Last week, Zero Hedge first showed a chart so simple, even a Krugman could get it: at this point (and really ever since USDJPY 110 and higher), any incremental Yen devaluation is destructive for the Japanese economy, leading to an unprecedented surge in defaults. And here is Japan Times confirming what we said, with a report that "Corporate bankruptcies linked to the yen’s slide hit a new record in November, highlighting the strains on small and midsize companies as Prime Minister Shinzo Abe campaigns for re-election on his deflation-busting economic strategy."
- JP Morgan 200K
- Goldman Sachs 220K
- Citigroup 225K
- HSBC 230K
- UBS 230K
- Credit Suisse 235K
- Morgan Stanley 235K
- Deutsche Bank 250K
- Marchers again swarm New York to protest death at hands of police (Reuters)
- N.Y. Police Chokehold Evidence to Stay Secret as Protests Spread (BBG)
- Obama to announce choice of Ash Carter for defense chief Friday: White House (Reuters)
- Boehner vows to avoid government shutdown with help from Democrats (Reuters)
- Brent Heads for 5-Year Low as Saudi Discounts Spur Competition (BBG)
- Will Cheap Oil Lead to Big Mergers? (WSJ)
- Bank of Russia Ramps Up Ruble Support (WSJ)
- China Bad-Loan Level Seen Understated After Economy Slows (BBG)
- Uber Snags $41 Billion Valuation (WSJ)
Confused why in the lack of any horrible economic news (unless of course someone leaked a worse than expected November payrolls print which would put QE4 right back on the table) futures are higher, especially in the aftermath of yesterday's disappointing ECB conference? Then look no further than the Yen which has now lost pretty much all control and is in freeplunge mode, rising some 25 pips moments ago on no news, but merely as wave after wave of momentum ignition algos now make a joke of the Japanese currency, whose redline of 123 (as defined by SocGen)is now just 240 pips away. At this pace, Japan's economy, which as reported yesterday has just seen a record number of corporate bankruptcies due to the plummeting yen, may well be dead some time next week. Which, with Paul Krugman as its new and improved economic advisor, is precisely as expected. RIP Japan.
It appears not all the government members approve of the new foreign-born members of the Ukraine parliament... as this fight just broke out...
Eric Garner Protesters Swarm New York Tunnels, Squares, & Bridges; 100s Heading For 1 Police Plaza - Live FeedSubmitted by Tyler Durden on 12/05/2014 00:00 -0400
Having abandoned our mental and emotional slavery and embraced personal sovereignty. Defending our children from the lies of statists and oligarchs is one of the most important things we can do as a parent. However, a healthy concern we have is that we don’t want to merely replace the state. What we mean is we don’t want to eliminate state propaganda and brainwashing and merely replace it with our own equivalent. Our intentions are good as a parent, but we never want to allow my passion and perspective to become the automatic default belief system for our children.
Citi claims gold is a 6000-year-old bubble, perhaps Mr. Buiter has not seen this chart?
America has created a moral hazard for all Americans in that we feel we always have a fail safe no matter what we do because we’ve always succeeded. But so too had every other great dynasty until it didn’t. If we do not force a change in our economic policies we are very close to and perhaps already past the point of no return. I have no witting quip to end this article. The economic landscape we face today is nothing short of dire. And at the risk of sounding overdramatic we either force a policy change, suffer the short term pain and restructure or we and all future generations will live in a very different America from the one our folks left us.
Did you know that the rate of suicide is highest during this time of the year and that 45 percent of all Americans dread the Christmas season? We are constantly being told that Christmas is the happiest time of the year, but mental health professionals tell us that the exact opposite is true. For large numbers of Americans, the period between Thanksgiving and Christmas is filled with stress, anxiety, loneliness and family squabbles. And for most people, the reality of the holidays never even comes close to matching up with the glittering ideal portrayed in movies and on television...
Officially called "The Ministry of Information Policy," Mashable reports the Ukraine government has established a department that critics are calling the 'Ministry of Truth' in a dystopian reference to George Orwell's 1984 (apparent instruction manual). Run by a close ally of President Poroshenko's close ally, while its main objective appears to be confronting Russia’s formidable propaganda machine, the Ministry is likely to also restrict free speech and inhibit journalists' work - particularly in war-torn eastern Ukraine, according to observers.
The oil and gas boom in the United States was made possible by the extensive credit afforded to drillers. Not only has financing come from company shareholders and traditional banks, but hundreds of billions of dollars have also come from junk-bond investors looking for high returns. Junk-bond debt in energy has reached $210 billion, which is about 16 percent of the $1.3 trillion junk-bond market. That is a dramatic rise from just 4 percent that energy debt represented 10 years ago. junk bonds pay high yields because they are high risk, and with oil prices dipping below $70 per barrel, companies that offered junk bonds may not have the revenue to pay back bond holders, potentially leading to steep losses in the coming weeks and months. The situation will compound itself if oil prices stay low.