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To get a sense of the complete devastation in the world of commodities, consider the curious case of Australia's Isaac Plans coking coal mine, which was valued at $630 million in 2011. It sold on Thursday for $1. it gets worse: based on data from Citi Research, 90% of all M&A that miners did since 2007 has been written off. The commodity bubble has officially burst - feel free to thank China.
Presidential hopeful Bernie Sanders recently raised the ire of both progressives and libertarians with his remarks concerning immigration. In just a few sentences, Sanders manages to demonstrate a hodgepodge of nativist, nationalist, protectionist, and socialist sentiments. But for anyone wondering why he wandered off the progressive narrative on immigration, it’s because protectionist labor unions pay him better than, say, La Raza.
While the Puerto Rican creditors' bargaining power on the island is to put it mildly, negligible, especially after the budget director made the imminent default into a crusade of poor versus rich, saying he won’t redirect cash from its operating budget to make debt payments, an unexpected supporter has emerged thousands of miles from the beleaguered island: New York's socialist mayor Bill DeBlasio. As CBS reports "New York City Mayor Bill de Blasio demanded President Obama and Congress immediately come to the island's fiscal rescue." "It's the federal government's obligation to act, because they can't stand idly by and watch Puerto Rico fail," de Blasio told a crowd of hundreds of Puerto Rico boosters gathered on the steps of City Hall.
As dozens now vie for residence in the big white one of Pennsylvania Avenue, MarketWatch, courtesy of LoanDepot.com and CoreLogic, unveil the homes (since most own more than one) and mortgages of the 2016 presidential candidates. With homeownership rates at multi-decade lows, and the American Dream disappearing for most, it appears it pays to be in government - from Trump Tower and Clinton's Compounds to Bernie Sanders' underwater mortgages and Carly Fiorina's five fireplaces...
Many investors still view gold as a safe-haven investment, but there remains much confusion regarding the extent to which the gold market is vulnerable to manipulation through short-term rigged market trades, and long-arm central bank interventions. First, much of the gold that is being sold as shares, in certificates, or for physical hoarding in dubious "vaults" just isn't there. Second, paper gold can be printed into infinity just like regular currency. Third, new electronic gold pricing — replacing, as of this past February, the traditional five-bank phone-call of the London Gold Fix in place since 1919 — has not necessarily proved a more trustworthy model. Fourth, there looms the specter of the central bank, particularly in the form of volume trading discounts that commodity exchanges offer them.Today, there is no “official” price for gold, nor any “gold-exchange standard” competing with a semi-underground free gold market. There is, however, a material legacy of “real versus pseudo” gold that remains a terrible menace. Buyer beware of the pivotal difference between the two.
- Greek PM keeps lid on party rebellion to pass bailout vote (Reuters)
- Greek Prime Minister Alexis Tsipras Remains Popular Despite Tough Bailout Deal (WSJ)
- Beijing's stock rescue has $800 billion bark, small market bite (Reuters)
- Capital exodus from China reaches $800bn as crisis deepens (Telegraph)
- Why Investors Shy Away From China’s $6.4 Trillion Bond Market (WSJ)
- Oil Rigs Left Idling Turn Caribbean Into Expensive Parking Lot (BBG)
- Bank of America replaces CFO in management shake-up (Reuters)
- The Financial Buzz? Pearson to sell Financial Times (Reuters)
What do El Paso, New York, and Chicago have in common? They are among the top 20 cities from which Americans are fleeing in droves...
If the US economy is truly firing on all four cylinders, then how are events such as the repeat bankruptcy of America's first national supermarket chain, supposed to happen?
Hyperinflation in the U.S. is coming sometime in the next 20 years or so, and this isn't a cry from a Chicken Little, but a conclusion that the analysis strongly suggests. It is possible hyperinflation could happen during the next few years, but that seems unlikely since it would require a series of major crises and political blunders – events unprecedented in the history of the United States. If this led to a corruption of Constitutional rights in the midst of an exaltation of the Executive Branch that resulted in loss of the rule of law, hyperinflation might result. It is much more probable that hyperinflation will be preceded by a long slow decline that will include a protracted period of high inflation, and that the crash of the dollar and hyperinflation will be the final tumble off a looming, steep cliff.
- Greek lawmakers split over bailout as vote looms (Reuters)
- Greek Bailout Rests on Asset Sale Plan That Already Failed (BBG)
- Greece Needs $25 Billion to Get Through August, Scicluna Says (BBG)
- Tsipras Enters Parliament Den to Sell Aid Deal to Greeks (BBG)
- Greece makes samurai bond repayment (FT)
- Iran, World Powers Have Reached Nuclear Agreement (BBG)
- Janet Yellen’s Fed Flounders in Political Arena (WSJ)
It’s not just about Greece, it’s about the whole EU. The Troika thinks that by scaring the living daylights out of the periphery, its power will increase. Germany just killed its golden goose. And boy, is that ever stupid. The main thing here is that Don Corleone was not a psychopath or sociopath, and that’s more than you can say for Schäuble and Dijsselbloem and Juncker and their ilk. While brute force may look attractive and decisive and all, in the end it will be their undoing. The Italians and Spanish and French have noted every word of this, and more. Europe as it is, is already over. Everything from here on in is a mere death rattle.
Hillary Clinton is set to deliver her first economic policy speech in what is sure to be wonderfully leftist 'fair and balanced' populist attack on her financial backers (the banks) in favor of her minions (everyday Americans). The somewhat confusing leaks about the speech suggest growth through tax cuts for small business and government infrastructure spending which would be funded by higher taxes on the wealthy (small businesses) and minimuj wage hikes (ouch small businesses). Grab your popcorn (and the inflight vomit bag) and enjoy...
Conspiracy Fact: How The Government Conducted 239 Secret Bioweapon Experiments On The American PeopleSubmitted by Tyler Durden on 07/11/2015 16:13 -0400
Take a step back and imagine if you were alive in 1950. Five years after the Allies’ glorious victory in World War II, and someone told you the U.S. government was conducting bioweapon experiments on the American public in secret. Not only would you not believe it, you’d think this person was a complete and total lunatic. Now try to imagine what they are undoubtably doing right now.
This much-needed re-set to an economy that serves the many rather than the few is what the Powers That Be are so fearful of. On the surface, everything still looks remarkably stable in the core industrial economies. But surface stability is all the status quo can manage at this point, because the machine is shaking itself to pieces just maintaining the brittle illusion of prosperity and order. In effect, the status quo has greatly increased the system's vulnerability, fragility and brittleness--the necessary conditions for catastrophic collapse--all in the name of maintaining a completely bogus facade of stability for a few more years.
What began as a glitch in pre-market trading turned into the NYSE's longest trading halt since Hurrican Sandy battered the East Coast. The ever-increasing complexity of US equity markets combined with an ever-decreasing pool of greater fools leaves windows open on down days (for it appears these 'glitches' only ever occur on down days) for markets to break. While NYSE traders defended the very market structure they have abhorred in the past as evidence that today was "not a failure," we can't help but find CNBC's Scott Wapner's ignorant remarks that "if retail investors want low cost liquid trading they are going to have learn to live with it," the perfect post-mortem for a rigged system brimming with confident insiders ever excited to take mom-and-pop's money.