'... assuming equity prices rise by 10% this year, for their bond allocation to stay at 37% (same as of Q3 2014), US pension funds and insurance companies would have to buy $550bn of bonds in 2015."
The problem is inherent in the knowing “that it will end badly” and yet turning a blind eye and making money anyway. For that’s what a good Wall Street aficionado does after all, right? I mean, who cares about arguing about real economics or fundamentals. Who cares – I’m up 8%!! As if that’s all that now matters. For if that’s all that matters why don’t we embrace crony capitalism, embrace stagnant wages, embrace the 99% vs the 1% as that’s the best it’ll ever be. Who cares, as long as we’re getting ours. This disgusting bloated behemoth of an adulterated Central Bank infused market is now getting downright scarier.
Arctic Polar Blast Coming: Midwest Temperatures To Plunge 35 Below Average, Chicago Facing Record LowsSubmitted by Tyler Durden on 01/04/2015 12:42 -0400
Following several weeks of economic data that has been, despite erroneous expectations of a Fed rate hike, one major disappointment after another including regional Fed reports, housing data, manufacturing surveys, construction spending, and durable goods data, the US economy is about to get the slowdown scapegoat it so desperately needs: according to Weather.com, following a brief overnight respite from cold temperatures, entering the first full week of January, both the Midwest and the East will see a plunge to the coldest temperatures of the season. As a result, high temperatures are expected to be up to 35 degrees below average in parts of the Midwest by midweek. Chicago may see a subzero high temperature on Wednesday. The last time the mercury did not reach zero was on January 6 of last year. Chicago may also set a daily record cold high temperature on Wednesday (current record is 3 degrees set just last year) and a record low temperature on Thursday morning (current record is 10 degrees below zero).
Those outside Greece could not understand why any responsible politician would sign on the dotted line when they couldn’t deliver and our credibility suffered. The cost ultimately fell on those who were unable to shield themselves from amendments passed on the sly, directives that only the most savvy could possibly understand; in short, it fell on the taxpayers, who were bled dry. It’s time for citizens and the media to grow up. To pressure politicians for the truth and not to ostracize those who dare to tell it like it is. If we opt for comforting rhetoric, knowing how phony it is, we will be digging our own graves.
Today, concerned that Tsipras' ascent to power will mean precisely that, namely more "blackmail" by Greece of Germany and the Eurozone, as a Grexit opens the way for a collapse of the monetary union and a return to the DEM which would cost Germany far more than continuing the annual charade of keeping Greece in the Euro, Spiegel is out with another piece saying "Bundesregierung hält Ausscheiden Griechenlands aus dem Euro für verkraftbar", or loosely translated, the Federal Government considers Greece's exit from the euro manageable. Why is this coming out today? Because moments ago, Tsipras made it quite clear just what he will demand once he gets the power: "Germany had most of nominal value of debt written off in 1953, same should be done for Greece in 2015", adding that Greece wants writedown on nominal value of Greek debt. And so the gloves come off, and the real bluffing begins.
It’s high time for a new model and for new people. But the old ones, and their utterly and dramatically failed economies, hold the power, the media, the money, everything. So what other way out is there but mass fighting, mass casualties, a complete overthrow of everything that exists today, probably nuclear bombs dropping, and in the end a world none of us would recognize, let alone be able to survive in? It’ll take a while yet to get there, and it won’t be a pretty while by any stretch of the imagination. The powers that be are not done yet pretending to rule the universe and playing God. We should kick ‘em all out today, but we won’t. Because we’re all too much like them.
Despite the anecdotal evidence plastered daily on financial media channels of a scruffy, young, upstart working from his parents' basement and creating the next great social, mobile, analytics, cloud app worth a cajillion dollars, from nothing but tween eyeballs, the sad reality is the 'American Dream' for young Americans is over. As The WSJ reports, the share of people under age 30 who own private businesses has reached a 24-year-low, according to new data reflecting a generation struggling to find a spot in the workforce. While there are numerous possible reasons, one professors worries about the systemic aspect as "the fear of failure is the measure we should be most concerned about."
Having totally and utterly failed in 2014, the consensus for 2015 is once again higher rates (well they can't go any lower right?) with year-end 2015 expectations of 3.006% currently (having already plunged from over 3.65% in July). However, at the other end of the spectrum, DoubleLine's Jeff Gundlach told Barron's this weekend, the 10-yr Treasury yield may test the 2012 low of 1.38% as the Fed’s short-term rate increase is poised to trigger "surprising flattening" of yield curve.
In the wake of widespread protests against police brutality and discrimination, law enforcement departments across the country are instituting new rules and policies to ensure safer practices. Here are some of the ways departments are reforming their training, tactics, and management in light of scrutiny...
What "wall of worry"? Goldman Sachs S&P 500 Sentiment Indicator has reached 11 on the Spinal Tap amplifier of euphoric positioning...
"Catch and Release..."
The economic "recovery" has been harsh, especially for the former hedge fund manager of Paron Capital Management, James Crombie and his family of 4 including. So, as a result Crombie decided to continue living the good life: he did so by squatting in someone else's Maryland house listed in May 2014 for over $1 million.
For just the 5th time since 1950, the S&P 500 dropped at least 1% on the last trading day of the year... and then continued that weakness on the first day of the current trading year. So what happened next?
It is with great regret we inform our readers that, following 14 consecutive days of updates (by the Associated Press no less) and others regarding Barack Obama's daily activities during his Hawaiian vacation including his exercise, swimming, executive order and golfing regiment, today is the last such day of can't miss headlines surrounding the Glorious Free World Leader's time away from reading from the TOTUS. So what to expect next? Here is the answer.
The author of what Paul Krugman called "the most important economics book of the year - and maybe the decade," has turned down a prestigious award from the French government because, he does "not think it is the government's role to decide who is honorable." The irony of Thomas Piketty's revulsion at the Legion d'Honneur award is juxtaposed with his socialist epithets that government should decide everything else... like confiscatory taxes, big government, and, as Mish perfectly describes it, the "save the local bookstore mentality." Even more ironic though, Piketty's rejection of the award occurred on the same day that Hollande finbally gave up on his 75% supertax scheme (which has led to record unemployment).