So with regards to BABA’s $230 billion market cap at week’s end, you can say this: None dare call it price discovery! What it shows is that Wall Street is well and truly off it rocker. The Chinese swindlers behind BABA didn’t even have to tap their home market. These preposterously over-valued shares were sold overwhelmingly to Wall Street - to the gamblers, speculators and robo-traders that have occupied what was once a reasonably honest capital market. So why did Wall Street capitalize an opaque mass merchant operating in a precarious economy at 27X sales? The answer is that Wall Street is a momentum driven casino that is now over-valuing everything that moves and all that stands still. That’s the ultimate evil of monetary central planning. Having destroyed honest price discovery in the financial markets, the Fed now “accommodates” the speculators one meeting at a time - in deathly fear of a hissy fit.
What Iraq Thinks: "It Is Obvious To Everyone That ISIS Is A Creation Of The United States And Israel"Submitted by Tyler Durden on 09/22/2014 14:54 -0400
Ever since the stunningly rapid arrival of ISIS on the global scene, there has been speculation that this spin-off of Al-Qaeda, itself a "terrorist" organization if not created by the CIA then certainly funded by Langley courtesy of Operation Cyclone in its "freedom fighter" stage, has had the implicit or explicit backing of either the US or Israel intelligence service. Nowhere is such speculation more vocal than in the one country that has suffered the most from ISIS: Iraq, or rather what is left of the country now that it is split into southern Iraq, the Islamic State, and a Kurdish region that quietly sells crude to unknown buyers at blue light special prices. To the Iraq locals there is no mystery: “It is obvious to everyone that the Islamic State is a creation of the United States and Israel” says Omar al-Jabouri, 31, a Sunni Muslim from a predominantly Shiite neighborhood of Baghdad. His view echoes what a vast number of his peers think.
In yet another rather embarrassing event for The White House, just days after President Obama praised the French for helping in the fight against ISIS, and General martin Dempsey noted "the French were our very first ally and they're with us again now," French officials have, according to Reuters, ruled out participation in airstrikes against Islamic State in Syria. With the fall of France (and Germany already saying "nein"), it appears the broad coalition is now a "coalition of none," as Obama has stated the US would not go it alone...
It's worst and getting worst-er. Hundreds of domestic wells in California's drought-parched Central Valley farming region have run dry, according to AP, leaving many residents to rely on donated bottles of drinking water to get by. With government set to regulate deeper drilling, hope is plunging that a solution to California's drought will come anytime soon as groundwater levels plunge. The stories of struggle are simply stunning, especially given they are coming from America with Governor Brown signing an executive order that provides money to buy drinking water for residents statewide whose wells have dried up. "We need water like we need air," exclaimed one charity leader trying to raise money for water tanks, "Families every night dream about water," said another. And ripped from the famine-headlines of East Africa, "every day [Californians] thinking about how they're going to deal with water."
We didn’t get what we first postulated yet: Crisis became calm. Contagion became cured. And last but not least catastrophe morphed into an even grander state of complacency. What we did might be even more illuminating. Here’s what a few of us also know that we are not “wrong” about:"When a monkey throwing darts can outperform most of today's so-called 'best of the best' hedge funds – we’re going to put our money on the monkey, rather than putting it anywhere close to where these people can put their hands on it for their own personal self-serving monkey business." What we don’t need – nor want – is another bowl of the 2008ish tripe washed down with this years new flavored Kool-aid.
A day after US ambassador to The UN Samantha Powers stated, "we will not do the airstrikes alone if the president decides to do the airstrikes," and Russia warned, "bombing Syria without the cooperation of Damascus can have destructive practical consequences on the humanitarian situation in Syria," it appears President Obama's grand strategy to combat IS via a 'broad coalition' of allies is flailing. While the WSJ reports, The Pentagon is preparing war plans in Syria that would include an intensive initial wave of strikes against Islamic State targets, Germany's Foreign Minister Frank-Walter Steinmeier explained today that providing air support or sending ground troops to fight Islamic State is "out of the question for us." For now, it appears, the only nation involved in the 'broad coalition' is France. Why? Because as we said yesterday, this is merely over fears of more BNPs. "A key component of this would be allied participation," said a U.S. official; does '1' ally count?
“We are mindful of the potential for a build-up of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility,” the G-20 officials said in a communique released in Cairns, Australia. “We welcome the stronger economic conditions in some key economies, although growth in the global economy is uneven.”It is unclear just what that statement means: BTFATH, but only on a downtick?
Russia FinMin Calls For Shift Away From US Treasurys Into BRIC Bonds, Settlement In Non-Dollar CurrenciesSubmitted by Tyler Durden on 09/20/2014 21:43 -0400
it was Russia's finance minister Anton Siluanov who was the designated "bad guy", and as the WSJ reported, Russia is considering diversifying its debt portfolio away from countries that have imposed sanctions on Moscow and into the papers of its BRICS partners. Speaking on the sidelines of an annual investment forum in the Black Sea town of Sochi, Mr. Siluanov said the Finance Ministry wants to diversify its investment basket, and is looking for higher yields without too much risks. He said the ministry will consider buying papers issued by Brazil, India, China and South Africa, which along with Russia are known collectively as the Brics countries. "[We would like to] walk away from investing in papers of the countries that impose sanctions against us," Mr. Siluanov said, adding that the reshuffle would be carried out gradually. He didn't elaborate on when the first purchases of Brics debt may take place.
Our degenerate Central Bankers have tossed up yet another asset air-ball into the debt financed Bubblenomics Millennium. The only remaining question is why?
In a move that is certain to further escalate already stretched racial tensions in America's most cosmopolitan city, some 100 New York City buses will soon carry jarring anti-Islamic posters which feature photos of an ISIS beheading victim, his alleged executioner, Adolf Hitler, declare "Yesterday's moderate [Muslim] is today's headline" and proclaim "It's not Islamophobia, it's Islamorealism" as part of an "educational campaign." According to the NY Daily News, the ads, paid for by flame-throwing blogger Pamela Geller, at a cost of $100,000, are intended as an “education campaign” to warn of the “problem with jihad” and Islamic sharia law, Geller said.
There is no perfect system or place on our blue planet, so spare me your pious lectures about poverty in the 3rd world until, say, you've fixed your own f***ing Detroit!
Yesterday it was the UK which scrambled a squadron of Typhoon jets when two Russian Tu-95 "Bear" Bombers had gotten too close to its shores, even if still located in international space. Then overnight, none other than the US did the same when two F-22 fighter jets intercepted six Russian military airplanes just over 50 miles away from the western coast of Alaska, military officials said Friday, among which identified as two IL-78 refueling tankers, two Mig-31 fighter jets and the same two "Bear" long-range bombers, which are known to carry tactical ICBMs with nuclear warheads among their arsenal.Lt. Col. Michael Jazdyk, a spokesman for the North American Aerospace Defense Command, or NORAD, said the U.S. jets intercepted the planes about 55 nautical miles from the Alaskan coast at about 7 p.m. Pacific time Wednesday.
US imperialism was once a fearsome force - mainly for ill. Under the latter heading, Washington’s savage destruction of Vietnam four decades ago comes readily to mind. But now the American Imperium has become just a gong show on the Potomac - even as its weapons have gotten more lethal and its purposes more spurious and convoluted. There is no more conspicuous proof than Obama’s quixotic “war” on ISIS.
While none of these people, many of whom are unemployed and paid by others to stay in line for days, will spend the $3,600 someone in China just paid for a "gold" iPhone, they will gladly pay hundreds of dollars out of pocket, or in many cases simply lease with zero money down, the latest and greatest aspirational gadget to show they are cooler than they actually are.
The present global financial ‘crisis’ began in 2007-8. It is not nearly over. And that simple fact is a problem. Not because of the life-choking misery it inflicts on the lives of millions who had no part in its creation, but because the chances of another crisis beginning before this one ends, is increasing. What ‘tools’ - those famous tools the central bankers are always telling us they have – will our dear leaders use to tackle a new crisis when all those tools are already being used to little or no positive effect on this one?