The persistent claim emanating from Washington that America spreads freedom and democracy around the world has been exposed as ludicrous numerous times and in many parts of the world, but not in the US itself, and that’s what counts most. The notion that we we can grow our way out of the mess that our previous growth spurt has gotten us into, rests at best on very flimsy foundations. To shake off this all-encompassing growth ideal, however, we would need to radically change our ‘model’ of the world.
How do we know if the current signal is a “threshold crossing” into a better climate for stocks, or the lower bound of a new climate of elevated volatility? We cannot know for sure at this point if a volatility shift has occurred. We do have our reasons to be suspect of stocks in the longer-term, but not based on this data. Perhaps the best takeaway from this study is that a drop in the VIX below the 20 level is not an automatic all-clear sign for stocks. Similar moves have, on several occasions, marked the lower bound of a new high-volatility environment. In other words, stocks are not an automatic home run here. A year from now, it is entirely possible that stocks will have struck out.
"An invented excuse about the suggested threat coming from Russia is possibly just camouflage used to disguise the plans to further expand NATO toward our borders."
This is the story of a veteran NYSE specialist who noticed manipulation in the NYSE market open Imbalance, loudly complained to the NYSE, was ignored, then decided to profit from said manipulation himself... and got busted. And that's where the story begins...
While Alcoa did have the usual justifications for the collapse in its Q3 sales and EPS, blaming what else but China, the real culprit is none of that. Because, as regular readers know too well, with Alcoa it is all about the Non-GAAP addbacks.... and the problem here is that while in previous quarters Alcoa's "restructuring" charges were vast, usually eclipsing the actual GAAP earnings number, in Q3 they tumbled to "only" $66 million - the lowest since March 2013.
"Thanks to President Obama’s leadership and the determination and sacrifice of the American people, we’ve worked our way out of that ditch and put our economy on sounder footing. Now we have to keep going.
To prevent irresponsible behavior on Wall Street from ever again devastating Main Street, we need more accountability, tougher rules and stronger enforcement. I have a plan to build on the progress we’ve made under President Obama and do just that."
Bill Gross Sues PIMCO "Cabal" Over Ouster, Seeks "Hundreds Of Millions", Blames El-Erian - Full ComplaintSubmitted by Tyler Durden on 10/08/2015 10:14 -0500
“Driven by a lust for power, greed, and a desire to improve their own financial position and reputation at the expense of investors and decency, a cabal of Pimco managing directors plotted to drive founder Bill Gross out of Pimco in order to take, without compensation, Gross’s percentage ownership in the profitability of Pimco."
Following yesterday's flip-flop on TPP, Hillary Clinton has unleashed some new financial system 'policies' this morning, the most crucial of which includes the provision of a transaction tax which will dramatically penalize high-frequency traders (gratifying critics of HFT's instability-creating market structure). The question is, who is she trying to appease with this 'policy'? The answer is simple - Follow the money... once again.
"They're Converging To Dire Levels!": SocGen's Edwards Delivers Critical Warning On Inflation ExpectationsSubmitted by Tyler Durden on 10/07/2015 17:00 -0500
"The collapse in inflation expectations tells us that the market believes the central banks, despite their monetary profligacy, are failing to prevent the western economies from turning Japanese, and thus at risk of repeating their devastating slide into outright deflation in the 1990s."
"The Saudi Population Are Growing Restless": A Deep Look Inside The "Black Box" That Is Saudi ArabiaSubmitted by Tyler Durden on 10/07/2015 14:27 -0500
"The Saudi population, especially the younger people, are growing restless because they see what is happening in the world through social media of which they are among the highest users - that’s the only means they have to communicate. So the situation inside the country is also very fragile and the foreign policy conducted by the current regime is very perilous. It is only a matter of time because the Gulf States are ruled by oligarchies who maintain control through bribery and the sword. So this is a challenging time for the Gulf States despite all the public commentary suggesting they are immune to the uprisings."
Brazil, which is caught in a vicious recessionary spiral which is only set to get much worse before it gets better, tried to obtain some much needed cash when earlier today it conducted an auction to sell exploration rights for of its oil and gas. It was, in short, a disaster. According to Reuters, by midday Brazil had only sold 17 of 119 blocks offered. A total of 36 companies from 17 countries - including Petrobras, ExxonMobil Corp, BP Plc and Royal Dutch Shell Plc - registered for the auction. None of the majors have bid so far. Only a handful of sold blocks were even contested.
As the following org chart of Glencore shows, the company - at least on the surface - appears to be far "simpler" than Enron was in the days preceding its biggest, for the time, and quite unexpected, bankruptcy.
In a furious race to shore up as much liquidity as possible, Glencore - which a month ago announced a dramatic deleveraging plan - and its peers have been quietly scrambling to raise billions in secured funding. Case in point none other than Glencore's biggest competitor and the largest independent oil trader in the world, Swiss-based, Dutch-owned Vitol Group, whose Swiss unit Vitol SA earlier today raised a record $8 billion in loans.
"The strong stock market rally during the last few days has pushed the S&P 500 near its highest closing level since the correction began in late August. This has boosted optimism that the recent selloff may be ending. While this could certainly prove to be the case, we remain less sanguine that the vulnerabilities, which initially produced this correction, have yet to be resolved. Ultimately, we expect a more fearful investment culture suggesting a final capitulation and more importantly, a lower stock market valuation level able to withstand a less hospitable recovery as the economy nears full employment."