Fannie Mae

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."

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)

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.”

Frontrunning: August 11

  • Stocks choppy, Kiwi soars after rate cut (Reuters)
  • Putin discusses Crimea security after alleged Ukrainian incursions (Reuters)
  • IEA Sees Oil Glut Easing (BBG)
  • Meanwhile: more oil - Iraq, oil companies agree to restart investment, boost output (Reuters)
  • U.S. Drillers Need $60 Oil to Stage Real Comeback, IEA Say (BBG)

Musical Chairs

Economics is a bit like musical chairs. In a recession, the economy takes a hit and there are some casualties. Some players fail to get a chair in time and are out of the game. The game then goes on without them. The economy eventually recovers. But a depression is a different game entirely...