Moments ago, the biggest single employer in the US after the Federal government, with 2.2 million workers, surprised its shareholders when it announced that Rob Walton, who had served as Chairman of the Board since 1992, was stepping down (he will stay on as a director) and would be replaced with vice-Chairman Greg Penner, grandson of founder Sam and son in law of Rob, who started his career at Goldman Sachs before joining WMT as a management trainee.
- Europe shares set for worst week of 2015 (Reuters)
- Jobs Report Not Likely to Trigger June Rate Hike (Hilsenrath)
- U.S. jobs market seen firming despite lackluster growth (Reuters)
- Gross Says Bond Rout Scary as Hell Even Without Bear Market (BBG)
- Apple Is the New Pimco, and Tim Cook Is the New King of Bonds (BBG), which ZH said in 2013
- In 'year of Apple Pay', many top retailers remain skeptical (Reuters)
- OPEC Nations Signal Few Prospects for Oil-Production Change (BBG)
- China regulator says amending rules on margin trading, short selling (Reuters)
FTW (For Those Who Say I Just Don't Get It... Get This!) There seems a shift showing itself in dramatic fashion unseen since the 2008 financial meltdown. Not only are some key players, or institutions beginning to notice some troubling signs; but rather; those very signs that everyone was told 'won’t or shouldn’t happen', not only are, they’re starting to rear their ugly heads in much greater frequency.
"The elderly dependency ratio is in the early stages of a relentless rise that doesn't hit an interim peak until around 2036, over two decades from now." The "structural shift" in the dynamics that drove the economy and financial markets in the 80's and 90's will not likely exist again for quite some time. Of course, if this was not the case, would we still be needing massive Central Bank interventions to support global economies and markets? Meh? What could possibly go wrong? [sarcasm alert]
Recently, we outlined Hillary Clinton’s keynote speech requirements which include the customary $225,000 plus a “chartered roundtrip private jet”, $1,000 for a stenographer, and a host of other “incidentals.” But the Clintons actually come cheap compared to a certain former Fed chair. Here’s a look at speaking engagement rates for some well-known former and current US officials.
Mysterious cartoons mocking “Goldman Rats” and Hillary Clinton are appearing all over NYC...
Taibbi called Goldman "a great vampire squid wrapped around the face of humanity." This time, their victim was Sarvshreshth Gupta, a rookie analyst just 22 years old from the University of Pennsylvania. Gupta was found dead in a parking lot next to his apartment building on the corner of Sacramento Street and Brooklyn Place in San Francisco. He apparently fell from the building.After working 100 hours a week, he told his father, "This job is not for me." In March, he quit. However, like the crazy woman in Fatal Attraction, Goldman was not going to be ignored.
Under Hillary, US Sold $66 Million In Chemical Arms To Clinton Foundation Donors Gassing Their CitizensSubmitted by Tyler Durden on 06/03/2015 13:16 -0400
"During the roughly two years of Arab Spring protests that confronted authoritarian governments with popular uprisings, Clinton’s State Department approved $66 million worth of so-called Category 14 exports -- defined as "toxicological agents, including chemical agents, biological agents and associated equipment" -- to nine Middle Eastern governments that either donated to the Clinton Foundation or whose affiliated groups paid Bill Clinton speaking fees," IBTimes reports.
Wendy's just took buyback mania to the next level when, earlier today, it announced it would buyback $1.4 billion of its shares, which amounts to just under 50% of its entire float!
Two years ago, bank analyst Mike Mayo asked JPM chief Jamie Dimon a simple question: why should affluent customers not pick UBS over JPM due to a mismatch in capital ratios, to which Dimon's response was even simpler: "that's why I'm richer than you." To which we then added: "No logic, no rationale: all about the bottom line, which to Jamie at least is all that matters. The bottom line was indeed all, because as Bloomberg calculated overnight, over the past several years, Jamie Dimon quietly became not just "richer than you", but "much" richer: his net worth is now well over $1 billion!
It took a paltry $1.15 million in bribes to get everyone in the Senate on the same page. And the biggest shocker: with a total of $195,550 in "donations", or more than double the second largest donor UPS, was none other than Goldman Sachs.
Having detailed the less status-quo-sustaining side of things, thanks to some frankness from Nobel Prize winner Robert Shiller, who warned "unlike 1929, this time everything - Stocks, Bonds and Housing - is overvalued," we thought it only fair-and-balanced to illustrate the alternative perspective and who better than Jeremy Siegel to deliver it. In his anti-thesis of Shiller's facts, Siegel unleashes textbook dogma to pronounce, "in no way do current levels quality as a bubble", that stock returns should remain supported by fundamentals, there is no sign of a recession in the next 18 months, The Dow's fair-value currently is 20,000, and "not much" could dissuade him from holding stocks.
"The oil rebound has run out of gas and now you are seeing nervous investors with itchy trigger fingers bailing out of USO," notes Bloomberg, as the biggest US ETF that tracks oil is heading for the largest two-month outflow in six years, raising concern that crude’s 30% rally may stall. As BNP points out, "we do not think that the bulls have enough supporting fundamental factors to make a case for a higher oil price," and judging by the mass exodus from USO, as Bloomberg concludes, knife-catching 'investors' "don’t want to get burned by another drop in oil."
While it is likely oil prices could get a bit of a bump from a decline in the U.S. dollar, ultimately it will come down to the fundamentals longer term. It is quite clear that the speculative rise in oil prices due to the "fracking miracle" has come to its inglorious, but expected conclusion. What is interesting is that most have not figured out that the same thing will occur with the artificially driven surge in financial markets as well. It is quite apparent the some lessons are simply never learned.
Goldman Sachs proposes that society should bend to the needs of the financial and monetary system rather than reform of that system. At any rate, the proposals put forward by them are unlikely to achieve any kind of long-term solution to the problem of massive unsustainable debt faced by the western world and Japan.