• Monetary Metals
    01/28/2015 - 00:28
    It’s terrifying how fast the whole Swiss yield curve sank under the waterline of zero. Now even the 15-year bond has negative interest. The franc has reached the end.

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The Greeks Have A Simple Message To Europe



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On The Prevalence Of Group Think in The Mainstream Financial Media

Today what we’ve come to know as “mainstream financial media” has provided nothing more than a vehicle for the exponential rise of group-think. All at the suffering of critical thought. In what seems like the blink of an eye most anything to do with financial insight whether it be the reporting of, as well as investigative analysis; has morphed into some version of a stylized regurgitation of Central banking dogma. (this also includes many of the so-called “experts” brought on to fortify the sermons).



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Obama's Fed Nominee, Who Was Busted And Quit For "Impropriety", Reports Up To $40 Million In Assets

Three weeks ago, when reporting on Obama's close personal friend and Bank of Hawaii "community banker" appointee to the Fed board, Allan Landon, we emphasized an apparently trivial data point that had somehow managed to slip through the background due diligence process. Namely, that about a decade ago, the same Landon stepped down as board member from the Seattle Federal Home Loan Bank after he was found to have "failed to comply with a rule requiring the disclosure of conflicts of interest by a director by failing to make disclosure to the Seattle Bank board of their institutions' planned redemptions." The full story can be read here, but in a nutshell a banker that the president himself has appointed to join the US money printing authority was on the cusp of being investigated for embezzlement, and was forced to quietly disappear into the night despite denying "any wrongdoing." Today we learn just how much assets the banker who at least once was caught with "borderlineembezzlement " made during his humble tenure as a "community banker." The number: somewhere between $10 and $40 million.



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Citi Warns "Central Banks' Grip On The World Economy Is Waning"

While central banks’ grip on the economy seems to be waning, notes Citi's Matt King, additional liquidity still seems as potent as ever when it comes to propping up global markets. The question in our minds revolves around whether central banks remain willing to keep pumping when the economic benefits are so questionable. Equally, though, valuations are already so elevated that we doubt they can afford to stop. One way or another, this feels like a recipe for increased volatility.



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"Greece Is Bear Stearns. Italy Is Lehman" - 7 Quick Points On Europe

In a fundamentals-driven market you need to look at fund flows; in a Narrative-driven market you need to look at Narrative flows. With Draghi’s announcement last Thursday, there is no longer a marginal provider of market-supportive monetary policy Narrative. Or to put this in game theoretic terms, the 2nd derivative of the Narrative of Central Bank Omnipotence just flipped negative. We’ve shifted from an accelerating Narrative flow to a decelerating Narrative flow, and that inflection point in profoundly important in game-playing. The long grey slide of the Entropic Ending begins.



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Chairman Of Joint Chiefs Honors Dead Saudi King With Essay Competition - Here's Our Entry

Chairman of the Joint Chiefs, General Martin Dempsey has, according to Politico, asked The National Defense University to establish an essay and research competition focused on the Middle East in honor of Saudi Arabia’s late King Abdullah. How very generous for America's top uniformed military leader to recognize such a leader of another nation... Though no details of the prize are available, we thought we would take a stab (figuratively) at an essay...



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When Hope Triumphs Over Reason: Energy Sector Stocks Most Expensive Since 2002

With earnings tumbling and outlooks collapsing for energy sector names in the US (and worldwide for that matter) there is only one way to keep the "wealth creating" dream alive in stocks... the magic of multiple expansion (or hope over reality). As Factset points out in its latest report, this week marked the first time the forward 12-month P/E for the Energy sector has been equal to (or above) 22.4 since April 8, 2002. What is perhaps even more compellingly mind-numbing is, if analysts were not still projecting record-level earnings over three of the next four quarters (including the downward estimate revisions in the Energy sector), the forward 12-month P/E ratio would be even higher.



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Seven Decades Of Data Prove This Is A Really Dumb Idea... (But They'll Do It Anyway)

It's a common story throughout human history. There’s almost always an elite, or government, with a ‘scarcity’ mentality that believes in the zero sum game, i.e. for anyone to be a winner, someone else has to be a loser. When they’re short of cash, governments almost invariably raise taxes. Of course, the numbers show that raising taxes rarely affects total tax revenue. There’s a very looooong history which clearly establishes this point. And you’d think that a government would look at the data and recognize the obvious truth: their scarcity mentality doesn’t work. But no. Sadly, in the face of such overwhelming data, the Obama administration is now pushing to raise tax rates once again...



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UTC Just Missed And Cut Guidance... And Why This Is Great News For Its Shareholders

Moments ago yet another industrial bellwether company, United Technologies, which is at the nexus of the building and aerospace industries, reported Q4 EPS and revenues, which missed, but worse, cut 2015 EPS guidance from $7.00 - $7.25 to $6.85-$7.05, blaming FX headwinds. Well, yeah, it's always something. And that something is why 2015 EPS on not only a GAAP but increasingly non-GAAP basis will be lower in 2015 than in 2014. However, while the guide-down means that UTC will soon join the seemingly endless parade of (mostly energy) companies that have laid off employees, there is great news for shareholders. Because even as the company see less growth opportunities and can barely keep up with Wall Street expectations, it has found a great way to reward those who buy its stock: by buying it right back from them.



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The Template Of Life In America Has Broken

The more detached from reality American culture becomes the more strictly ceremonial leadership gets, as illustrated by the raft of bromides Barack Obama floated past the assembled vassalage of government last week in another grand effort to avoid the necessities of the moment. Those necessities include freeing a hostage public from the tyrannical clutches of corporate despotism — the evil empire of big boxes, big burgers, big pharma, Big Brother — and the atrocious rackets fostered by them that masquerade as an economy. The template of the life we have known is broken and the pieces within are flying apart, and no amount of wishing or promising can keep them going. If this society is even going to survive, the people have to smash their way out of this template prison, probably against the efforts of the people and organizations now running it merely for their own benefit.



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Lazy Greeks At Fault?? These Two Charts Suggest Otherwise!

Well things are gonna change in Europe.  Greece just voted in a majority no bullshit government. But what is it that needs to get done in Greece?  That’s really the $64K question.  On the surface it seems as though Greece is simply a bunch of lazy sponges.  But we caution you to look at the facts before making a final judgement.  Remember Greece was once upon a time the genesis of democracy.  These people have been doing democracy longer than any other nation on earth.  And so we have a hard time accepting all of sudden after thousands of years they simply got too lazy to carry on the pride of the people who created the concept of a self-governed and free populace.  We just don’t buy it.  Let’s look deeper...



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Russia Slams S&P Downgrade For "Excessive Pessimism"

Well that didn't take long. Russian Finance Minister Siluanov has responded to S&P's "junk" downgrade of The Russian Federation:

  • *SILUANOV: S&P DOWNGRADE OF RUSSIA SHOWS 'EXCESSIVE PESSIMISM'
  • *SILUANOV: NO REASON TO EXPECT `MASS' DEBT REDEMPTION REQUESTS

Adding in his statement that he "sees no reason to dramatize" the situation, Siluanov adds that the cut should not have any serious effect on Russia's capital markets. We assume by "dramatize," he means - they wil not be 'visiting' the local ratings agencies offices for a chat anytime soon.



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"Buy The Dip" In Gold; BofAML Says EURUSD Bounces Should Be Sold

"Gold is consolidating before its larger bull trend resumes," notes BofAML's MacNeil Curry looking for a move to $1345 and beyond. But it is today's modest bounce in EURUSD that they believe should be sold, and "seen as temporary and corrective of the larger bear trend."



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US Busts Alleged Russian Spy Ring In Manhattan

Federal prosecutors in New York charged three men in an alleged Russian spy ring centered in Manhattan and the Bronx, according to a Jan. 23 complaint unsealed today by the office of Manhattan U.S. Attorney Preet Bharara. According to CNN's Shimon Prokupecz, Evgeny Buryakov, working with Igor Sporyshev and Victor Podobnyy, was trying to recruit NYC residents as intelligence sources for the Russian Federation.

 



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