"Not only is it possible that we may need to see technical default and deposit blocks in order to come to a new programme, it may be necessary to do so in order to break the current impasse in negotiations," Goldman says, after indicating that a Greek government shakeup is now likely inevitable.
- Senate lets NSA spy program lapse, at least for now (Reuters)
- Draghi Deflation Relief Means Little With Greek Threat Unsolved (BBG)
- Tepid factory data add to Asian gloom (FT)
- Citigroup Likely to Close Banamex USA (WSJ)
- Frugality of High Earners in U.S. Shows Long Shadow of Recession (BBG)
- Greece’s Tsipras Warns Bell May Toll for Europe (BBG)
- Carnegie Mellon Reels After Uber Lures Away Researchers (WSJ)
- Romário leads drive for Brazilian probe into Fifa (FT)
- Faster than China? India's road, rail drive could lay doubts to rest (Reuters)
Remember China's 6% crash last week? It is now a distant memory made even more remote thanks to the latest batch of ugly data out of China, coupled with hints of even more liquidity injections, which led to the latest surge in the Shcomp, an index that has put most pennystocks to shame. In Europe, the big story remains Greece, and as everyone expected, the doomed country and its creditors failed to make a deal on Sunday. This is after Greek Officials were said to have prepared a draft agreement, which was expected to be announced on Sunday. Not helping things, Greek PM Tsipras came out in fully defiant mode and accused bailout monitors of making “absurd” demands and seeking to impose “harsh punishment” on Athens. A bunch of final PMI number showed a modest improvement in the periphery at the expense of Germany whose deterioration is starting to be a concern.
"On the Wednesday and Thursday it was reported that Greeks withdrew 800 million Euro from checking accounts. Friday's number will dwarf that. Whe you go to a Greek bank you pull off a ticket and wait for your number to be called. The hall in my bank contains about 60 seats all of which were filled. There were folks standing behind the seats and in fact throughout the hall, all wanting to get their cash out before the bank closed at 2 PM."
Having dropped over 10% in the previous 2 days, what better way to get the speculative frenzy of Chinese housewives levered up and buying stocks again than terrible macro data. With China HSBC Manufacturing PMI printing 49.2 (the 3rd monthly contraction in a row) and China's official Services PMI tumbling to its lowest since Dec 2008, the 'bad' news seems to have been greeted wondrously as Chinese stocks are up 2-4% on the news. CHINEXT back to fresh highs, Shenzhen is outperforming, and Shanghai and CSI-300 are all pushing higher. Add to this the news that the CSI-300 its rebalancing some positions and the 'correction' in China is now old news...
Despite proclamations by Kuroda, Abe, and various other elected (and unelected) officials that the 'deflation mindset' is gone from Japan, it appears one segment of the population is keenly aware of the ongoing deflationary market for one staple item. Just as we warned was occurring in America, it appears the cost of blow-jobs has gone from just-plain-cheap to "well, why not?" As one intrepid reporter ventured into the Otsuka red-light district of Toshima Ward discovered, the fee for an oral session at a “pink salon” starts as low as 2,000 yen ($16!).
On Saturday we introduced readers to the “Ferguson Effect”. The idea is that the recent spate of prosecutions and instances of social unrest that followed a series of events involving perceived police misconduct directed at African Americans have made police officers gun shy — literally. A new study by The Washington Post suggests otherwise...
It took a paltry $1.15 million in bribes to get everyone in the Senate on the same page. And the biggest shocker: with a total of $195,550 in "donations", or more than double the second largest donor UPS, was none other than Goldman Sachs.
While an extension of the Patriot Act, that landmark bill which ushered in the America's Big Brother, "turnkey totalitarian state" (previewed here long before Edward Snowden's shocking revelations), is just a matter of time, supporters of the Fourth Amendment scored a brief victory last night when following yet another marathon 10 hour filibuster and refusal to play by the script by Rand Paul, the Senate failed to extend the Patriot Act, leaving the future of America's "war against terrorists" but really against "enemies domestic", i.e., anyone who uses email, has a cell phone or in any other electronic way communicates with others, in limbo.
"Until and unless we at least resolve all five of the following, and everyone involved wears an orange jumpsuit and has their corporate and institutional edifices closed down with the ill-gotten gains disbursed back to their victims we are, as a nation, DONE."
On Sunday, PM Alexis Tsipras penned a lengthy statement expressing his frustration at creditors’ insistence on presenting what he calls “absurd proposals” even as the Greek delegation has gone most of the way towards meeting the troika’s demands. "Judging from the present circumstances, it appears that this new European power is being constructed, with Greece being the first victim. To some, this represents a golden opportunity to make an example out of Greece. If some, however, think or want to believe that this decision concerns only Greece, they are making a grave mistake. I would suggest that they re-read Hemingway’s masterpiece, 'For Whom the Bell Tolls.'"
It took 31 years, but it appears that the origins of 1984 are finally upon us. It’s happening all across the West at an alarming pace, and people are willing to allow it. That’s the funny thing about freedom. True freedom means that you are free to be an idiot. Unfortunately most people in the West are caged birds. It might be a nice cage with plenty of Starbucks and Bed, Bath, and Beyond megastores. But it’s a cage... filled with clueless birds chirping away about how free they are.