"In the past 12 months investors traded $18.2 trillion worth of ETF shares. For perspective, that means the amount of dollars exchanging hands through ETFs is now more than the U.S. gross domestic product, which stands at $17.4 trillion," Bloomberg reports. Or, put differently, the financial apocalypse draws near.
The purpose of this article is to outline, with facts, large global structural issues that everyone, bulls and bears alike, should be fully aware of. This article will focus on much larger structural issues that have been building for years and decades. And no this article is not so much about central banks, debt issues, Greece, China, deficits, etc. While all these are important as part of the overall picture, they are mere current symptoms of a much larger issue that is at the core of all that is already in play and will only deepen in our societies in the decades to come.
The FBI And DOJ Get Involved: Hillary Clinton Sent Confidential Emails From Her Personal Email AccountSubmitted by Tyler Durden on 07/24/2015 20:12 -0400
It's not that Donald Trump needed much help in his juggernaut campaign across the GOP presidential primary with his lead at last check in the double digitts, but moments ago the flamboyant billionaire got an unexpected present from the WSJ which may have just crippled the chances of his biggest democrat competitor as well, Hillary Clinton. WSJ reports that according to an internal government review Hillary Clinton, as former Secretary of State, "sent at least four emails from her personal account containing classified information during her time heading the State Department."And now, at long last, it appears that both the FBI and the DOJ are finally getting involved.
It is unclear if Clinton will received $250,000 for today's speech in New York which is expected to outline Blackrock's the presidential candidate's new tax agenda (profiled previously), but it is assured that any questions relating to the just broken news that Clinton lied about not sending any confidential emails will be duly muted.
"Hillary Clinton will propose a revamp of capital-gains taxes that would hit some short-term investors with higher rates, part of a package of measures designed to prod companies to put more emphasis on long-term growth," WSJ reports. Interested to know who might be pulling the strings behind the scenes? Read on...
Junk-rated Chicago is paying nearly 8% to issue debt these days and although the city's fiscal woes are set to persist, some asset managers are taking the plunge ahead of a key court ruling scheduled for Friday.
"They are going to be toast. It will be one of our first levels of shorting the moment we start to see cracks, because it’s ripe with retail, emotional investors."
Large caches of data stolen from online cheating site AshleyMadison.com have been posted online by an individual or group that claims to have completely compromised the company’s user databases, financial records and other proprietary information (including profiles with all the customers’ secret sexual fantasies). The hacker group "The Impact Team" manifesto concludes, "too bad for those [37 million] men, they’re cheating dirtbags and deserve no such discretion."
Searching for a refuge in today's uncertain markets? BlackRock has a solution...
On Wednesday, Carl Icahn and Larry Fink engaged in an epic debate about the role ETFs play in perpetuating systemic risk. Icahn, taking a page from the Tyler Durden playbook, talks phantom liquidity before calling BlackRock "a dangerous company", and opining that Fink and Janet Yellen are "pushing the damn thing off a cliff."
- EU in last-ditch bid to Greece, urges "yes" vote to bailout (Reuters)
- In? Out? In between? A Greek legal riddle for EU (Reuters)
- Tsipras Says EU Won’t Eject Greece as Cost ‘Immense’ (BBG)
- Empty Greek ATMs Force Tourists to Stiff Santorini Cabbies (BBG)
- Anti-austerity protests in Greece as bank shutdown bites (Reuters)
- Puerto Rico governor calls for bankruptcy; adviser says island 'insolvent' (Reuters)
- Puerto Rico Urges Concessions From Creditors (WSJ)
- Hilsenrath - For Fed to Delay Rate Hikes, Global Tumult Would Need to Infect U.S. (WSJ)
"Black Friday. China shares dive 7.4%... How much further will it fall after this massacre?"
"It's a do-or-die moment for all investors... If retail investors become skittish now, panic selling will continue next week."
Last week the government reported personal income and spending for April. After months of blaming non-existent consumer spending on cold weather, shockingly occurring during the Winter, the captured mainstream media pundits, Ivy League educated Wall Street economist lackeys, and Keynesian loving money printers at the Fed have run out of propaganda to explain why Americans are not spending money they don’t have. The corporate mainstream media is now visibly angry with the American people for not doing what the Ivy League propagated Keynesian academic models say they should be doing. An economy built upon the consumption of iGadgets, Cheetos, meat lovers stuffed crust pizza, and slave labor produced Chinese baubles, along with the production of enough arms to blow up the world ten times over, and the doling out of trillions to the non-productive class, is doomed to fail.
"It’s about time we start getting worried about possibly the next [financial crisis]," warns BlueMountain's James Staley explaining that, "the lack of liquidity that currently exists today, is something that people on the buy side, sell side and regulatory side need to be focused on." In an effort to quantify just how big that 'issue' is, Bloomberg reports that the U.S. corporate-bond market has ballooned by $3.7 trillion during the past decade, yet, as Citi's Stephen Antczak warns, almost all of that growth is concentrated in the hands of three types of buyers, "we used to have 23 types of investors in the market. Now we have three. In my mind, that’s the key driver."