Mark To Market

Carl Icahn Has Never Been More Short The Market, Is Pressing For A Crash

there was renewed speculation if Icahn had given up on his record bearish bet. So when overnight IEP released its latest 10-Q, we were eager to find out if Carl had unwound his record short, or perhaps, added more to it. What we found is that  one quarter after having a net short position of -149%, as of June 30, Icahn's net position was once again -149%, or in other words, he has once again never been shorter the market.

With Over $13 Trillion In Negative-Yielding Debt, This Is The Pain A 1% Spike In Rates Would Inflict

There is now $13 trillion of global negative-yielding debt. And, as the WSJ writes, even a small increase in interest rates could inflict hefty losses on investors. With the 2013 "taper tantrum" the Fed sparked a selloff as it discussed ending its bond-buying program known as quantitative easing. A repeat "would be very painful for a lot of people" said J.P. Morgan. This is just how painful.

It's Not The Brexit Stupid!

Brexit is just a symptom of the disease eating away at the fabric of our global economy. Lehman’s collapse was not the cause of the 2008 worldwide financial crisis. It was just the excuse for something that was going to happen no matter what. Bad debt, bad bankers, bad regulators, bad politicians, media cheer leading, and a willfully ignorant populace were a toxic combination – and it’s worse today.

Dallas Fed "Responds" To Zero Hedge FOIA Request

Two weeks ago we, in collaboration with several readers, requested an official response from the Fed through a Freedom Of Information Act submission. Surely if the Fed would go so far as to call us liars, it would have no problem either responding or providing the required information. This is what we got back.

If You Don't Conform To The Crowd Now - You're A "Radical"

They’ve spiked the punch bowl with so many lies. Home prices always go up. The debt doesn’t matter because we owe it to ourselves. We can always print more money. None of this nonsense is true. But the financial establishment tells us so. Big media repeats it over and over again. Eventually hundreds of millions of people believe it. And anyone who dares question the sanctity of this system is labeled a radical.

Fantasy? North Korea's "Hangover-Free Alcohol" Or America's "Consequence-Free Debt"

While we may poke fun at North Koreans’ gullibility, frankly we don’t find the idea of ‘hangover-free alcohol’ any dumber or less deceptive than the idea of ‘consequence-free debt’. Or the idea that you can print your way to prosperity. Hangover-free alcohol is pretty silly. But in the West, we believe the biggest lies of all...

 

Wells Fargo Is Bad, But Citi Is Worse

"While we are taking what we believe to be the appropriate reserves for that, I'm just not prepared to give you a specific number right now as far as the amount of reserves that we have on that particular book of business."

Why It Absolutely, Positively Does Not Matter

Watching Hilary Clinton debate Bernie Sanders- or like lastnight, Jeb Bush against Donald Trump - doesn’t strike us as too different from when Hulk Hogan faced off against Andre the Giant in Wrestlemania. In fact, it’s essentially the same with elections today, it's "political entertainment." It’s all fake. It’s sound bites, jabs and jibes, and pointless banter completely devoid of any real substance. But the truth is, none of it really matters, the United States objectively speaking is far past the point of no return.

The Most Devious Liars In The Room

There were a few different stories coming out over the last few days that reveal the true nature of government and the apparatchiks who use disinformation, devious machinations, fraudulent accounting, and taxpayer money to cover up their criminality, lies, and the true state of the American economy. The use of government accounting tricks to obscure the truth about our dire financial straits is designed to keep the masses sedated and confused.

"The Bankers Have Gone Through This Before. They Know How It Ends, And It’s Not Pretty"

Oil companies have sold $61.5 billion in stocks and bonds since January as oil prices have tumbled. However, the fees geneated are a tiny fraction of the bank's real exposure to the energy sector, at over $150 billion. So have the banks learned their lesson?  "The bankers have gone through this before,” says Oscar Gruss’s Meyer. “They know how it works out in the end, and it’s not pretty." Then again, perhaps banks are just sailing on an ocean of liquidity allowing them to postpone the day of Mark to Market reckoning, especially since this time, everyone is in it together....