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World's Largest Leveraged ETF Halts Orders, Citing "Liquidity Constraints"
First The Bank of Japan destroyed the Japanese bond market, and then, back in May we warned that The Bank of Japan had 'broken' the stock market. Now, it appears the all too obvious consequences of being the sole provider of buying power in an antirely false market are coming home to roost as Nomura reports the "temporary suspension" of new orders for 3 leveraged ETFs - the largest in the world - citing "liquidity of the underlying Nikkei 225 futures market."
As Bloomberg reported previously on Nomura's funds,
Money is being shredded at an unprecedented rate in a souped-up exchange-traded fund tied to Japan’s most famous stock index.
Since mid-August, investors have poured a record $4.5 billion into the Next Funds Nikkei 225 Leveraged Index ETF, a security designed to rise or fall twice as fast as its namesake equity gauge. That’s too bad, considering that twice the Nikkei 225 Stock Average’s loss over that period comes out to about 21 percent.
So fast have the country’s individual investors been plowing money into the fund that even as a fifth was lopped off its price, its market value more than doubled. It’s the largest security of its kind in the world, and is now big enough to affect the whole stock market as overseers rush to buy and sell securities to meet its price target, according to BNP Paribas Investment Partners Ltd.
“They are taking up a larger proportion of the market,” said Tony Glover, head of the investment management department at BNP Paribas Investment Partners Japan in Tokyo. “Volatile markets are not great news with increasingly wider intraday swings. The funds are a big factor causing this.”
The ETF has become more popular with traders than even Toyota Motor Corp., Japan’s biggest company. Average turnover for the ETF was about 250 billion yen ($2.1 billion) a day over the past two months, triple that of Toyota.
* * *
Who could have seen this coming? Well we did... numerous times...and here is the explanation...
Two months ago, in “ETF Issuers Quietly Prepare For Meltdown With Billions In Emergency Liquidity,” we outlined the rather disconcerting circumstances that have led some large fund managers to quietly line up emergency liquidity facilities that can be tapped in the event of a sudden retail exodus from bond funds.
"The biggest providers of exchange-traded funds, which have been funneling billions of investor dollars into some little-traded corners of the bond market, are bolstering bank credit lines for cash to tap in the event of a market meltdown. Vanguard Group, Guggenheim Investments and First Trust are among U.S. fund companies that have lined up new bank guarantees or expanded ones they already had, recent company filings show," Reuters reported at the time, in a story we suspect did not get the attention it deserved.
At a base level, these precautionary measures are the result of the interplay between central bank policy and the unintended consequences of the post-crisis regulatory regime. ZIRP creates a hunt a for yield and simultaneously incentivizes companies (especially cash strapped companies) to tap the bond market while borrowing costs remain artificially suppressed. Clearly, this is a self-fulfilling prophecy. The longer rates on risk free assets remain near, at, or even below zero, the more demand there is for new corporate issuance (the rationale being that at least corporate credit offers some semblance of yield). More demand means rates on corporate credit are driven still lower, and once yields on high grade issues get close to the lower limit, yield-starved investors are then herded into HY.
All of this supply in the primary market comes at a time when liquidity in the secondary market for corporate credit is non-existent thanks to the shrinking dealer books that resulted from the government’s (maybe) well-meaning attempt to crack down on prop trading. The result: a crowded theatre with a tiny exit.
This situation has been exacerbated by the proliferation of bond ETFs which have allowed retail investors to pile into corners of the fixed income world where they might not belong.
All of the above can be summarized as follows.
"MF assets too large versus dealer inventories" (via Citi)...
... clear evidence of "structural damage in corporate bond trading liquidity" (via JP Morgan)...
... and the rapid growth of bond funds in the post-crisis world (via BIS)...
So given the above, the question is this: if something were to spook the market - a rate hike cycle for instance, or an October revolver raid on HY energy names, or an exogenous geopolitical shock - causing an exodus from these funds, what would happen to prices if fund managers were suddenly forced to transact in size in an illiquid secondary market in order to meet redemptions?
"Nothing good", is the answer.
The solution is to avoid selling the underlying bonds - even when investors are selling their shares in the funds.
But how is this possible?
To a certain extent, outflows in one fund can be offset by inflows to another. These "diversifiable flows" are one happy byproduct of the great ETF proliferation. Here's a refresher on how this works courtesy of Barclays.
* * *
Portfolio Products Replace Dealer Inventory
While diversifiable flows limit the risks to portfolio managers in principle, the reality of the high yield market is more complicated. Managers have specific views on tenor, callability, sectors, covenants, and, most importantly, individual credits, such that actually finding buyers for specific bonds can be quite difficult. In the pre-crisis period, dealers ran large inventories that effectively facilitated the netting of flows across funds (Figure 1). A fund with an outflow would sell bonds into the dealer community, and funds with outflows would buy bonds out of the dealer inventory. When inventory is large, the fact that the specific bonds bought and sold did not match was largely irrelevant. Funds with outflows could sell the bonds of their choice, and the funds with inflows could pick investments from the large variety of inventory held by dealers.
The matching problem has become more acute as dealer inventories have declined. Even funds can net flows in principle, dealers are much less willing to warehouse bonds, and are much more likely to buy only when they believe they can quickly offload the risk. Under this scenario, the fact that flows can theoretically be netted is of little practical use to fund managers – actually netting individual bonds is extremely difficult, particularly in the short time frame required by funds offering daily liquidity to end investors.
This is where portfolio products come in. Investors can use portfolio products to fund outflows/invest inflows immediately and execute the necessary single-name bond trades over time as liquidity in the underlying bond market allows (Figure 2). In this scenario, funds with inflows and outflows simply exchange portfolio products, sidestepping the immediate need to trade single-name corporate bonds.
* * *
Ok great, so ETFs provide a kind of "phantom" liquidity if you will. There are two problems with this:
- It only works when flows are diversifiable. Once flows become unidirectional, it all goes out the window.
- It makes the underlying markets even more illiquid.
Here's how we put it last month in "How Fund Managers Use ETF Phantom Liquidity To Avert A Meltdown"
In other words, if I'm a fund manager, the idea that ETFs provide liquidity rests on the assumption that when I experience outflows, someone else will be experiencing inflows and thus I can sell ETFs and avoid offloading my bonds into an illiquid corporate credit market. Put another way: I am depending on new money coming into the market to fund redemptions from previous investors who are exiting the market, all so that I can avoid liquidating assets that are declining in value and that I believe will be difficult to sell. There's a term for that kind of business. It's called a ponzi scheme and just like all other ponzi schemes, when the new money dries up (so, for example, when HY bond ETF flows are all headed in the wrong direction), the only way to meet redemptions is to get what I can for the assets I have and when the market for those assets is thin (as the secondary market for corporate credit most certainly is), I may incur substantial losses.
Note also that the more often ETFs are used as a way of avoiding the underlying bond market, the more illiquid that market becomes, making the situation still more precarious in the event of a panic.
So what is a fund manager to do?
This is where we come full circle to the emergency liquidity lines mentioned at the outset. In order to avoid tapping the underlying illiquid bond market in a situation where flows are unidirectional, fund managers may instead pay out redemptions in borrowed cash.
This is, to quote Citi's Matt King, "creative destruction destroyed."
Only worse.
That is, this represents the willful delay of a long overdue episode of creative destruction layered atop another delay of the much needed Schumpeterian endgame. Stripping out the metaphysics and philosophy references, that can be translated as follows: this strategy is yet another example of delaying the inevitable. If fund managers are forced to tap these liquidity lines it likely means investors have found a reason to sell en masse and if that reason turns out to be something that permanently impairs the value of the underlying bonds (as opposed to a transitory, irrational panic) then all the funds are doing by borrowing to meet redemptions is employing leverage to stave off the recognition of losses, which is ironically the same thing (in principle anyway) that the companies whose bonds they’re holding have done to stay in business. It’s a delay-and-pray scheme designed to avoid selling the debt of companies whose similar delay-and-pray schemes have run their course.
In closing, it's important to note that no fund manager in the world will be able to line up enough emergency liquidity protection to avoid tapping the corporate credit market in the event of panic selling in the increasingly crowded market for bond funds.
In other words, when the exodus comes, the illiquidity that's been chasing markets for the better part of seven years will finally catch up, and at that point, all bets are officially off.
* * *
At the end of the day, one is reminded of what Howard Marks' recently said about ETFs:
"[They] can't be more liquid than the underlying and we know the underlying can be quite illiquid."
We are about to get the real-life answer to Howard Marks' more critical question: "What happens when ETF Holders all sell at once?"
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Ummmmm..........ooops?
I'll be keeping an eye on the usdjpy tomorrow. Shaping up to be a carnage day. :)
Sell the inevitable! Bitchez!!!
"it all happens at once" kyle bass
Sum Ting Wong
Personally, I think leveraged ETFs should never have been allowed to exist in the first place (up or down). You wanna play on margin? Go get somebody to extend you a margin account. Otherwise, tough titties.
Ah, who cares. I mean, now that the BoJ owns the whole fucking Jap stock market, what are peons doing owning shares, anyhow?
See, this is the Completion of the Socialist Take Over of Capitalist Societies.
Buy up all the stocks and bonds in the name of Doing God's Work* and Presto, you Own the Whole World*
*I refer you to Matt Tiabbi's original articles quoting the PTB at GS. We are "Doing God's Work" and "We Own the World", the 2 quotes that started the veritable shit storm with Goldman and extended to the rest of the bankers and their political paid enablers.
Kudos, Matt.
And this also from Denver Dave at Investment Research Dynamics
Is Japan “Inc.” Pulling Out Of The Comex And LBMA?"One of Japan’s largest global precious metals trading companies, Mitsui Precious Metals, is closing down its operations in New York and London by the end of 2015. Note that it will maintain its operations in Tokyo and Hong Kong – interestingly: Mitsui Pulls Out Of NY, London.
Mitsui is one of the largest business groups in Japan and one of the largest corporations in the world. “When in doubt, pull out.” In my view, this move reinforces the growing global fear of the massive paper to physical gold/silver leverage embedded in the NY/London banking system.
Remember, we are able to assess only what might be available to back visibly traded paper gold and silver derivatives (Comex futures, LBMA forwards). And reported inventories are based on reports submitted by the bullion banks and Central Banks. Do any of us really trust these bank reports as reported without visual confirmation and independent audits?
In fact, I will go as far to say that any analyst in this sector who presents any analysis and commentary based on bank-generated gold/silver inventory reports that does not stipulate up front that any and all information is based on reports that may or may not be accurate is thereby presenting invalid analysis."
Physical Gold and Silver... Do you own it?
Leave the tomato plants out
Get the tomato plants in
maybe they are buying these leveraged etf's on margin.
Treasury officer: "Why do you want 1 million dollars worth of Nickels?"
Kyle Bass (knowing full well that the metal content in each nickel far exceeds 5 cents):
"I just Like Nickels"
People thinking of selling equities and turning their investments into fiat digits are just as afraid of holding too much fiat as they are holding equities, which have some brick/mortar/earning/revenue value. The Fed has created .....well....lots of problems.
There's only One True Safe Place and it's the First of the Five Elements of the Ninja ---- Gold.
When the SHTF, everything else will be torn to pieces.
That Ninja had better arm himself with a brass/lead combination as well as his gold. The other 4 elements had better be firearms, ammo, food, and whiskey. Hey, sounds like a Ninja I would want as a neighbor.
Will the financial planning career path exist after the reset?
"Will the financial planning career path exist after the reset?"
if you own an abacus, yes.
I agree. Big tremmor this is.
More to come I'm sure.
Poland’s stance towards Russia: pathetic, contemptible and plain stupidhttp://thesaker.is/polands-stance-towards-russia-pathetic-contemptible-and-plain-stupid/
Corzined, bitchez.
yet he still remains free and unencumbered......to be corizined takes on a double meaning these days
Uh oh...better smash gold/silver...NOW!
Nothing of value was produced in this insane movement of zeros and ones on hard drives.
There ain't no Sanity Clause!
… there ain’t no free lunch, neither!
Liquidity constraints? WTF? Central Banks have all the money anyone could desire!
And what about HFT providing "liquidity" to the markets? A leveraged ETF should be just fine!
Unless of course it's all a giant pyramid scheme to fuck over the average citizen and enrich the Elites and their Mandarins in .gov!
Oh, wait...
Ctrl-P Bitch
Got "Superbond"?
Puerto Rico, U.S. Treasury in talks for ‘superbond’
By Matt Wirz, Nick Timiraos, and Aaron KuriloffPublished: Oct 14, 2015 5:36 p.m. ET
Getty Images
People pose for a photo in front of Old San Juan, the center for Puerto Rican tourism/
Puerto Rico and U.S. officials are discussing the issuance of a “superbond” administered by the U.S. Treasury Department that would help restructure the commonwealth’s $72 billion of debt, people familiar with the plan said.
Under the plan, the Treasury would administer an account holding at least some of the island’s tax collections. Funds in the account would be used to pay holders of the superbond, which would be issued to existing Puerto Rico bondholders in exchange for outstanding debt at a negotiated ratio. Investors would receive less debt but would have higher expectations for getting repaid.
The proposal would mark an important change in Puerto Rico’s relationship with the U.S. government, which has resisted wading into the island’s debt morass. A superbond would need to clear high political hurdles in Washington and Puerto Rico to become a reality.
Talks between Puerto Rico’s representatives and Treasury officials are preliminary and any plan wouldn’t include financial aid or a U.S. guarantee of Puerto Rico debt, the people said. They said the proposed bond would be just one piece of a restructuring puzzle that the island’s government is trying to assemble, after admitting this year that it cannot pay its debt in full.
An expanded version of this story is available at WSJ.com
More from MarketWatchNice find.
'Super Bonds'
That's so fucked up.
It's just as ridiculous as the One Trillion Dollar coin.
Seriously out of whack and the global disaster these greedy morons are conjuring up will be Fugly.
More then ever as HH says, better be prepared cause the cataclysm seems near.
If you want a super bond you gotta show up in blue pajamas with a spray painted red S on your chest.
next up:super duper bonds, then super superior duper bonds to bail the super dupers that hold super bonds. tink i see a trend. greeced super bonds held by the fed to underwrite the suppers, all courtesy of the nwo/fed super duper prints of fiat dolla...
all this back by the mic with violence to ensure the plebs back it.
nothing a keystroke can't resolve.
and how long can it sustain?
as long as japan can create moar yen...
This place is Killin me.
'Bad news' (and I get it..this is why I come here)..but these 'end o the world ' articles. ..day in day out...
Nobody actually cares. The charts that woulda made rational sense in the 50s and 60s..just do NOT apply when the whole system is fake and controlled,yet tylers never mention that angle when 'this is the highest/lowest since lehman /great depression. .when the 'death cross of any given chart,'makes no sense since the rules/calculations have changed since then.
If you're gonna do the 'sky is falling bit,' you have to take ALL of it into consideration, And explain it ALL to the readers. Otherwise, you just look like the tinfoil hat/broken clock doom n gloomers like the rest of them.
Again..I hate to feel this but sometimes I get the vibe that this site just feeds off the fruitloops,sells the gold, and really doesn't give a snap but fo the dolla.
Damn shame..I learned a lot here.
B I N G O
"I survived the Supercycle Debt Sheitma Jubilee, and all I got was this lousy tee shirt!"
That'll be the last round of QE- everyone will get a T-Shirt that says-
(N) rounds of QE and all I got was this lousy T-Shirt.
Shit, I'm still waiting for my "University of Morder" hoodie.
I have a T-shirt that says "It's not my fault". That'll come in handly later, I'm sure. Well, maybe if it was made out of Kevlar it would come in handy.
full body jump type suit in orange, saying it was my fault cause i did nothing...
Keep your eye on the ball. This time really is different. We've had stock market crashes before, but this time it's bonds.......bonds are the foundation to this whole Ponzi Scheme, so it's going to take some time for the shitstorm to unfold. Expect multiple legs down as this Ponzi unfolds....we're talking years not days/months.
High Yield market has been foreshadowing much of what is coming (what is coming in equities that is, which are always lagging anyway) for some time. Next HY dive should be fun to watch.
I think you're dead-on with that comment. First ones to go are debt obligation from entities that don't own their own printing press. Then the ones from entities that do own their own printing press.
Did you miss "World's largest leveraged ETF" and "Japan"?
What popped the 2001-2008 bubble? Lehman. This bubble is twice the size, with rates the World over at ZIRP or NIRP.
Did you miss VW depth-mining it's brand for the sake of greed? The +$1 Trillion student loan bubble, the bad-credit auto loan bubble?
How about Russia deploying cruise missles for the first time and sending their only aircraft carrier to the Middle East to defend Syria? South China Sea?
What do you think is going to happen to housing prices, disposable income, assets, leveraged ETF's and other stawks when this house-of-cards tumbles down?
It's this or another tipping point that will send the dominoes falling, the cards collapsing, the Pyramid Ponzi crumbling to the ground.
That is why there is so much daily material here, because that is how large, how massive, how absofuckinglutely insane all of this is!
Guns+PMs+Guts
..... and lots of stored food+water
Right, its so scary, and on top of all that man-made CLIMATE CHANGE ...
I am also still waiting for the Armstong Armageddon, which was supposed to start at the beginning of this month ....
: You want a prediction about the weather, you're asking the wrong Phil. I'll give you a winter prediction: It's gonna be cold, it's gonna be grey, and it's gonna last you for the rest of your life
There is no way that this winter is *ever* going to end as long as this groundhog keeps seeing his shadow. I don't see any other way out. He's got to be stopped. And I have to stop him.
I like the Game of Thrones thought process.
Winter is coming.
Winter is here.
"The winter of the world's dis-CONTENT! It all goes.
Water water everywhere. Surrounded by water and nary a drop to drink...
"Sell it, sell it all..."
Swan song?
.still waiting for the bondholders of the banks to get assraped. Until that happens, it's all vaudeville.
JPY to nosedive of course. Time for Au be slammed in the a.m. The wheels are detaching as we speak and all that is cared about is Da Cubbbbbs and the gross number on the 401K.
The cartel will be out tonight in force naked shorting gold futures. I bet they try to dump 25-30 million ozs in 1 millisecond.
Frank: they tried to drunken-monkey-hammer PM's last night in the small hours as well, but those pesky PM's fought back with a strong rebound and a nice close to the day in the green. Could be interesting if the same happens again tonight with another reversal tomorrow...
If fund managers are forced to tap these liquidity lines it likely means investors have found a reason to sell en masse and if that reason turns out to be something that permanently impairs the value of the underlying bonds (as opposed to a transitory, irrational panic) then all the funds are doing by borrowing to meet redemptions is employing leverage to stave off the recognition of losses...
hell they learned that trick from the fed. no price discovery. just extend and pretend. there is no market, there is only the fed and the fed will own it all some day. all the bonds, all the stocks, every loser on the bank's books. probably all the etf inventory too.
But that won't fix the wage/employment carnage.
Stocks at all time highs while a loaf of bread is $19.99.
The last decade or two is just the event horizon. Seems like forever, until we're on the other side of it . . .
wtf did they do with the money!!!
Holding up the markets maybe. I believe things are happening behind the scenes.
Ken O'Keefe speaking at conference regarding global financial control held by small group with common dominator and goal. (Passionate and to the point)
https://www.youtube.com/watch?v=kukDOyZ3_2k (4 min)
can a tyler post this
https://www.reddit.com/r/SandersForPresident/comments/3oq86n/cnn_deleted...
this is when cnn bias comes to lib-town, the obvious case of propaganda
I’m not a Tyler, but…
jim @limjucas
CNN deleted their poll, which Sanders was leading by upwards of 80%. On site this morning. http://www.cnn.com/2015/10/14/politics/democratic-debate-2015-winners-losers/index.html …
Isaac Saul @Ike_Saul 4h4 hours ago
Look at these news outlets blatantly ignoring that the people in their own polls say @BernieSanders won the debate.
and much more… from the discerning unwashed masses. It's amazing at what lengths the media will go to.
THANKS.
+1 JR. I'm with you on this one.
http://m.eastbayexpress.com/SevenDays/archives/2015/10/14/wednesday-must...
"Look at these news outlets blatantly ignoring that the people in their own polls say @BernieSanders won the debate. "
Shouldn't "news" be in quotes?
I can't wait for this motherfucker to just snap!
Aren't ponzi schemes just beautiful!
Didn't they say something liquidity and melting at Fukashima
Here are some signs of a coming recession.
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
http://michaelekelley.com/2015/09/27/vix-predicts-pits-while-pundits-have-fits/
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
Wei tu lo
As I noted earlier, black Swans everywhere..
The day all the chickens came home to roost, all the chickens, all at the same time.... You know, like synchronized and shit.
Damn, next up..... the Most Haulted List.
I'm long beans rice and squirrel traps.
Speaking of trapping squirrels, Hey, where has Meat Trapper been these days ?
Save yourself.
Stack On
The BOJ has been the largest investor in the Nikkei for awhile. Can you say Central Bank market manipulation? For an added bonus, u can include the multi trillion $ disaster at the Fukushima Daiichi Nuclear Power Plants (no doubt to be paid for by Japanese taxpayers) - the disaster that seems to keep on giving. It appears that Japanese PM Abe is hoping/praying this disaster will magically disappear.
ZH has been shouting about what will happen once all the fund managers start selling.
Since all of them already know what will happen, that may probably not going to happen as the fund managers will try hard to find a way to protect their equity without putting too much pressure.
One thing that they are doing is to buy lots of put options.
The market can stay flattish as result of fund managers being adequately informed.
Can stay doesn't mean Will stay.
And fund managers can only do so much. The "market" has changed and has nothing to do anymore with a regular economical situation.
this new situation will unwind on some day. Which day? Who knows....
Without the unwind the % of ordinary people detrimentally affected will grow because the good investment in the system and the return that people depend on for a life is missing.
That is what will force the unwind but once it starts it collapses so the alternative is at what point do all the 99% despise the 1%?
It is growing, NIRP will only add to it, the ban on cash will add to it further, then all the crime because there is not enough in the lowest levesl of economies. Now add in nations being turned into anarchy through regime change and all the rest. Even Obamacare added to it!
Since 2008 as an estimate I would reckon 10% - 20% more people realise what has gone on.
Occultist and medium Alice Bailey stated that she was "introduced" to a spirit during several sessions of auto writing. The spirit told her it's name was "Djwal Khul", and told her about many coming events in human history. The spirit told her of another coming world war {WW2}, then many years of relative peace, with an explosion in knowledge and wealth. Then, said the spirit, a period of misery would begin before the end of the century, culminating in a global financial collapse that would begin in Japan. Makes sense.
Shit. And I quit drinking for the night.
Now I have to go find some propofol.
Futures up.
It's bad news ain't it? What else would we expect?
Gold is down forty cents U.S.
Bison are up. 12.7% yoy.
Stack on
When they correct, I'm backing up the truck.
Well, here's the deal: you will wake up one morning, in the distant future (or tomorrow) and the whole fucking thing will seize up. Period. I saw this happen in Vietnam, many, many years ago. The world stopped (for the vietnamese civilians ) in October 1968, when the US government issued a new MPC (Military Payment Certificate #661). Every common citizen in Vietnam woke up that morning and was totally wiped out financially. That's the way it will happen here, and probably across most of the Western world. My guess it will be the SDR.
And then life went on.
What are you doing up this late old man? You have pain and PTSD issues too?
Japanese stock market..like a sailor deserted at sea on a raft..water..water..everywhere... but not a drop to drink...
“We’re not interested in doing that, as long as Russia is not willing to make a constructive contribution to our counter-ISIL effort,” said Mr. Earnest, using another name for the Islamic State. “Russia has their own agenda, and it’s an agenda right now that they’re pursuing on their own. So it’s not particularly surprising to me that President Putin would resort, in some desperation, to try to send the second highest ranking official in the Russian government to the United States to try to convince us to join them. But the fact is that is a request that’s fallen on deaf ears.”
ha ha ha :D
I believe we'll see a short term High for the S&P500 this Friday/Monday, as they represent Cycle Turn Dates based on my own developed model. Yesterday, I closed the shorts entered OCT 13 @ 2017 at the Support Trend Line 1990 area, Target Price for that day. If you're interested, you can read more here:
http://tripstrading.com/2015/10/15/sp500-a-short-term-high-for-oct-1619/
http://tripstrading.com/2015/10/08/sp500-tripstrading-cycle-model-3/
http://tripstrading.com/2015/10/10/sp500-suffering-from-low-energy/
http://tripstrading.com/2015/10/09/sp500-how-cycles-take-their-time/
Crush gold...push oil? Do something!
Stock futures in the green ant that some weird sheet... Someone one is plumb friggen cwazy, guess its orders for xmas season, nothing else I can figure out. No exports, stocks up, how hilarious...
very instructive article thanks tyler !
When you decide to print and own everything you come to a point where you only buy and sell to yourself.
At that point there is no profit in the game, no more citizens to be fleeced.
What comes next? It had already been mentioned quite a bit in the last 12 months.
NIRP - the sign that the system is wholly owned, no more profit to be made off sheep so to maintain their profitability they will use NIRP, a direct tap into your financial bloodstream.
Helipcopter drops are the same, it is a way to keep the money flowing to them when there is none left although on this one incurs a debt somewhere that sheep will be on the hook for.
CENTRAL BANKER = TRUE MASTERS OF THE UNIVERSE NOW I WANT TO BE SKELETOR.
OT...TYLERS.. http://www.muddywatersresearch.com/research/tlsn/mw-is-short-teliasonera/ + Open letter
ETF - Everything Totally Fucked
They will simply create a “special investment vehicle” which will turn what is deemed illiquid into liquidly which can be hypothecated and leveraged.
There is no end until the game is over.
So the question isn’t what is changing in the real world, it is what is the end game?
Assuming is not knowing.