Freddie Mac

Is Obama Juicing Government Spending To Get Hillary Elected?

"They know the economy is in the shitter and the average American is not better off than they were four or eight years ago. As a last ditch effort to keep this tsunami of history from rolling over them and sweeping away the last vestiges of their corrupt rule, they have ramped up the printing presses and government spending to try and make the masses believe the economy is hitting on all cylinders. It will fail, and the peasants will be coming for them."

US Futures Pressured By European Weakness; Oil Flat, Dollar Rises

For the fourth day in a row, US traders arrive at their desks with US equity futures largely rangebound if with a modestly heavy bias, pressured by some recent weakness in European stocks, where DB continues to post modest gains following yesterday's report that Germany is pursuing "discrete talks" over the fate of the German lender. Oil has regained earlier losses following comments by Algeria's oil minister who said that OPEC could cut 1% more than agreed upon while sterling continues to slide on growing concerns of a "hard Brexit."

Frontrunning: October 5

  • ECB 'taper' talk hits stocks, sterling hits 31-year low (Reuters)
  • Crude Rises to Three-Month High After U.S. Stockpiles Plunge (BBG)
  • Gross Says He Shortened Duration on Europe After Taper News (BBG)
  • Chicago Fed's Evans 'fine' with December hike if data stays firm (Reuters)
  • Euro zone business growth at 21-month low in September (Reuters)
  • Deutsche Bank Brings Too-Big-to-Fail Quandary Home to Merkel (BBG)

Crude Declines As OPEC Deal Doubts Emerge; Futures Roll Over

After oil soared over 5% yesterday, its biggest jump since April, overnight skepticism and doubts have emerged about the viability and compliance with the deal, coupled with a boost in production by non-OPEC producers, and as a result WTI has dipped back under $47, down 0.5%, suggesting that the OPEC surge may be short-lived, and modestly pressuring US equity futures.

Perry Capital Shutting Down His Iconic Flagship Fund

The writing was on the wall three weeks ago when we reported that iconic hedge fund Perry Capital had lost some 60% of his AUM as LPs were rushing to withdraw their money.  So it is probably not very surprising that having lost more than half his assets moments ago Bloomberg reported that Perry's flagship fund is shutting down: PERRY CAPITAL TO CLOSE FLAGSHIP FUND AFTER ALMOST THREE DECADES

"Home Prices Are Out Of Hand Again"

"Since 1999 year-end through 2015 home prices have risen 76% while household mean real income has grown less than 2%; the millennium-to-date gap between the two growth rates peaked at 84% during 2005-2006 and has risen back to 74% as of 2015 year-end. Gap at year-end 2007 was 75%."

"The Big Short's" Steve Eisman Reveals What The Next Big Short Is

Asked to name the next big short, Eisman initially declined. “I’m not in such a rush to do it again,” he said. “It took years off my life.” Then he relented, saying, “The only big short out there is when the world loses confidence in QE.”

US Futures, European Stocks Rebound, Bonds Fall Ahead Of US Data Deluge

The overnight session started with more weakness out of Asia, where chatter that the BOJ may end up doing nothing despite all the trial balloons (as we hinted yesterday), sent the USDJPY sliding, pushing the Nikkei lower, leading to a 7th consecutive decline in the Topix, the longest such stretch since 2014 even though the BOJ is now actively buying a record amount of ETFs. However, the modest dip in S&P futures and European stocks proved too much for BTFD algos, and risk promptly rebounded.