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Gold In 2016: "Economic Power Is Shifting"
Submitted by Tyler Durden on 01/09/2016 18:15 -0500An unseen bubble at the heart of the financial system is deflating with unknown consequences. When bubbles deflate, and here we are talking about one in the hundreds of trillions, bad debts are usually exposed. Even though much of the reduction in outstanding OTC derivatives is due to consolidation of positions following the Frank Dodd Act, much of it is not. When free markets reassert themselves, and they always do, the disruption promises to be substantial. We appear to be in the early stages of this event. If so, demand for physical gold can be expected to escalate rapidly as a financial crisis unfolds.
Angry Bond Insurers Sue Puerto Rico Over "Clawback" Boondoggle
Submitted by Tyler Durden on 01/09/2016 15:15 -0500“The commonwealth has committed itself to a ‘scorched earth’ strategy of blaming its fiscal and structural problems on lenders, Congress and others, in an effort to deflect responsibility and obtain retroactive application of bankruptcy laws.”
Russell Napier Explains How The Decline Of The Yuan Destroys Belief In Central Banking
Submitted by Tyler Durden on 01/07/2016 20:28 -0500If you had not noticed, 2016 has begun with gold and the USD rising simultaneously. This is different and important. This is very positive for gold and very bad for the world...
As The Saudi Economy Implodes, A Fascinating Solution Emerges: The Aramco IPO
Submitted by Tyler Durden on 01/07/2016 15:17 -0500
Earlier today everything changed when Saudi Arabia's unveiled what may be a stunning Hail Mary: one which is great news for the suddenly liquidity challenged Saudi government, and is very bad news for the future price of oil. According to the Economist, Saudi Arabia is contemplating taking Saudi Aramco - arguably the world's most valuable company - public. Here are the implications.
Saudi Devaluation Odds Highest In 20 Years, Kingdom Now More Likely To Default Than Portugal
Submitted by Tyler Durden on 01/07/2016 12:02 -0500Saudi Arabia, which entered 2015 with virtually no debt and an FX reserve war chest that amounted to around three quarters of a trillion dollars, is now viewed as less creditworthy than a country where a coalition of socialists, left-wingers, and communists just overthrew the government.
DVA Is Dead: Banks Will No Longer "Profit" From Collapsing
Submitted by Tyler Durden on 01/06/2016 13:50 -0500The debt valuation adjustment, or DVA, will no longer be included in net income, according to revisions to the fair-value measurement standard published by the Financial Accounting Standards Board Tuesday. The DVA rule increased net income when a bank’s bonds tanked, on the theory that the firm could buy back its bonds at a lower price and benefit from the decline in value.
10 Key Energy Trends To Watch For In 2016
Submitted by Tyler Durden on 01/06/2016 12:55 -0500Energy investors got clobbered in 2015, and are hoping for things to turn positive as we head into the New Year. What can we expect in 2016? Here is a rundown of some key trends to watch for...
Global Corporate Debt is Coming Unglued
Submitted by testosteronepit on 01/06/2016 00:52 -0500Default Rate Highest since 2009, US Distress Ratio Soars.
Central Bank Money Printing - The Rotten Philosophy That Lies Beneath
Submitted by Tyler Durden on 01/05/2016 21:35 -0500Taking away from the government its power of compelling the citizenry to accept money that it monopolistically controls and abuses may serve as an important legal and economic change to force the government and those who live at its spending trough to face the reality of the welfare state’s ideological and fiscal bankruptcy before it is too late to avert a complete collapse of the society.
The Shale Defaults Begin Here: Banks Quietly Shrink These 25 Companies' Credit Facilities
Submitted by Tyler Durden on 01/05/2016 19:27 -0500Here are 25 deeply distressed companies, whose banks we found have quietly shrunk the borrowing base of their credit facilities anywhere from 6% in the case of Black Ridge Oil and Gas to a whopping 51% for soon to be insolvent New Source Energy Partners.
Nomi Prins' Financial Road Map For 2016: "The Potential For Chaotic Fluctuations Is Greater Than Ever"
Submitted by Tyler Durden on 01/05/2016 18:15 -0500- Bernie Sanders
- Bond
- Brazil
- Capital Markets
- Central Banks
- China
- Circuit Breakers
- Corruption
- default
- European Central Bank
- Excess Reserves
- Federal Reserve
- Fitch
- Greece
- Investment Grade
- Iran
- Italy
- Janet Yellen
- Japan
- Mexico
- Monetary Policy
- None
- OPEC
- Portugal
- Recession
- recovery
- Saudi Arabia
- Unemployment
- US Dollar Index
- Volatility
- Yuan
We are currently in a transitional phase of geo-political-monetary power struggles, capital flow decisions, and fundamental economic choices. This remains a period of artisanal (central bank fabricated) money, high volatility, low growth, excessive wealth inequality, extreme speculation, and policies that preserve the appearance of big bank liquidity and concentration at the expense of long-term stability. The potential for chaotic fluctuations in any element of the capital markets is greater than ever. The butterfly effect - the flutter of a wing in one part of the planet altering the course of seemingly unrelated events in another part - is on center stage.
The Big Short is a Great Movie, But...
Submitted by rcwhalen on 01/05/2016 11:00 -0500- Alan Greenspan
- Apple
- Arthur Levitt
- Bear Stearns
- Bond
- CDS
- Commodity Futures Trading Commission
- Corruption
- Countrywide
- Credit Default Swaps
- default
- Federal Reserve
- Gretchen Morgenson
- Housing Market
- Institutional Investors
- Lehman
- Lehman Brothers
- Market Share
- Meltdown
- Michael Lewis
- Morgan Stanley
- Mortgage Loans
- NASDAQ
- New Century
- New York Stock Exchange
- None
- OTC
- OTC Derivatives
- program trading
- Program Trading
- Subprime Mortgages
- Wachovia
- Washington Mutual
Derivatives like credit default swaps turned a mere bubble in the US housing market into a global financial catastrophe...
For Kyle Bass This Is "The Greatest Investment Opportunity Right Now"
Submitted by Tyler Durden on 01/04/2016 23:47 -0500"Given our views on credit contraction in Asia, and in China in particular, let's say they are going to go through a banking loss cycle like we went through during the Great Financial Crisis, there's one thing that is going to happen: China is going to have to dramatically devalue its currency."
"It's Coming To A Head In 2016" - Why Bank of America Thinks The Probability Of A Chinese Crisis Is 100%
Submitted by Tyler Durden on 01/04/2016 21:46 -0500"It seems to us that the government’s policy options are rapidly narrowing – one only needs to look at how difficult it has been for the government to hold up GDP growth since mid-2014. A slow-down in economic growth is typically a prelude to financial sector instability. Putting it all together, it seems to us that many of these conflicts may come to a head in 2016."
The Tragicomedy Of Self-Defeating Monetary Policy
Submitted by Tyler Durden on 01/04/2016 21:25 -0500Bill Dudley and the Federal Reserve (Fed), in their efforts to influence economic growth may have created a speculative and consumption driven environment that is crushing productivity growth. Ingenuity, not debt, made America an economic powerhouse. If we are to resume down that path we need the Fed to end their “self-defeating” policies and in its place we must demand ingenuity from them. The Fed, along with government, needs to properly incent productivity. The Fed should start this arduous task by removing excessive stimulus which will take the speculative fervor out of markets and allow asset bubbles to deflate.




