• Monetary Metals
    07/28/2014 - 02:38
    Notice the “icicles” dripping all over the place? They occur at different times of the day. What are they? Each one is a brief but dramatic price drop.

Free Money

testosteronepit's picture

But Wait, There Are A Few Differences Between Amazon and the US Postal Service





Amazon is Exhibit A of how the Fed’s free money for Wall Street and corporate mastodons is destructive to the rest of the economy.

 
Tyler Durden's picture

Did The "Dash For Trash" Just End?





For almost three years there has been one recurring simple strategy to outperforming the market - find the worst company you can, and buy its stock with both hands and feet... As we have discussed numerous times, the massive outperformance of "weak balance sheet" companies over "strong balance sheet" companies - the absolute sign of a massive mal-investment boom - has been a straight line to profits with hardly a hiccup since the Fed unleashed QE2. However, the last week or so, as geopolitical risks rise and it appears ever more likely that the Fed's free money pipe will dry up, the dash-for-trash has reversed. The last 5 days saw "strong" companies outperform "weak" companies by the most in 3 years... something is changing.

 
Tyler Durden's picture

Janet Yellen Testifies About The Fed's Dovish Future - Live Feed





Fed Chair Janet Yellen will provide Congress with an update on the state of the economy, how rosy the future is, why she needs to keep rates lower for longer, and that there are no bubbles (oh apart from in bonds which everyone should sell because we need the collateral). These are her first comments since the FOMC press conference in mid-June and stocks have soared since then (as bond yields have tumbled) and she will have to tread a fine line between exuberant over headline job improvements and the need to keep over-inflated bubbles pumped full of cheap/free money for longer...

 
EconMatters's picture

Fed Officials Trying to Warn Bond Markets





Market participants are far too levered up, all on the same side, and well behind the monetary normalization curve of when the first rate hike is actually going to occur. 

 
Tyler Durden's picture

Time For Regime Change At The Eccles Building: Interest Rate Pegging Is Destroying Capitalism





Maybe its time for a new version of the old regime at the Fed. That is, for the Eccles Building to eschew interest rate-pegging and ZIRP entirely, and thereby allow financial markets to once again engage in honest price discovery and two-way trading; and to allow the natural business cycle to meander along its own capitalist path as determined not by the 12 members of the monetary politburo, but the 317 million consumers, producers, investors, entrepreneurs and even speculators who comprise the real main street economy.

 
Tyler Durden's picture

Neofeudalism's Tax Donkeys (Yes, You) And The Battle For Control Of Resources





Those who own the resources and influence the political control of those resources are the New Nobility in a pernicious Neofeudalism enforced by the very government that claims to serve the debt-serfs and tax donkeys.

 
Tyler Durden's picture

Why Killing The Ex-Im Bank Is Crucial To The Future Of Capitalism





The overpowering and incessant statist economic management of the American economy, as reflected in the Ex-Im extension mobilization now underway, is causing the engines of capitalist prosperity to shutdown. The main culprit, of course, is our monetary central planners in the Eccles Building. But they are only the leading edge - the exemplar that tells Washington day in and day out that without constant ministrations by agencies of the state, our capitalist economy would continuously under-preform and tumble into the ditch. So what is at stake in the Ex-Im battle is the future of market capitalism itself. If Washington lacks the capacity to say no to the shareholders of a few big US corporations that can be counted on one hand, then the statist predicate will triumph finally and for ever more.

 
Tyler Durden's picture

How Recession-Proof Is Your Job Sector?





History suggests that previously sound assumptions about financial security and recession-proof sectors may not apply in the next recession.

 
Tyler Durden's picture

Turbo Tuesday Pre-Ramp Missing As Earnings Season, Brazil-Germany Set To Kick Off





Poor algos: after they got no love on Monday from the overnight USDJPY selling team which took the all important pair back to the 200 DMA, today, inexplicably (it is a Tuesday after all, and if one can't frontrun a rigged market surging higher on Turbo Tuesday may as well throw in the towel on free money and learn about fundamental analysis) the same overnight USDJPY selling team has pushed the key carry pair to below the 200 DMA, and has dragged US equity futures lower with it for the second day in a row.

 
Tyler Durden's picture

Ukrainian Journalist: "Let's Borrow From The US Constitution; They're Not Using It Anymore"





Many in Ukraine are talking about major revisions to the Constitution (leading one local journalist to ask – “Why don’t we use the American Constitution? It was written by really smart guys, it has worked for over 200 years, and they’re not using it anymore…”) He’s right. Much of the West, in fact, has descended into the same extractive system as Ukraine. There’s a tiny elite showering itself with free money and political favors at the expense of everyone else. Ukraine may be in the midst of turmoil right now, but they at least hit the big giant reset button and are looking to build something new. The West, meanwhile, continues down its path of more debt, more money printing, more regulations, and less freedom. How long can this really go on without consequence?

 

 
Tyler Durden's picture

(In)Dependence Day 2014: Freedom From Pain, Or Freedom From Dysfunction?





Having surrendered our independence for the quick, easy fix, we will inevitably surrender our health, liberty and freedom.

 
Tyler Durden's picture

Is This A Self-Sustaining Recovery Or As Good As It Gets?





Opinions about the U.S. economy boil down to two views: 1) the recovery is now self-sustaining, meaning that the Federal Reserve can taper and end its unprecedented interventions without hurting growth, or 2) the current uptick in auto sales, new jobs, housing sales, etc. is as good as it gets, and the weak recovery unravels from here. The reality is that nothing has been done to address the structural rot at the heart of the U.S. economy. You keep shoving in the same inputs, and you guarantee the same output: another crash of credit bubbles and all the malinvestments enabled by monetary heroin.

 
Tyler Durden's picture

The Inevitable Stock Market Reversal: The New Normal Is Just Another Bubble Awaiting A Pop





Is the New Normal of ever-higher stock valuations sustainable, or will low volatility lead to higher volatility, and intervention to instability? Though we're constantly reassured by financial pundits and the Federal Reserve that the stock market is not a bubble and that valuations are fair, there is substantial evidence that suggests the contrary.

 
Tyler Durden's picture

Risk eVIXeration Sends Stocks To New Record-er Highs





The USD is unchanged; Commodities are unchanged; and Treasury yields are up only 2-3bps... but that didn;t stop July 1st from being a banner day for US equity markets (on the back of missed PMI and ISM data). The Dow, Russell 2000, and S&P closed at record highs but sadly the Dow missed out on 17,000 by a mere 1.5 points (despite the best VIX and AUDJPY manipulation $189 billion of repo liquidity free money can buy). Stocks got their start with yet another epic short squeeze at the open then ramped higher thanks to carry to record-er highs; stalling when it seemed Dow 17,000 was elusive. VIX traded with a 10-handle once again.

 
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