <p>** Rick Peterson, a Vancouver-based financial services executive, is mulling a bid to lead the Conservative Party of Canada and plans to enter the race in late September. (<a href="http://bit.ly/2bSmPRS" title="http://bit.ly/2bSmPRS">http://bit.ly/2bSmPRS</a>) </p> <p>&nbsp;</p> <p><em><span style="text-decoration: underline;">Britain</span></em></p> <p>The Times</p> <p>** Japan's largest airline, All Nippon Airways, said that it has been forced to cancel up to 300 flights over the next month while it investigates a problem with the Rolls-Royce Holdings Plc engines in its fleet of Boeing Co 787 Dreamliners. <a href="http://bit.ly/2bEML6Y" title="http://bit.ly/2bEML6Y">http://bit.ly/2bEML6Y</a></p> <p>** One of the City's most influential investor groups, whose members manage 14 trillion pounds ($18.47 trillion) of assets, has called on Sports Direct to reform fundamentally its corporate governance as shareholder pressure mounts on Mike Ashley's sportswear group. <a href="http://bit.ly/2bENuVK" title="http://bit.ly/2bENuVK">http://bit.ly/2bENuVK</a></p> <p>The Guardian</p> <p>** UberEats riders will demonstrate outside the group's London headquarters on Friday after the company cut the amount it pays per delivery, which some drivers say leaves them at risk of earning less than the minimum wage. They are calling on the company to pay the independently backed London living wage of 9.40 pounds ($12.40) an hour. <a href="http://bit.ly/2bENDbK" title="http://bit.ly/2bENDbK">http://bit.ly/2bENDbK</a></p> <p>** The government is to launch a tourism action plan including cutting red tape for bed-and-breakfasts and ready-made train tours as an increasing number of Britons take bank holiday breaks in the UK. <a href="http://bit.ly/2bEMxwN" title="http://bit.ly/2bEMxwN">http://bit.ly/2bEMxwN</a></p> <p>The Telegraph</p> <p>** BT Group's mobile arm, EE, has become the first British operator to bundle Apple Music with mobile contracts in a move to increase subscriber loyalty and help the iPhone maker's music streaming app challenge Spotify. <a href="http://bit.ly/2bEMZuH" title="http://bit.ly/2bEMZuH">http://bit.ly/2bEMZuH</a></p> <p>** News organisations in Europe will be given the right to charge internet giants such as Google to link to their content in a major shake-up of copyright reforms planned by Brussels. <a href="http://bit.ly/2bENW6r" title="http://bit.ly/2bENW6r">http://bit.ly/2bENW6r</a></p> <p>Sky News</p> <p>** Liberty Media Corp, backed by American media tycoon John Malone, is leading a 6.4 billion pound ($8.44 billion) battle for control of Formula One motor racing after proposing a deal that would see the sport's owner listed on New York's Nasdaq stock exchange. <a href="http://bit.ly/2bEOjOz" title="http://bit.ly/2bEOjOz">http://bit.ly/2bEOjOz</a></p> <p>** ITV has abandoned its 1 billion pound ($1.32 billion) attempt to take over Peppa Pig owner Entertainment One . The broadcaster said the two companies differed on price. <a href="http://bit.ly/2bEOtFB" title="http://bit.ly/2bEOtFB">http://bit.ly/2bEOtFB</a></p> <p>The Independent</p> <p>** British shoppers have shrugged off uncertainty caused by the UK's vote to leave the EU with retail sales growing at their best level in six months, pushed by the summer weather and foreign visitors lured by a weaker pound, according to a survey by the Confederation of British Industry (CBI).</p> <p>&nbsp;</p> http://www.zerohedge.com/news/2016-08-26/frontrunning-august-26#comments Apple Boeing Brazil China Corruption Donald Trump France General Electric Google Gross Domestic Product Hong Kong KIM Mexico NASDAQ President Obama Reuters Turkey Volkswagen World Bank Fri, 26 Aug 2016 11:34:28 +0000 Tyler Durden 570665 at http://www.zerohedge.com In Surprising Twist, Ackman Named As Potential Buyer Of Icahn Herbalife Stake http://www.zerohedge.com/news/2016-08-26/surprising-twist-ackman-named-potential-buyer-icahn-herbalife-stake <p>Having won the battle with Bill Ackman over the existential legality of Herbalife, which a month ago was found to not be a pyramid scheme after paying a $200 million fine and agreeing to make changes to its business, Carl Icahn, who owns 18% of the nutritional company, has found himself in a curious place: with no further upside catalysts and with the company levered to the neck with recent buyback-funding debt issues, there is litle upside left. In fact, the stock has been drifting lower ever since the settlement. Which is why, perhaps it is not surprising, that as <a href="http://www.wsj.com/articles/carl-icahn-mulled-selling-herbalife-stake-to-group-that-included-bill-ackman-1472198581">the WSJ reported </a>overnight, <strong>Icahn has been quietly shopping his stake in Herbalife to a group "including the company’s arch-nemesis William Ackman, another surprising twist in a battle between billionaires that has riveted Wall Street for years."</strong></p> <p>Citing "people familiar with the matter", WSJ notes that Jefferies has been seeking over the past month to find buyers for Mr. Icahn’s 18% stake, which is worth roughly $1 billion. The status of the talks and which other investors may be involved wasn’t clear and Mr. Icahn may sell nothing in the end.</p> <p><a href="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/icahn%20ackman.jpg"><img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/08/21/icahn%20ackman_0.jpg" width="500" height="333" /></a></p> <p>Ironically, a "novating" transaction between Icahn and Ackman would make sense: with the stock generating healthy cash flow, even if massively levered, it may stay in its current price range for a long time (even if it is, as we dubbed it several quarters ago, a "melting ice cube"), which provide little incentive for Icahn to keep holding to it as a long, especially since it is not an attractive acquisition target. On the other hand, Ackman continues to bleed theta on his blended $1 billion put position, with no imminent "terminal" catalysts on the horizon. As such, a deal between the two billionaires has long been rumored as a potential backdoor settlement in a market so illiquid, that either of the two trying to sell the stock in the open market would result in major stock price moves.</p> <p>As the WSJ notes, the fact that he even entertained selling his shares, by far the biggest single stake in Herbalife—and that Mr. Ackman could be a buyer—adds more drama to a tug of war over a once-obscure nutritional-products company that Mr. Ackman says is a pyramid scheme, an allegation it denies. The latest development is especially surprising given that just a month ago Mr. Icahn expressed renewed confidence in Herbalife, which in settling a closely watched Federal Trade Commission probe announced he was allowed to boost his stake to just below 35%.</p> <p>One factor which may explain Icahn's desire to offload his shares is his dramatically bearish bias to the overall market. As a reminder, as of June 30, his Icahn Enterprises was -149% net short, a position which has hurt the fund straddling it with a double digit YTD paper loss. WSJ adds that&nbsp; "Icahn has been selling several stocks this year amid his wariness of the overall market, even ones in which he has expressed confidence. In April, for instance, Mr. Icahn exited Apple Inc., which had been his biggest investment and whose shares he often predicted would rise dramatically. At the time, he said he continued to support the company’s management and believed it would flourish, but he had made a large profit."</p> <p>On the other hand, "that Mr. Ackman would consider buying, however briefly, into a company he has waged a crusade against is less surprising than it might seem. He had only signaled willingness to buy a small portion of the stake, one person said. He has long blamed Mr. Icahn for boosting the stock, saying it’s something he hadn’t bargained for when he plotted the campaign. “I would love to find a way to get Carl out of the stock,” Mr. Ackman said at CNBC’s Delivering Alpha conference in July 2014." </p> <p>Perhaps explaining the time-sensitive nature of Ackman's positioning is that his stake has been mostly built up using derivatives, and as such the longer the war over the final fate of Herbalife continues, the greater Ackman's losses. Ackman's carry is said to be between negative $50 and $100 million annually.&nbsp; In July, <a href="http://www.cnbc.com/2016/07/14/bill-ackman-on-herbalife-and-valeant-pharmaceuticals.html">CNBC reported </a>that "it has been three years and [Ackman] has lost hundreds of millions of dollars. He admitted in the Fortune piece that it as costing him more than 100 million a year in carrying cost." Ackman then suggested that the real number is about half that.</p> <p>In any case, whatever resolution there is, if any, will be a loss for everyone else, if only in purely theatrical terms. </p> <blockquote><div class="quote_start"> <div></div> </div> <div class="quote_end"> <div></div> </div> <p>Wall Street has often appeared more captivated by the thrill of watching two giants of investing go toe-to-toe than by the underlying issue of what qualifies as a pyramid scheme or a legitimate business.</p> </blockquote> <p>We expect that Icahn will come out with a statement defending his existing position (and likewise the same for Ackman) soon, perhaps even sooner if HLF opens substantially lower on the news. </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="959" height="639" alt="" src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/icahn%20ackman.jpg?1472209220" /> </div> </div> </div> http://www.zerohedge.com/news/2016-08-26/surprising-twist-ackman-named-potential-buyer-icahn-herbalife-stake#comments Apple Carl Icahn Fri, 26 Aug 2016 11:00:32 +0000 Tyler Durden 570663 at http://www.zerohedge.com