California Tax Revenues Miss Projections By $1 Billion As Residents Flee The State

California's tax revenues came in $869 million less than forecast for the first four months of the year. Governor brown is now expected to cut some of the proposed spending increases in education, healthcare and infrastructure as a result of the miss. Many things were blamed for the shortfall, from slower than expected wage growth (there's a fix for that!), to lower capital gains taxes from a struggling market. While those were surely a factor, perhaps the biggest reason is the one that was also unmentioned: residents are fleeing the state in droves.

  • May 13, 2016 3:32 PM

"Sick Joke" JC Penney Still On Bankruptcy Path

J.C. Penney sales have fallen by 36% since 2007. They have lost billions over this time frame. They have four times as much debt as they do equity. They have $2.5 billion of current liabilities and only $400 million of cash to pay off those liabilities. But, the bozo management thinks going into the low margin appliance business is going to save this sinking ship. Sorry bozo. You are going bankrupt. It’s just a matter of time.

  • May 13, 2016 3:20 PM

Hedge Fund Billionaire Spends $13 Million Supporing Ted Cruz, Then Immediately Flips To Hillary Clinton

Simons, a string theory expert and former cold war codebreaker, has made an estimated $15.5bn from Renaissance Technologies the mathematics-driven “quant” hedge fund he set up 34 years ago. The fund, which is run from the tiny Long Island village of Setauket where Simons owns a huge beachfront compound, has donated $13m to Cruz’s failed campaign. With Cruz out of the race, Renaissance has switched donations to Hillary Clinton, with more than $2m donated so far.

  • May 13, 2016 3:03 PM

Heretical Thoughts And Doing The Unthinkable

According to the “social contract theory,” we all have our roles and responsibilities. As citizens, we have a duty to inform ourselves, pay our taxes, rat out our neighbors, vote, volunteer for military service, get frisked by the TSA... and let ourselves get robbed and bullied by every jackass in a position of power. Our leaders have responsibilities, too. They are supposed to respect the constitution, except when it is inconvenient for them. Our “leaders” – aka the Deep State – can change the terms any time they want. What kind of contract is it where one party can change the deal and the other can’t? And where the other party was never given the opportunity to negotiate it, or even approve it? It’s not a contract at all. It’s just part of the mythology of modern democracy.

  • May 13, 2016 2:50 PM

David Stockman Warns "Get Out Of The Casino!"

Forget the "wall of worry," former Reagan OMB Director David Stockman warns a shocked CNBC anchorette that "the frogs are in the boiling water again on Wall Street...and they don't have enough sense to get out." The last 600 days of range-bound trading marks the top he explains adding that "we have reached the cyclical top in both GDP and earnings," which leaves a market trading at extremely expensive levels - "why would you stay in?" Stockman believes that the world economy is heading into a "deep and lasting deflationary recession." There is no evidence that America is immune, he adds, warning of the potential for 40% downside and just 2% upside in stocks...

  • May 13, 2016 2:35 PM

Another US-Sponsored Coup? Brazil's New President Was An Embassy Informant For US Intelligence

As much as we would like to believe that Michael Temer is simply the real world version of Frank Underwood, there is a much simpler explanation for the 75-year-old's dramatic ascent to the peak of Brazil's power elite. As it turns out, the Temer presidency may be nothing more than the latest manifestation of the US state department's implementation of yet another puppet government. We know this because earlier today, Wikileaks released evidence via a declassified cable that Brazil's new interim president was an embassy informant for US intelligence and military.

  • May 13, 2016 2:26 PM

Genscape: "Inventories At Cushing Are Close To Maximum Operating Capacity"

Inventories at Cushing are close to maximum operating capacity, and on May 3, 2016 reached utilization just shy of 80 percent, a record high since Genscape began monitoring the hub in 2009. Genscape has never observed capacity utilization higher than 80 percent based on historical data, though utilization may breach 80 percent depending on the utilization of merchant capacity, or capacity that is leased by an owner to other users.


  • May 13, 2016 2:02 PM

Satyajit Das Is "Astonished Investors Haven't Raised Pitchforks At Policy-Makers"

"They’re going to have to stop people from taking out cash... I would argue that it’s not going to be able to be dealt with, and it creates enormous social and political pressures… What we’re going to see is a period of financial repression, which is very, very dangerous... I honestly don’t know how it’s going to end. In the 1920s and 1930 when similar pressures built up, it didn’t actually have a very good ending."

  • May 13, 2016 1:35 PM

Is A "Lehman-Style Shock" Coming: Abe Announces Sales Tax Delay

Over the past few months Abe insisted that he would not delay the consumption tax increase for a second time, explaining repeatedly that the increase would go ahead "unless a global economic contraction or a Lehman-style market shock jolted Japan's economy." Inquiring minds want to know if a Lehman-style economic contraction is about to hit Japan because moments ago Nikkei just reported what many had expected for months, to wit: "Japanese Prime Minister Shinzo Abe has decided to postpone a consumption tax increase set for next April, judging it to threaten efforts to pull the world's third-largest economy out of deflation."

  • May 13, 2016 1:21 PM

US Rig Count Continues To Crash

The total US rig count declined yet again this week, down 9 to 406 - a new record low. The last four times rig counts collapsed anything like this, the US economy was in recession. Oil rigs dropped 10 to a new cycle low at 308, but appear near a turning point if lagged oil prices remain any indication...

  • May 13, 2016 1:09 PM

Drug Prices Soar Most In The 21st Century

While the 1998 Viagra "spike" came and went, in recent years, pharmaceutical preparation, i.e., drug prices have been soaring higher with every passing year, and according to today's PPI report, at the wholesale level, drug prices in April surged by 9.6% over the past year, the biggest increase since 1982 when excluding the Viagra outlier, and certainly the most in the 21st century.

  • May 13, 2016 12:55 PM

The Last Time This Happened, Home Prices Collapsed

The number of people who believe now is a "good time to buy a home" has been stagnant for the last 6 months, but, according to University of Michigan's latest survey, there has not been more people who believe now is a "good time to sell" since March 2006... which marked the absolute peak in US home prices...

  • May 13, 2016 12:35 PM

Even Bill Gross Misunderstands "Free-Market Capitalism"

We have deviated so far from free markets at this point that even the top financial minds no longer have any understanding of what is meant by capitalism. It must be true, for anyone who understands capitalism could never have published such a letter. The logic in Mr. Gross’s argument is beyond invalid, in fact, it is so ludicrous it borders on insane. We mean this quite literally...

  • May 13, 2016 12:17 PM