Presenting the VIX. Or rather, highlighting the grotesque and blatant last second "banging the close" of the VIX. Thank you Simon Potter and your protege, Kevin Henry, for providing countless hours of sideline entertainment, and lamentation for what was once a stock market.
When we summarized the overnight session just before 7 am, we titled it appropriately enough, "No Melt Up (Yet) In Boring Overnight Trading." Little did we know, actually scratch that - we knew full well that moments later the ramp would make its now daily reappearance. Because if it weren't for the 7th straight day of no volume, no news levitation, someone, somewhere may have gotten the impression that the market is desperately manipulated and artificial, and that if it weren't for a constant ramp higher, confidence in authoritarian "markets" may disappear, and the retail investor may pull even more than was pulled last week, following a brief inflow in the market in early 2013.
Bloomberg To Appeal Halt Of "Arbitrary And Capricious" Decision, Will Fight Valiantly To Curb New York ObesitySubmitted by Tyler Durden on 03/11/2013 15:53 -0400
We believe @nychealthy has the legal authority and responsibility to tackle causes of the obesity epidemic, which kills 5,000 NYers a year.
— NYC Mayor's Office (@NYCMayorsOffice) March 11, 2013
Just hitting the tape ahead of tomorrow's scheduled hit of Bloomberg's ban on "large sugary drinks":
Judge invalidates New York City's ban on large sugary drinks; ban had been scheduled to take effect tomorrow.
Judge says sugar drink limit "illegal"
Judge finds ban to be arbitrary and capricious.
Has the time come to ban independently thinking judicial authorities who don't agree with multi-term Spanish-speaking authoritarians?
In just a week's time, the political elite in the Land of the Free gave us bills which:
- ensure the government cannot assassinate its own citizens with drones
- impose price controls with insurance premiums
- award the government with more power to initiate biosurveillance operations
- create a quota system in the labor market
It really makes me wonder... how much more will it take for people to notice how rapidly they're losing freedom, or how destructive the political leadership is?
With their crackpot monetary ideas, central banks have been robbing Peter to pay Paul without knowing which one was which. And a problem here is this thing behavioral psychologists call self-attribution bias. It describes how when good things happen to people they think it’s because of something they did, but when bad things happen to them they think it’s because of something someone else did.... When we look around we can’t help feeling something similar is happening. The 99% blame the 1%; the 1% blame the 47%. In the aftermath of the Eurozone’s own credit bubbles, the Germans blame the Greeks. The Greeks round on the foreigners. The Catalans blame the Castilians. And as 25% of the Italian electorate vote for a professional comedian whose party slogan “vaff a” means roughly “f**k off ”, the Germans are repatriating their gold from New York and Paris. Meanwhile in China, that centrally planned mother of all credit inflations, popular anger is being directed at Japan, and this is before its own credit bubble chapter has fully played out. (The rising risk of war is something we are increasingly worried about…) Of course, everyone blames the bankers (“those to whom the system brings windfalls… become ‘profiteers’ who are the object of the hatred”).
Presenting The Currence Crises, Devaluations And Regime Changes Since The Collapse Of The Gold StandardSubmitted by Tyler Durden on 03/11/2013 12:42 -0400
One of the often repeated "truisms" of modern economics, is that the advent of central banking, and the end of the gold standard ushered in a far more stable, safe and secure financial system. Facts notwithstanding (because hard as we try, we can't find a historic episode where the entire developed world had to coordinate to fund, guarantee and backstop a $30+ trillion global bail out - using even more money created out of thin air, i.e., debt - to prevent the nearly $1 quadrillion derivative complex from collapsing, not to mention the failure of every single modern financial institution, during the gold standard), the reality is just slightly different. As the following table from Bloomberg's Joseph Brusuelas shows, modern "stabilty" is certainly in the eye of the beholder, in this case manifesting itself in countless periods of uni- and multi-lateral currency devaluation, beggar thy neighbor, and currency, trade, and various other types of war.
In news that is hardly welcome to Chancellor Merkel and her September reelection hopes, German Focus magazine revealed that a substantial 26% of all Germans would back a party that wants to quit the euro. Even more disturbing is that a whopping 40% of all Germans in the prime 40-49 age group are tired of supporting a failed monetary regime and will just say "nein" to the European globalist experiment at preserving the status quo if just given the opportunity. The Italian virus is spreading: the question is which "clown" will show up on the cover of the Economist in six short months, when at least one person will appear on the political scene to take advantage of the populist protest at endless German-backed bail outs, and what as Dylan Grice so eloquently explained earlier, is merely a reaction to central banker central planning manifesting itself in ongoing social breakdown.
While it has been a while since Charlie Gasparino broke anything material, and is why we urge readers to take this news with a grain of salt, the report that CNBC's Gary Kaminsky would be leaving the Comcast channel and his role as capital markets editor and heading to Morgan Stanley as vice chair of its brokerage division would make sense, and would certainly explain the quite amicable relationship between CNBC, its various anchors, and the B-grade brokerage.
Departing a socialist regime to avoid paying taxes is not just a French thing anymore: Bloomberg reports that one of the most famous hedge fund managers of the late 2000s, if not so much recently, John "Boricua" Paulson "is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5 billion he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation." In moving to Puerto Rico, Paulson would merely be the latest person to avoid paying any taxes associated with Paulson & Company: virtually every other investor in Paulson's hedge funds also has no taxes to worry about, for a far simpler reason: taxes are generally incurred on profits, not three years in a row of relentless losses.
The Status Quo is shameless when it comes to hyping the recovery by whatever metric is most positive. Recently, that has been the stock market, but if GDP rises significantly (and recall GDP increases if the government borrows and blows money), then that number is duly trotted out by politicos and Mainstream Media toadies. If we scrape away this ceaseless perception management, we find that legitimate broadbased prosperity is always based on rising employment and increased purchasing power of wages. The phantom wealth that is conjured by asset bubbles vanishes when the bubbles inevitably pop, leaving all those who borrowed against their ephemeral bubble wealth hapless debt-serfs. If prosperity ultimately depends on employment and earned income (wages), how are we doing as a nation? Unfortunately, the answer is "terrible." As a percentage of the population, full-time employment is down. Only 36% of the population has a full-time job.
Over the weekend, FT noted that China’s central bank reported that companies and individuals sold RMB 684 billion ($109 billion) worth of foreign exchange and bought an equivalent amount of Chinese currency in January, a record for a single month. On the chart below, please point out the Chinese "hot-money" inflationary ticking time bomb (hint: highlighted).
Someone is obviously not complying with the central-planner script and rotating fast enough into equities.