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To France From A Post-9/11 America: Lessons We Learned Too Late

Here are some of the lessons we in the United States learned too late about allowing our freedoms to be eviscerated in exchange for the phantom promise of security. The over-arching principle is simply this: once you start down the road towards a police state, it will be very difficult to turn back.

Stocks Jump On Hope For More Central Bank Intervention After Japan's Quintuple Recession, Syrian Strikes

As so often happens in these upside down days, was the best thing that could happen to the market, because another economic slowdown means the BOJ, even without sellers of JGBs, will have no choice but to expand its "stimulus" program (the same one that led Japan to its current predicament of course) and buy up if not government bonds, then corporate bonds, more ETFs (of which it already own 50%) and ultimately stocks. Because there is nothing better for the richest asset owners than total economic collapse.

Mid-East Stocks, US Futures Slide As Goldman Warns Of Paris Attacks' Negative Implications For Markets

Following the weakness in the few minutes of after-hours trading on Friday's US session that overlapped with the first headlines from France, we are getting a first glimpse at the posible fallout from the Paris terror attacks. The Middle Eastern stock markets tumbled significantly with Saudi Arabia's Tadawul All Share index down 3% (biggest drop in 3 months) to its lowest since December 2012, and Dubai's FMG Index plunged 3.7% to its lowest since 2014. Short-run implication for the equity market is likely to be negative according to Goldman, with a notably higher risk premium regarding uncertainties about the medium-term political implications.

This All Has A Familiar Ring To It

The recent new highs on the Nasdaq accompanying the surge off the August and September lows have been accompanied by bullish headlines, and it is true the action in some stocks is truly awe inspiring. Yet all the action has an oddly familiar ring to it and it may not be bullish. While most traders today haven't really lived through the 2000 bubble, older hats have institutional memory.

Copper Plunges To Fresh 6 Years Low After Goldman Warns More Pain Ahead, Glencore Slides Back Under 100p

Overnight Goldman released a report titled simply enough "Copper poised to move even lower" which confirmed everything we said a month ago when we warned that the latest "production cut" initiatives by Glencore would have absolutely no impact on the longer-term price dynamics of the metal which has achieved "doctor" status. We were right:

COPPER FALLS 1.8% TO $4,856/TON, REACHING LOWEST SINCE 2009

Euro Crushed By Draghi's Latest "Whatever It Takes" Moment; Fed Speaker Barrage On Deck

The biggest event overnight came from Europe, where Draghi managed to once again jawbone the Euro lower by ober 50 pips when he told European lawmakers in a prepared testimony that downside economic risks are "clearly visible," repeating his October press conference statement, adding that the ECB will reexamine degree of accommodation in December as "inflation dynamics have somewhat weakened." And the statement that crushed the Euro: "If we were to conclude that our medium-term price stability objective is at risk, we would act by using all the instruments available within our mandate to ensure that an appropriate degree of monetary accommodation is maintained." I.e., another "whatever it takes" moment.

Forget Oil, Base Metals Collapse 50% From 2011 Highs

Bloomberg's global commodities index is testing fresh 16 year lows but this is often excused on the basis that it includes crude oil weakness - which will mean-revert higher any day now. Perhaps the bigger, even louder warning signal is directly from the basest of base industrial metals... which are now down 50% from their 2011 "reflate the world" highs.

Global Stocks Fall For 5th Day On Disturbing Chinese Inflation Data; Renewed Rate Hike Fears; Copper At 6 Year Low

The ongoing failure of China to achieve any stabilization in its economy, after already cutting interest rates six times in the past year, and the prospect of a U.S. interest rate hike in December, had made markets increasingly jittery and worried which is not only why the S&P 500 Index had its biggest drop in a month, but thanks to the soaring dollar emerging market stocks are falling for a fourth day - led by China - bringing their decline in that period to almost 4 percent, and the global stock index down for a 5th consecutive day.

Ron Paul: Does The Bell Toll For The Fed?

The failure of the Fed’s policies of massive money creation, corporate bailouts, and quantitative easing to produce economic growth is a sign that the fiat money system’s day of reckoning is near. The only way to prevent the monetary system’s inevitable crash from causing a major economic crisis is the restoration of a free-market monetary policy.

The Recessionary Signals Of A 5% Unemployment Rate

"Historically, the statistical or mathematical properties of the financial markets have shifted as the economic recovery nears full employment (i.e., at about the 5% unemployment rate the contemporary recovery has reached). Traditionally, at this point in the recovery, the stock market suffers more frequent declines, bond yields rise more often, average annualized returns from both asset classes are lower, diversification benefits tend to diminish, and recession risk is enhanced."

The Fly In The Buyback Ointment: Corporate Leverage Is At Record Levels

"Given that we are clearly moving into a higher default environment we believe that equity investors may be inclined not to reward stocks that have large buyback programs. And if this is the case, corporate managers will have a diminished incentive to borrow money to finance buybacks."