Tyler Durden's picture

Guest Post: There Is A Plunge Protection Team - It’s Called The FOMC





Congress gave the Fed a mandate to “promote maximum employment, production, and price stability”; it never explicitly authorized propping up stocks. Yet through a remarkable theoretical stretch called the “wealth effect,” that’s exactly what the Fed is doing.

 
Tyler Durden's picture

Chain Store Sales Growth Worst Since 2010 (Or Why "The Fed Turned The Market Around")





If you wondered why "The Fed turned the market around" last week, acting so sensitively aggressive to act with stocks only down modestly from record highs, one glance at the following chart might answer the question. During last week's turbulence, ICSC-Goldman Chain Store Sales growth plunged to a mere 2.1% YoY - the weakest in 5 months and worst for this time of year since 2010. Does this seem like a nation of consumers willing to take up the animal spirits, confident-about-the-future, torch of escape velocity spending from The Fed?

 
Tyler Durden's picture

Harley Bassman: "The Fed Is Trying To Land A Jumbo Jet On A Football Field"





Once upon a time, one of the best sell-side analysts in the MBS space was Merrill Lynch's "Convexity Maven" Harley Bassman: he was so good, in fact, he was quickly soaked up to the buyside, or at least the prop-trading side, when several years ago he left Merrill to join Credit Suisse as a prop trader. It was here that he provided some insightful trade ideas such as "The "Anti-Widowmaker" Trade: Get Paid To Wait For The Japanese House Of Card To Collapse" and previewed the "Inevitable 'Taper'" at a time when most still didn't think the Fed was running out of paper to monetize. Then, about a year ago, Bassman disappeared again, only to reappear in a new capacity at recently-troubled bond manager Pimco. It is from here that following a year-long silences, he has just sent out his latest letter, in which he picks up on his favorite topic: implied volatility in rates, and the arbitrage opportunities it provides courtesy of epic risk mispricing in the current quote-unquote market, courtesy of the Fed's 6 year+ centrally-planned manipulation of, well, everything. 

 
Tyler Durden's picture

When Is A White House Transcript Not A Transcript?





From the "most transparent and open administration ever"...

 
Tyler Durden's picture

Wall Street Is One Sick Puppy - Thanks To Even Sicker Central Banks





Last Wednesday the markets plunged on a vague recognition that the central bank promoted recovery story might not be on the level. But that tremor didn’t last long. Right on cue the next day, one of the very dimmest Fed heads - James Dullard of St Louis - mumbled incoherently about a possible QE extension, causing the robo-traders to erupt with buy orders. And its no different anywhere else in the central bank besotted financial markets around the world. Everywhere state action, not business enterprise, is believed to be the source of wealth creation - at least the stock market’s paper wealth version and even if for just a few more hours or days. The job of the monetary politburo is apparently to sift noise out of the in-coming data noise - even when it is a feedback loop from the Fed’s own manipulation and interventions.

 
Tyler Durden's picture

Someone Didn't Do The Math On The ECB's Corporate Bond Purchasing "Trial Balloon"





Because after doing the math, we find that the biggest stock market surge in 2014 was over what boils down to be a central bank injection of... $5 billion per month?

 
Tyler Durden's picture

Saxobank CIO Warns "Another Shock Drop Is Coming.. And It's Coming Soon"





Saxo Bank's Chief Economist Steen Jakobsen is predicting another 'shock drop' in the markets within a few weeks. With debt and low inflation continuing to create a nervous atmosphere behind most markets, Steen argues that we will hit fresh lows in mid-November. Steen takes the view that central bank policy is creating a 'fantasy land' for investors and he points out that the recent 'day dive' in markets was a closer reflection of reality. Steen outlines his suggestions for trading ahead of another dip in mid November with targets for the S&P 500 around 1810 and the Dax at 8000 - 7800. Be long fixed income as it is "a free put on the equity market.. and the economic cycle is not yet ready to adapt to a rising interest rate."

 
Tyler Durden's picture

Spot The "Broken Market" Day





 
GoldCore's picture

India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High





The seemingly insatiable appetite of the growing Indian middle class for gold is causing the government in India to again consider imposing sanctions on the importing of gold. 

 
Phoenix Capital Research's picture

The Fed's Hands Are Tied Unless the Market Crashes





Having just engaged in QE for TWO SOLID YEARS STRAIGHT the Fed would totally destroy any and all credibility in its monetary policies to engage in QE anytime within the next three to six months.

 
 
Tyler Durden's picture

Peak Ponzi: Only 13% Of Loans In Bulgaria's Fourth Largest Bank Had Valid Collateral





  • BULGARIA CENTRAL BANK CORPBANK PRE-JUNE REPORTS 'MISLEADING'
  • BULGARIA CENTRAL BANK SAYS CORPBANK ASSETS ARE 6.7B LEV
  • BULGARIA CENTRAL BANK SAYS CORPBANK AUDIT SHOWED ONLY 13 PERCENT OF LOANS HAD VALID COLLATERAL
 
Tyler Durden's picture

Schizophrenic Silver Slammed On Surging Volume





What a difference 24 hours makes. Yesterday, ECB rumors sparked precious metal buying on heavy volume. Today, more denials of ECB corporate bond buying combined with a slightly-hotter-than-expected inflation print (i.e. lower odds of Fed unleashing QE4) has sent silver (and gold) tumbling... on very heavy volume...

 
Tyler Durden's picture

ISIS Claims It Hit US Embassy In Baghdad's Green Zone





"They know Baghdad. They've lived in Baghdad," said Lt.Col Oliver North, warning over the weekend that sources in Iraq believed ISIS was planning a "major attack" against the embassy in Baghdad. Yesterday we get some confirmation - via ISIS - that they did in fact reportedly strike the U.S. embassy in Baghdad. As Inquisitr reports, on Tuesday the Islamist militant group took credit for a mortar attack against the embassy in Baghdad. The group bragged about the attack on social media, claiming that there were likely casualties - “Four rockets strike Green Zone in #Baghdad; helicopters hovering over the Green Zone; ambulances heading that way after strikes!!” one ISIS militant noted on Twitter. As North concludes, "They are at the gates of Baghdad. They’re coming for us."

 
Tyler Durden's picture

The Recent Liquidation Avalanche As Explained By Dan Loeb, And Why He Is Back To Shorting Stocks Again





"Amidst this volatility and performance dispersion, we struggle with our instinct that it is a good time to short stocks with the reality of the past few years of short-selling carnage. We were intrigued by investment legend Julian Robertson’s recent comments that, “we had a field day before anyone knew anything about shorting. It was almost a license to steal. Nowadays it’s a license to get hosed.” There is no doubt that the complexities around single name short selling have increased massively following 2008 – partly as a function of government regulation and intervention, partly due to negative rebates being the norm – but we have slowly been getting back in to the shallow end of the pool." - Dan Loeb

 
Syndicate content
Do NOT follow this link or you will be banned from the site!