Germany

Louisiana Officials Demand That Self-Reliant Locals Stop Surviving The Flood Without Permission

Around the world, governments have recently been issuing an unsettling call for their citizens to become more self-reliant. Just this week, the governments of both Germany and Czechoslovakia warned that people should be  “be prepared for the worst case possible scenario.” But here in the United States, just the opposite is happening. Our government seems to have an unquenchable thirst for cracking down on those who take responsibility for themselves. There is an abundance of evidence of this in Louisiana.

Stock Market Bubble Will Pop, Social Mood Will Get Extremely Ugly

Buying equities will put additional pressure on corporate CEOs to cut expenses and to postpone investments, fostering even greater Main Street resentment toward the financial elite. Consumer confidence won’t rise as consumption and economic growth stagnate. Having so clearly sided with owners of capital, rather than the employees of capital, global central banks are likely to become an easy target for populist ire.

With All Eyes On The ECB, Catatonic Global Markets Remain In State Of Near Paralysis

As the market's comatose trading range continues with no notable moves for nearly 40 consecutive days, there is some hope volatility may return after today's main event, the ECB's announcement due in just two hours, when Mario Draghi may surprise the market in either direction. As of today, the S&P500 has held in a band of 1.5% for 39 days, the narrowest ever for that length of time.

What Wall Street Expects From The ECB, And How Will The Market React

With the ECB running dangerously low on bonds to monetize even as its QE program has failed to spur inflation, Mario Draghi may have no choice but to unveil drastic changes to the central bank's QE programm tomorrow. Here are the options available to the central banker, and some ideas of how markets may react.

Italy Funding Panic? Target2 Liabilities Unexpectedly Soar To Record High

In the latest Target2 monthly update, Bank of Italy's liabilities toward other eurozone nation soared by €35 billion in August, just shy of the biggest monthly increase on record, and reached an all time high of €327 billion, surpassing the previous records set in 2012, just prior to Draghi's infamous "whatever it takes" speech.

Negative Rates & The War On Cash, Part 2: "Closing The Escape Routes"

History teaches us that central authorities dislike escape routes, at least for the majority, and are therefore prone to closing them, so that control of a limited money supply can remain in the hands of the very few. The existence of escape routes for capital preservation undermines the viability of the banking system, which is already over-extended, over-leveraged and extremely fragile. In the 1930s, gold was the escape route, so gold was confiscated. This time cash serves that role...

Eerie Calm Continues: Futures Flat Ahead Of Apple's Latest Product Launch

The unprecedented period of low volatility, in which the S&P hasn't moved more than 1% in either direction, is now well into its 40th day and the muted overnight session has done nothing to put this streak in jeopardy with S&P futures once again hugging the flatline ahead of the widely expected 3:30pm ramp. European stocks were likewise little changed while Asia was fractionally higher depite a modest dip in the Nikkei.

The Swiss Begin To Hoard Cash

"Because of the low interest rate level, we note increasing demand for insurance solutions for the storage of cash," said Philipp Surholt at Zurich Insurance Group AG, among underwriters reporting a surge in such requests. "We’re seeing demand for coverage for sums ranging from 100 million to 500 million francs."

"No Reason" Why ECB Shouldn't Buy Stocks: Peterson Institute

"I don’t see a reason [for the ECB not to buy stocks]" said Joseph Gagnon, senior fellow at the Peterson Institute for International Economics. "It isn’t obvious to me why a central bank wouldn’t always want a diversified portfolio, including equities."

Frontrunning: September 6

  • G20 a success for China, but hard issues kicked down the road (Reuters)
  • Apple’s New iPhones Arrive, as Glow Fades (WSJ)
  • Philippines scrambles to soothe tensions after insult to Obama (Reuters)
  • CNN: Nine weeks out, a near even race (CNN)
  • More Records Releases Loom for Hillary Clinton (WSJ)

Traders Return From Vacation To Find S&P Futures Flat, Oil And Dollar Lower, Amid Flurry Of M&A

The return from summer holidays has started in much the same way as we left off August, with another subdued session that has seen European stocks little changed, Asian shares advance and S&P futures are modestly in the green amid a flurry of M&A. The US dollar weakened, with the Bloomberg Dollar Index down 0.2% for the 2nd day in a row as prospects for a U.S. interest-rate hike this month remained subdued.