Jul 03

“Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears. The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.”


Bank-robbery

Greek Banks Considering 30% Haircut On Deposits Over €8,000: FT (ZeroHedge, July 3, 2015):

Last week in “For Greeks, The Nightmare Is Just Beginning: Here Come The Depositor Haircuts,” we warned that a Cyprus-style bail-in of Greek depositors may be imminent given the acute cash crunch that has brought the Greek banking sector to its knees and forced the Greek government to implement capital controls in a futile attempt to stem the flow. Continue reading »

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Jul 03

obama-angry

Barack Obama Tells Another Whopper – He Did Not Create 12.8 Million Jobs (ZeroHedge, July 3, 2015):

America is better off when President Obama is out on the stump bloviating and boasting rather than in Washington actively doing harm. But the whoppers he just told the students at the University of Wisconsin are beyond the pale. Said our spinmeister-in-chief: “And the unemployment rate is now down to 5.3 percent. (Applause.) Keep in mind, when I came into office it was hovering around 10 percent. All told, we’ve now seen 64 straight months of private sector job growth, which is a new record — (applause) — new record — 12.8 million new jobs all told.” That’s a pack of context-free factoids.

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Jul 03

… at this very moment, politicians from Spain’s Podemos to Italy Five Star movement are drafting memos demanding that the IMF evaluate their own debt sustainability. Or rather unsustainability.


Did The IMF Just Open Pandora’s Box? (ZeroHedge, July 3, 2015):

By now it should be clear to all that the only reason why Germany has been so steadfast in its negotiating stance with Greece is because it knows very well that if it concedes to a public debt reduction (as opposed to haircut on debt held mostly by private entities such as hedge funds which already happened in 2012), then the rest of the PIIGS will come pouring in: first Italy, then Spain, then Portugal, then Ireland. Continue reading »

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Jul 02

Welcome to the recovery!


Americans Not In The Labor Force Soar By 640,000 To Record 93.6 Million; Participation Rate Drops To 1977 Levels (ZeroHedge, July 2, 2015):

The devastation of the US labor force continues.

In what was an “unambiguously” unpleasant June jobs payrolls report, with both April and May jobs revised lower, the fact that the number of Americans not in the labor force soared once again, this time by a whopping 640,000 or the most since April 2014 to a record 93.6 million, with the result being a participation rate of 62.6 or where itt was in September 1977, will merely catalyze even more upside to the so called “market” which continues to reflect nothing but central bank liquidity, and thus – the accelerating deterioration of the broader economy.

Labor Force_1

End result: with the civilian employment to population ratio dropping from last month to 59.3%, one can easily on the chart below why there will be no broad wage growth any time soon, which will merely allow the Fed to engage in its failed policies for a long, long time. Continue reading »

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Jul 02

Euro-QE

Goldman “Conspiracy Theory” Validated As ECB Expands QE Program (ZeroHedge, July 2, 2015):

The ECB has expanded the list of SSA securities eligible for purchase under PSPP. The updated list includes:  Continue reading »

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Jul 02

Since 2007 The US Has Lost 1.4 Million Manufacturers, Gained 1.4 Million Waiters And Bartenders (ZeroHedge, July 2, 2015):

Presented without comment.

Mfg workers vs waiters_0

* December 2007 is when, according to the NBER, the recession started. The same recession which also according to the NBER ended precisely 6 years ago.

 

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Jul 02

Part-Time Jobs Surge By 161,000; Full-Time Jobs Tumble By 349,000 (ZeroHedge, July 2, 2015):

The composition of the US labor force once again deteriorated rapidly with part-time jobs added in June surging by 161,000 while the number of full time jobs tumbled by 349,000.

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Jul 02

Factory Orders Scream Recession: Annual Drop Biggest Since 2008  (ZeroHedge, July 2, 2015):

This has never happened outside of recession… Year-over-year, factory orders dropped 6.3% (adjusted) but 8% non-adjusted, the most since the financial crisis. Against expectations of a 0.5% drop MoM, manufacturers saw new orders tumble 1.0% and previous months were revised dramatically lower. Factory orders has now missed 10 of the last 11 months.

 

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Jul 02

Varoufakis Will Resign If Referendum Passes, Says Would Rather “Cut Off Arm” Than Sign (ZeroHedge, July 2, 2015):

“With banks shuttered and Greece’s economy hobbled by capital controls, Varoufakis said in a Bloomberg Television interview in Athens that he would “rather cut my arm off” than sign a deal that fails to restructure Greece’s debt.”

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Jul 02

The “Smartest Money” Is Liquidating Stocks At A Record Pace: “Selling Everything That’s Not Bolted Down” (ZeroHedge, July 2, 2015):

Buyout firms conducted 97 stock offerings in the second quarter, more than in any other three-month period. “It’s clear that we are currently in an environment of frothy valuations,” said Lise Buyer, founder of IPO advisory firm Class V Group. Her disturbing punchline: The insiders – those with the most knowledge – are finding this a very good time to take some money off the table. In an echo of Leon Black, Frank Maturo, vice chairman of equity capital markets at UBS AG, said, Private equity is selling everything that’s not bolted down.”

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Jul 02

china-crash

China Crash Accelerates, Drags Composite Under 4000; US Futures Flat Ahead Of Nonfarm Payrolls (ZeroHedge, July 2, 2015):#

If it was Greece’s intention to crush the Chinese stock market instead of Europe’s, well – it succeeded.  Because despite the PBOC and politburo throwing everything but QE at the stock market, China stocks closed down sharply on Thursday after another wild trading day as investors shrugged off regulators’ intensified efforts to put a floor under the sliding market, by cutting trading fees and easing margin rules, which has now crashed 25% in about two weeks wiping out $2.5 trillion of the peak $10 trillion in Chinese stock market cap as of June 14. This ultimately resulted with the Shanghai Composite closing under 4000 for the first time since April.

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Jul 02

With Sweden’s QE Officially Broken, The Riksbank Doubles Down: Lowers Rates Even More Negative; Boosts QE (ZeroHedge, July 2, 2015):

Overnight the Riksbank confirmed that it neither learns from its own mistakes, nor reads BIS reports when at 9:30 CET, it shocked central bank watcher all of whom were expecting no rate change from the bank, and announced it is not only engaging in yet another rate cut, taking the key rate even further into record NIRP territory, from -0.25% to -0.35% but adding insult to broken QE injury, it would expand its QE by a further SEK 45 billion starting in September. The reason? Sweden is realizing it is losing the currency war (to a great extent due to its failed QE which is pushing bond yields higher and with it, its currency) and it needs to soak up even more collateral… which can barely be found.

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Jul 02

H/t reader squodgy:

“Looking at these figures merely confirms the economic slump we’re all in.
Nobody wants anything because they’re correctly prioritising.
Low demand = reduced prices, low commodity prices, suppressed wages and on and on and on.

The timing is perfect for an economic collapse, but the war hasn’t been declared yet to hide the reality in the matrix of bullshit.”


These 3 Countries Worry Corporate America the Most (Wolf Street, June 26, 2015):

So how much exactly are the largest US corporations, those in the S&P 500, worried about Greece? The horrific damage that a Grexit might do to the EU economy, global financial markets, the euro, and even, it seems, the survival of the species?

You’d think they’d be quaking in their boots, given the mutual extortion racket carried out via the media through leaks, rumors, and contradictory announcements. You’d think they’d be fretting over every final-final-final-last-chance-deadline for Greece to accept the fine print that comes with more money that will eventually be extracted from strung-out taxpayers in other countries. You’d think US corporations, at a minimum, would start blaming Greece and its side effects for things gone wrong. So… Continue reading »

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Jul 02

H/t reader squodgy:

“Interesting that the actual paper Gold &Silver is being suppressed while it looks like hard metal prices are hardened slightly higher.

This renders the mining industry as marginal at best and a total rock bottom liability at worst, pointing to cheap sell offs for the benefit of the moneyed few who can then mothball them causing the price hike they can benefit from.”

With the price for an ounce of silver being below the cost of production, how can silver not be called a bargain?


Change in gold holding

Gold & Silver Smashdown – Mining Industry Collapse (Level9News, April 29, 2015):

As we’ve seen the price of gold and silver smashed down in order to drive people out of their physical and paper holdings, we are seeing a buying frenzy towards the acquisitions of physical gold and silver, not only by private investors and individuals, but a massive push towards acquisition by leading BRICS nations while simultaneously dumping US Treasuries. This is creating, or at least we are being told, a physical shortage of these metals in the market.

There appears to be an orchestrated attempt to relieve private holders of their gold and silver physical and paper assets at the focal point of the power centralization structure to consolidate these holdings in the hands of the few elite who are manipulating the markets. Continue reading »

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Jul 01

NikosP
Nikos Polonos, 55

Desperate Greeks Resort To Scavenging Through Garbage To Find Food (ZeroHedge, July 1, 2015):

Earlier today we documented the “heartbreaking” plight of Greece’s retirees who have been reduced to lining up in front of Greek banks hoping for a chance to collect a portion of their pensions. Some went away empty handed (there were reports that only those whose last names began with “A” through “K” were paid on Wednesday) and those who did manage to leave with cash were only allowed to access a third of their usual payouts.

This comes as Greeks may (and we emphasize “may”, because nothing is certain and the Greek government has bent over backwards to claim that deposits are “safe”) face a Cyprus-like depositor bail-in in the weeks ahead.  Continue reading »

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Jul 01

LTV 137% – In Unprecedented Development, Lenders Now Take Record Losses On Every Used Car Loan (ZeroHedge, July 1, 2015):

This wasn’t supposed to happen.

 

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Jul 01

“Heartbreaking” Scene Unfolds At Greek Banks As Pensioners Clamor For Cash (ZeroHedge, July 1, 2015):

1,000 Greek bank branches chanced a stampede in order to open their doors to the country’s retirees on Wednesday.

The scene was somewhat chaotic as pensioners formed long lines and the country’s elderly attempted to squeeze through the doors in order to access pension payments.

As Bloomberg reports, payouts were rationed and disbursals were limited according to last name. Here’s moreContinue reading »

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Jul 01

Equities Soar As Tsipras Said Ready To Accept Most Of Expired Bailout Offer, European Response Muted (ZeroHedge, July 1, 2015):

It’s deja vu all over again.

Just hours after Greece became the first developed country to default to the IMF, as a result being expelled from its existing bailout program, a little before 5am CET news hit that Greek PM Tsipras was willing to concede to virtually all creditor demands, with a few exceptions. As the FT first reported, “Greek prime minister Alexis Tsipras will accept most of the bailout creditors’ conditions offered last weekend, but is still insisting on a handful of changes that could thwart a deal according to a letter he sent late on Tuesday night.” Continue reading »

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Jul 01

For Greeks The Nightmare Is Just Beginning: Here Come The Depositor Haircuts (ZeroHedge, June 30, 2015):

With capital controls already imposed on Greece, some have wondered if this is as bad as it gets. Unfortunately, as the Cyprus “template” has already shown us, for Greece the nightmare on Eurozone street is just beginning.

As a reminder, over the past few months there have been recurring rumors that as part of its strong-arming tactics the ECB may eventually move to raise the haircuts the Bank of Greece is required to apply to assets pledged by Greek banks as collateral for ELA. The idea is to ensure the haircuts are representative of both the deteriorating condition of Greece’s banking sector and the decreased likelihood that Athens will reach a deal with its creditors.

Flashback to April when, on the heels of a decree by the Greek government that mandated the sweep of “excess” cash balances from local governments to the Bank of Greece’s coffers, Bloomberg reported that the ECB was considering three options for haircuts on ELA collateral posted by Greek banks. “Haircuts could be returned to the level of late last year, before the ECB eased its Greek collateral requirements; set at 75 percent; or set at 90 percent,” Bloomberg wrote, adding that “the latter two options could be applied if Greece is in an ‘orderly default’ under a formal ECB program or a ‘disorderly default.’”  Continue reading »

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Jul 01

7/01/2015 — Oklahoma Residents can now SUE Fracking companies for damages — Supreme Court Rules (Dutchsinse, July 1, 2015):

Huge victory against oil / gas companies causing damage via fracking/injection earthquakes !

After a series of dark moments for freedom in Oklahoma, and Texas (when state legislators passed laws which PREVENT locals from being able to stop fracking in their own towns) now the Oklahoma Supreme Court has issued a ruling which could be a game changer for the entire fracking industry.

Residents can now sue fracking companies for damages to their property , and personal health caused by fracking earthquakes.

This all stems from a case where a woman had her house chimney collapse in upon her during the large M5.7 2011 fracking earthquake in Oklahoma.

oklahoma-man-made-earthquake-swarm

At the time, professionals tried to DENY there was any relation between the huge swarm of earthquakes, and the fracking operations.

Not trusting anything on face value, I actually pulled satellite images to see what was at the location, what I found was shocking. Continue reading »

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