Apple

On October 22, 1981, the government of the United States of America accumulated an astounding $1 TRILLION in debt. At that point, it had taken the country 74,984 days (more than 205 years) to accumulate its first trillion in debt. It would take less than five years to accumulate its second trillion. And as the US government just hit $18 trillion in debt on Friday afternoon, it has taken a measly 403 days to accumulate its most recent trillion. There’s so much misinformation and propaganda about this; let’s examine some of the biggest lies out there about the US debt...

If you notice that display racks this holiday season are nicely scented, it’s not just shops are tidier at year’s end. Scents like citrus and floral can make you linger and stay alert in the shop to buy more. The use of scent is just one of four sensory marketing tricks being used on us by shops eager for more sales. Collated in the new infographic below you can find a number of scientific studies that indicate what we see, hear or touch affect our buying decisions. Do you know why Apple Store leaves its notebook display half-open, or why you suddenly crave for a tropical vacation while inside Bloomingdale’s?

Over four centuries ago, the Dutch East India Company made history as the world’s first IPO. Known as VOC in the Netherlands, the company was one of the most successful ventures in the last several hundred years. When adjusted for inflation, its highest market capitalization would be worth over $7 TRILLION today (i.e. ten times the size of Apple).

Earlier today, just after the market open, the one company that everyone had once again piled into, and which as of September 30 was the most held company by the hedge fund community with at least 175 "smart money" institutional fans based on expectations that with every other stock and asset becoming increasingly illiquid, at least this one would preserve its liquidity come hell or high water, flash crashed. The company is Apple, So what happend? Between 9:49:54 and 9:50:43 Eastern, AAPL plunged from nearly 6%, from $117.69 to $111.27, a moved which wiped out one Transcanada (or one Travelers, or one Lukoil, or one Carnival, or one Christian Dior, or one Hyundai Motor Company, or one Takeda, or one State Street) in market cap.

• Moody’s Downgrades Japan’s Credit Rating (WSJ)
• China Factory Gauge Drops as Shutdowns Add to Slowdown (BBG)
• Euro zone factory growth stalls in November as new orders sink (Reuters)
• Espírito Santo Faces Money-Laundering Investigations (WSJ)
• Oil at $40 Possible as Market Transforms Caracas to Iran (BBG)
• Hong Kong warns protesters not to return after clashes close government HQ (Reuters)
• Bond Secrets Decoded 9,539 Miles From Wall Street in Lot (BBG)
• Ruble Rally Turns to Rout as Fortunes Tied to Sinking Oil (BBG)
• Loans Made in Blink as Banks, Funds Vie for LendingClub Clients (BBG)

• Oil Seen in New Era as OPEC Won’t Yield to U.S. Shale (BBG)
• Alberta Producers With World’s Cheapest Oil Face Cascading Woes (BBG)
• Bundesbank’s Weidmann Rejects Calls for German Stimulus Plan (WSJ)
• Google Should Be Broken Up, Say Euro MPs (BBC)
• Calm comes to troubled Ferguson; protests dwindle across U.S. (Reuters)
• Russia’s Banks Feel Capital Squeeze in Grip of Sanctions (BBG)
•  Italian Unemployment Rate Rises to Record, Above Forecasts (BBG)

It's not a bubble. Until it is...

• National Guard, police curb Ferguson unrest as protests swell across U.S. (Reuters)
• Ferguson Reaction Across U.S. Shows Complex Racial Split (BBG)
• Democratic senator Schumer: Democrats Screwed Up By Passing Obamacare In 2010 (TPM)
• Veto threat derails Reid tax deal (Hill)
• Justice Department Investigating Possible HSBC Leak to Hedge Fund (WSJ)
• Merkel hits diplomatic dead-end with Putin (Reuters), and yet...
• Merkel Said to Reject Ukraine NATO Bid as Rousing Tension (BBG)
• HSBC, Goldman Rigged Metals’ Prices for Years, Suit Says (BBG)

Apple is not Microsoft.. and Netflix has lost its momo mojo...

The “unintended consequences” of the negative interest rate policy will vastly outweigh the perceived advantages of any short term boost to economic activity they may provoke. Given that the failure of these interventions is already absolutely certain, we must be prepared for even more interventions to “fix” the failures produced by the previous ones. Many modern-day intellectuals appear quite keen on abolishing the market economy and replacing it with some form of command economy (just as long as their personal plans are implemented of course). They should be careful what they wish for.

Looking for answers to both financial safety as well as financial freedom in the same light or viewpoint where it seems one only needs to “think like a billionaire” or “tweak” or “slightly modify” perceptions on how one approaches these financial markets today – will hurt more than it will help. The Wall Street everyone believes they are dealing with today is just in name and memory. What made sense just 6 years ago not only doesn’t but rather if you try to apply any sense that resembles “common sense” you might as well be asking the Cheshire cat for a more straight answer. "How exactly are you handling the stresses and strains having to basically push sound fundamental theories or market underpinnings aside and now trade and position money at risk based solely on what some Central Bank will do next?" This is the avenue I wish Tony had driven or sought.

"We are living in an aberrational world. It’s all driven by an orgy of money printing...it sure feels to me that we’re nearing the day that it spins out of control. By the end of this year or by the start of next year, without QE, the market is going down."

"To maintain your sanity, you need to turn off the hype machines of some of the financial media like CNBC."

They may be able to engineer a stock market rally to further enrich themselves, but they can not propel the real economy of 318 million people. Our consumer society is dying – asphyxiated by debt – shorter of breath and one day closer to death. I’d love to offer some sage advice on how to fix this problem, but it’s too late. Too many people missed the starting gun.

• Yellen Inherits Greenspan’s Conundrum as Long Rates Sink (BBG)
• West African Mining Projects Take Hit From Ebola Crisis (WSJ)
• Saudi oil policy uncertainty unleashes the conspiracy theorists (Reuters)
• Senate Rejection of Keystone XL Measure Sets Up 2015 Showdown (BBG)
• Ferguson, Missouri, remains on edge ahead of grand jury report (Reuters)
• Putin Said to Stun Advisers by Backing Corruption Crackdown (BBG)
• Italian ‘Invasion’ Has Swiss Fuming as Immigration Vote Looms (BBG)
• Apple and Others Encrypt Phones, Fueling Government Standoff (WSJ)

• Scuttled deals worth $580 billion put hedge funds on back foot (Reuters)
• Mounting Pressure on OPEC Spurs More Wagers on Oil Rally (BBG)
• It's not just US real estate: Chinese Students at U.S. Universities Jump 75% in Three Years (BBG)
• Frankfurt Open for Yuan Clearing as Liquidity Rises (BBG)
• Obama defends healthcare law after adviser criticism (Reuters)
• Michael Hasenstab Bets Big in Controversial Places (WSJ)
• Facebook seeks foothold in your office (FT)
• Russia Seen as Greatest Threat in Poll as Oil Erodes Putin Power (BBG)
• Falling Oil Prices Test OPEC Unity (WSJ)