Illinois

While hardly a surprise, the spin for the latest round of overnight BOJ USDJPY-buying exuberance, which sent the pair higher by another 100 pips to a fresh 7 year high of 114.500 and just over 500 pips from the Albert Edwards "line in the sand" 120 and pushed US equity futures higher with it, has been the Republican sweep in the midterm elections which not only solidified GOP control of the House but also gave Republicans outright control of the Senate.

"Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other" - Oscar Ameringer

House: 435 Seats, 43 Undecided, Results: Republicans 235 - 157 Democrats (Dem -8, Rep +10)

Senate: 100 Seats, 4 Undecided, Results: Republicans 52 - 45 Democrats/Independents (Dem -7, Rep +7) REID CONGRATULATES MCCONNELL ON REPUBLICAN SENATE WIN

And here are 5 things to watch for the day after the election...

"Since 9/11, those thank yous have been aimed at veterans with the regularity of the machine gun fire that may still haunt their dreams. Veterans have also been offered special consideration when it comes to applications for mostly menial jobs so that they can “utilize the skills” they learned in the military. While they continue to march in those welcome home parades and have concerts organized in their honor, the thank yous are in no short supply. The only question that never seems to come up is: What exactly are they being thanked for?"

• CDC says returning Ebola medical workers should not be quarantined (Reuters)
• Sweden’s central bank cuts rates to zero (FT)
• Hacking Trail Leads to Russia, Experts Say (WSJ)
• Discount-Hunting Shoppers Threaten Stores’ Holiday Cheer (BBG)
• Apple CEO fires back as retailers block Pay (Reuters)
• Repeat after us: all China data is fake - China Fake Invoice Evidence Mounts as HK Figures Diverge (BBG)
• FX Traders’ Facebook Chats Said to Be Sought in EU Probe (BBG)
• Euro Outflows at Record Pace as ECB Promotes Exodus (BBG)
• Apple boosts R&D spending in new product hunt (FT)

• White House questions new Ebola rules, nurse plans to sue (Reuters)
• States stand firm on Ebola quarantines despite White House pressure (Reuters)
• Rousseff Naming Brazil Finance Minister Key to Regain Trust (BBG)
• Ukraine leader wins pro-West mandate but wary of Russia (Reuters)
• Single Firm Holds More Than 50% of Copper in LME Warehouses (WSJ)
• Treasury Liquidity Squeeze Seen as Dealer Shut Off Machine (BBG)
• CVS follows Rite-Aid, shuts off Apple Pay (USAToday)
• Oil Speculators Bet Wrong as Rebound Proves Fleeting (BBG)
• Draghi Sets Stimulus Pace as ECB Reveals Covered-Bond Purchases (BBG)
• German Ifo Business Confidence Drops for Sixth Month (BBG)

Top Bioweapons Expert Is Convinced of It

The trend of average U.S. citizens being incarcerated by overzealous judges and prosecutors within the police state formerly known as America continues with reckless abandon.

And the overnight futures ramp started off so promising.

The talking heads will be rolled out on CNBC to assure the masses that all is well. The economy is strong. Corporate profits are awesome. The stock market will go higher. Op-eds will be written by Wall Street CEOs telling you it’s the best time to invest. Federal Reserve presidents will give speeches saying there are clear skies ahead. Obama will hold a press conference to tell you how many jobs he’s added and how low the budget deficit has gone. We couldn’t possibly be entering phase two of our Greater Depression after a temporary lull provided by the $8 trillion pumped into the veins of Wall Street by the Fed and Obama. Could we?

We believe there is scientific and epidemiologic evidence that Ebola virus has the potential to be transmitted via infectious aerosol particles both near and at a distance from infected patients, which means that healthcare workers should be wearing respirators, not facemasks...  To summarize, for the following reasons we believe that Ebola could be an opportunistic aerosol-transmissible disease requiring adequate respiratory protection: i) Patients and procedures generate aerosols, and Ebola virus remains viable in aerosols for up to 90 minutes; ii) All sizes of aerosol particles are easily inhaled both near to and far from the patient; iii) Crowding, limited air exchange, and close interactions with patients all contribute to the probability that healthcare workers will be exposed to high concentrations of very toxic infectious aerosols; iv) Ebola targets immune response cells found in all epithelial tissues, including in the respiratory and gastrointestinal system; v) Experimental data support aerosols as a mode of disease transmission in non-human primates.

Is the "Conventional Wisdom" All Wrong?

We CAN Stop the Ebola Epidemic ... But ONLY If We Understand How It’s Spread

• European Bond Yields Go Negative (WSJ)
• Traveler from Liberia is first Ebola patient diagnosed in U.S. (Reuters)
• Hong Kong Protesters Step up Pressure on Leung to Quit (BBG)
• JPMorgan to face U.S. class action in $10 billion MBS case (Reuters)
• Turkey mulls military action against Islamic State (Reuters)
• Singapore Home Prices Fall for Fourth Straight Quarter on Curbs (BBG)
• Italy's Economic Woes Highlight Dilemma for European Central Bank (WSJ)
• Advanced iOS virus targeting Hong Kong protestors (Reuters)
• Fed Scrutiny of Leveraged Loans Grows Along With Bubble Concern (BBG)
•  Mosquito Virus That Walloped Caribbean Spreads in U.S. (BBG)

"Despite the robust investment returns since 2004, annual growth in unfunded pension liabilities has outstripped these returns," Moody's warns in its latest report on the state of public pension systems. As Bloomberg reports, the 25 biggest systems by assets averaged a 7.45% return from 2004 to 2013, but liabilities tripled over the same period leaving them facing a $2 trillion shortfall as investment returns can’t keep up with ballooning obligations. The top 25 funds account for 40% of the entire US public pension system with Illinois, Kentucky, Connecticut, and Louisiana at the top of the 'most underfunded' list.

What follows is the most powerful recorded police checkpoint scene we have witnessed...