New York City
In what may be a first in at least 3-4 months, instead of the usual levitating grind higher on no news and merely ongoing USD carry, tonight for the first time in a long time, futures have drifted downward, pushed partially by declining funding carry pairs EURUSD and USDJPY without a clear catalyst. There was no explicit macro news to prompt the overnight weakness, although a German 10 year auction pricing at a record low yield of 1.28% about an hour ago did not help. Perhaps the catalyst was a statement by the Chinese sovereign wealth fund's Jin who said that the "CIC is worried about US, EU and Japan quantitative easing" - although despite this and despite the reported default of yet another corporate bond by LDK Solar, the second such default after Suntech Power which means the Chinese corporate bond bubble is set to burst, the SHCOMP was down only 1 point. The Nikkei rebounded after strong losses on Monday but that was only in sympathy with the US price action even as the USDJPY declined throughout the session.
Did you know that there are thousands upon thousands of homeless people that are living underground beneath the streets of major U.S. cities? It is happening in Las Vegas, it is happening in New York City and it is even happening in Kansas City. As the economy crumbles, poverty in the United States is absolutely exploding and so is homelessness. In addition to the thousands of "tunnel people" living under the streets of America, there are also thousands that are living in tent cities, there are tens of thousands that are living in their vehicles and there are more than a million public school children that do not have a home to go back to at night. The federal government tells us that the recession "is over" and that "things are getting better", and yet poverty and homelessness in this country continue to rise with no end in sight. So what in the world are things going to look like when the next economic crisis hits?
The news surrounding Bitcoin is now coming in so hard and fast it is virtually (pun intended) impossible to keep track of it all. It was just this past weekend that I highlighted a website that shows some of the various retail locations around the world where you can spend your BTC. Just today, w discovered that New York property management company, Alvic Property Management, is accepting Bitcoin for rent and maintenance payments at all of its properties. Guess someone forgot to tell them it’s a bubble...
A trade is officially deemed "crowded" when everyone is rushing into the market with eyes only on the upside and little concern for the downside--for example, buying homes as rentals. Why could the buy-to-rent housing party be running out of air? The basic reason is the difference between buying real estate as rental housing, which is a speculative market, and the rental property market itself, which is grounded in real-world supply and demand. Simply put, if the supply of rental housing exceeds demand, rents (the cost of renting shelter) decline. That jeopardizes the fat returns the speculative buyer was counting on. Crowded trades are often described as boats with everyone on one side. Boats loaded in this fashion tend to capsize once exposed to the slightest volatility (wave action). The buy-to-rent boat is looking rather overloaded, and the bullish side's gunwales are only a few inches above the water for these six reasons.
Texas Rep. Giovanni Capriglione has a bill in play that would move the state’s gold from New York (where its under the “safekeeping” of the ultra shady Federal Reserve) to a depository within the state of Texas itself. The reason this would be such a big deal if it happens, is because a lot of the gold bought and sold globally is not very likely not actually owned by those that “buy” it. From my perspective, pretty much the only countries that actually buy gold and bring it within their borders are China, Russia and Iran. Most other nations that claim they “bought” gold, most likely hold a certificate that states they have gold in London or New York. So in other words, they have no gold. It looks like Texas is wising up.
Still smarting from his humiliating defeat in court (pending appeal) to ban "large sugary drinks" (because just like in Cyprus nobody can possibly conceive of opening ten €100K accounts instead of one for €1 million, and nobody will buy two 16 oz drinks instead of one 32 oz), Mayor Bloomberg has set his sights on his next nanny state crusade: a proposal banning retail stores from displaying cigarettes as part of his effort to reduce smoking rates in the city. From Reuters: "Bloomberg, who has taken aggressive steps to curb smoking in public places and promote health with various restrictions on restaurants, plans to introduce to the City Council on Wednesday two bills that would require retailers to keep cigarettes in a drawer or other concealed location. "Young people are targets of marketing and the availability of cigarettes, and this legislation will help prevent another generation from the ill health and shorter life expectancy that comes with smoking."
Just hitting the tape ahead of tomorrow's scheduled hit of Bloomberg's ban on "large sugary drinks":
Judge invalidates New York City's ban on large sugary drinks; ban had been scheduled to take effect tomorrow.
Judge says sugar drink limit "illegal"
Judge finds ban to be arbitrary and capricious.
Has the time come to ban independently thinking judicial authorities who don't agree with multi-term Spanish-speaking authoritarians?
Here we go again! RT @christrobbins: Scanner says NYPD called to an "unusual incident" on LIE near exit 23: "drone flying"
— NYCAviation (@NYCAviation) March 10, 2013
Governments Worldwide are Implementing Orwellian Gold Confiscation Today. You Just Haven’t Realized it Yet.Submitted by smartknowledgeu on 03/07/2013 04:52 -0400
Bankers have turned the paradigm of monetary truth upside down. People believe in fiat paper & digital money that is counterfeit and have always ended up in massive collapse to their intrinsic value of zero, and have zero belief in real money, like physical gold and silver, that has served civilizations as money and kept price indexes constant and stable for over 5,000 years.
State and local governments nationwide have struggled to accommodate a homeless population that has changed in recent years - now including large numbers of families with young children. As the WSJ reports, more than 21,000 children - an unprecedented 1% of the city's youth - slept each night in a city shelter in January, an increase of 22% in the past year; as homeless families now spend more than a year in a shelter, on average, for the first time since 1987. New York City has seen one of the steepest increases in homeless families in the past decade, advocates said, growing 73% since 2002, and "is facing a homeless crisis worse than any time since the Great Depression."
When two weeks ago we exposed the heretofore secret location of JPM's London gold vault (located under the firm's massive L-shaped office complex at 60 Victoria Embankment) we thought: what about New York? After all, while London is the legacy financial capital of the "old world", it is in New York that the biggest private wealth of the past century is concentrated, and it is also in New York where the bulk of the hard assets backing the public money of the world's sovereigns are located, some 80 feet below ground level in the fifth sub-basement of the New York Fed, resting on the bedrock of Manhattan. That the topic of the gold "held'' by the New York Fed - historically considered the gold vault with the largest concentration of gold bars in the world - has become rather sensitive, in the aftermath of the Bundesbank's request to repatriate it (surely, but very, very slowly), is an understatement. Yet in the aftermath of some of the revelations presented here, we believe quite a few other countries will follow in Germany's footsteps for one very simple reason: suddenly the question of whether their gold is located at 33 Liberty, or just adjacent to it, in what we have learned is the de facto largest private gold vault in the world, located across the street 90 feet below 1 Chase Manhattan Plaza, doesn't appear to have a clear answer.
This is just the latest revelation in the stealth inflation and food fraud theme we have written about frequently in recent months. The non-profit group Oceana took samples of 1,215 fish sold in the U.S. and genetic tests found that that 59% of those labeled tuna were mislabeled. It seems that “white tuna” should be avoided in particular as “84% of fish samples labeled “white tuna” were actually escolar, a fish that can cause prolonged, uncontrollable, oily anal leakage.” Oh and if you live in New York City or Southern California, you should pay particular attention if you're heading to Sushi!!
"Whether its cash, gold, or digital-data bits, we all know that money makes the world go round; but what that money is worth depends on trust." In this fascinating documentary, National Geographic Channel takes you inside the heart of the money machine to places that you're not allowed to bring a camera (unless you're a blind-folded Bob Pisani)... straight into some of the world's largest vaults. America's Money Vault follows 55 million dollars worth of gold as it makes its way down into the most valuable gold vault in the world. Hidden deep under the streets of New York City, hundreds of billion dollars in gold bars - the wealth of nations - are tucked away in a bunker that is anchored to the bedrock of Manhattan Island itself. Following this introduction, tomorrow, we will reveal much more on the world's biggest vault.
- Wal-Mart's Sales Problem—And America's (WSJ)
- Investors fret that Italy may undermine ECB backstop (Reuters)
- Monti Government Mulls Delaying Monte Paschi Bailout (BBG)
- Norway Faces Liquidity Shock in Record Redemption (BBG)
- ECB's Praet Says Accommodative Policy Could Lose Effectiveness (BBG)
- EU Chiefs Tell Italy There’s No Alternative to Austerity (BBG)
- New Spate of Acrimony in congress As Cuts Loom (WSJ)
- BOE's Tucker hints at radical growth moves (FT)
- Kuroda Seen Getting DPJ Vote for BOJ, Iwata May Be Opposed (BBG)
- Russian Banks Look to Yuan Bond Market (WSJ)
- Dagong warns about rising debt (China Daily)
- Italy Election Impasse Negative for Credit Rating, Moody’s Says (BBG)