- Santa Yellen Arrives: Stock Buying-Panic Sparks Biggest Short Squeeze In Over 3 Years (ZeroHedge, Dec 17, 2014)
- Russian Stocks Soar 17% – Most Since 2008; Ruble Back Below 62/USD (ZeroHedge, Dec 17, 2014):
After falling for 15 of the last 16 days, the RTS (Russian Stocks) are surging 17% today, extending gains post CBR 7 Measures, the most since October 2008.The Ruble is soaring also – back below 62/USD.
RTS biggest gain since Oct 2008…
Juiced by the CBR Measures…
- Russian Central Bank Releases 7 Measures It Will Take To Stabilize The Financial Sector (ZeroHedge, Dec 17, 2014):
In its latest effort to counter financial instability – and show its commitment to maintaining order and support for the economy – Russia’s Central Bank (CBR) has unveiled 7 new measures… Ranging from bank recaps to measures aimed at helping manage interest-rate and credit risks, the reaction in the Ruble is positive for now… as perhaps, taking a lesson from the US, The CBR removes Mark-to-Market accounting for various credit instruments. Continue reading »
- Total Chaos: Massive Market Moves Spark Selling-Panic Into Close (ZeroHedge, Dec 16, 2014)
- It’s Not Just Russia: Middle East In Freefall, Biggest Plunge In 6 Years (ZeroHedge, Dec 16, 2014):
Dubai’s Financial Market General Index is now down 40% since the peak in oil prices in June this year. For now, only Qatar is clinging to gains year-to-date as the rest of the Middle Eastern equity markets give up 30-60% gains from mid-year and tumble to negative. Dubai and Abu Dhabi alone are down over 8% since Friday. Saudi Arabia is down 7.3% today – the biggest drop in 6 years.
Saudi Arabia’s worst day in 6 years
- Turmoil Spreads: Ruble Replunges, Crude Craters, Yen Surges, Emerging Markets Tumbling (ZeroHedge, Dec 16, 2014):
For those wondering if the CBR’s intervention in the Russian FX market with its shocking emergency rate hike to 17% overnight calmed things, the answer is yes… for about two minutes. The USDRUB indeed tumbled nearly 10% to 59 and then promptly blew right back out, the Ruble crashing in panic selling and seemingly without any CBR market interventions, and at last check was freefalling through 72 74 76, and sending the Russian stock market plummeting by over 15%.
- Ruble plummets losing more than 20% in a day, hitting new dollar and euro lows (RT, Dec 16, 2014):
No end seems to be in sight for the plight of the Russian ruble, which slumped to new record lows against hard currencies Tuesday. The EUR traded at 93.5 against the ruble, and the USD at 75.
Trillion Ruble Coin?
— zerohedge (@zerohedge) December 16, 2014
The Russian stock market also went haywire, dropping more than 15 percent as of 2:30pm Moscow time, after it dropped 11 percent the day before. Sberbank, the country’s largest lender, lost 17.77 percent, and VTB, the second biggest bank, fell by 14.29 percent. State-owned oil and gas companies Gazprom, Rosneft, and Surgut also saw shares plummet.
The emergency interest rate hike to 17 percent has failed to halt the ruble’s landslide tumble against hard currencies. The rate increase only calmed the ruble temporarily. Continue reading »
- 17-Year-Old Trading Genius Who “Made ” $72 Million Actually Just “Made It All Up” (ZeroHedge, Dec 16, 2014):
Yesterday, when we skeptically mocked the NY Mag’s Jessica Pressler coverage of Mohammed Islam, the 17-year-old wunderkind who “allegedly” made $72 million in the market by trading penny stocks, we covered the salient lies and told readers to “feel free to click on the NY Mag’s story about the young “multi-millionaire” – after all that was the whole point.” Sure enough, in the finest tradition of the New Republic’s Stephen Glass, the entire article was nothing more than one epic big clickbait fest.
Oh, did we mention: completely fabricated clickbait.
Because after the entire world learned that young trading whiz-kid Mohammed Islam had “made” $72 million, certainly including the IRS which would promptly come looking for the $36 or so million it was due, the alleged megatrader, who got just the wrong 15 minutes of fame, scrambled to set the record straight, and explained the instead of making money, he actually made nothing, he just made it all up: to wit: “Is there ANY figure? Have you invested and made returns at all? No. So it’s total fiction? Yes. I run an investment club at Stuy High which does only simulated trades.”
Well that clears it up.
Now all he needs is a newsletter and he can claim he is Investment Club 2.0.
For the full story we present the following interview with the NY Observer, where Islam confesses he is nothing but a paper trader.
New York Mag’s Boy Genius Investor Made It All Up Continue reading »
- We Just Witnessed The Worst Week For Global Financial Markets In 3 Years (Economic Collapse, Dec 15, 2014):
Is this the start of the next major financial crisis? The nightmarish collapse of the price of oil is creating panic in financial markets all over the planet. On June 16th, U.S. oil was trading at a price of $107.52. Since then, it has fallen by almost 50 dollars in less than 6 months. This has only happened one other time in our history. In the summer of 2008, the price of oil utterly collapsed and we all remember what happened after that. Well, the same patterns that we witnessed back in 2008 are happening again. As the price of oil crashed in 2008, so did prices for a whole host of other commodities. That is happening again. Once commodities started crashing, the market for junk bonds started to implode. That is also happening again. Finally, toward the end of 2008, we witnessed a horrifying stock market crash. Could we be on the verge of another major one? Last week was the worst week for the Dow in more than three years, and stock markets all over the world are crashing right now. Bad financial news continues to roll in from the four corners of the globe on an almost hourly basis. Have we finally reached the “tipping point” that so many have been warning about? Continue reading »
- The Bloodbathery Continues – “Some Folks Were Selling… Everything” (ZeroHedge, Dec 15, 2014)
- The Crude Crash Comes To Wall Street: Counterparty Risks Rear Their Ugly Heads Again (ZeroHedge, Dec 13, 2014):
In late 2006, default rates on lower-rate subprime private MBS began to rise considerably. Though not a very transparent market to the mainstream media-watching world, bankers knew trouble was brewing as this had not happened before in such a benign house price decline. Banks, knowing what they had on their books, what they had sold to others, and what that meant for risk, began quietly buying protection on other banks as counterparty risk became a daily worry for desks across Wall Street.
The stocks of US financials continued to rise amid “contained” and “no problem” comments from the status quo but credit spreads for the major US banks kept leaking wider even as stocks rallied… then reality dawned on stocks and the rest is history.
Today, US financial credit spreads (wider) have decoupled once again from stocks (higher) and that divergence began as oil prices started to slump. Continue reading »
What could possibly go wrong?
From the article:
“The only question is when the next multi-trillion (or perhaps quadrillion now that all global central banks are all in?) bailout takes place.”
The elitists will blow up the entire financial system and you better have water, food, gold, silver, guns, a remote farm, friends and a getaway plan.
- Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For (ZeroHedge, Dec 12, 2014):
Courtesy of the Cronybus(sic) last minute passage, government was provided a quid-pro-quo $1.1 trillion spending allowance with Wall Street’s blessing in exchange for assuring banks that taxpayers would be on the hook for yet another bailout, as a result of the swaps push-out provision, after incorporating explicit Citigroup language that allows financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp, explicitly putting taxpayers on the hook for losses caused by these contracts. Recall:
Five years after the Wall Street coup of 2008, it appears the U.S. House of Representatives is as bought and paid for as ever. We heard about the Citigroup crafted legislation currently being pushed through Congress back in May when Mother Jones reported on it. Fortunately, they included the following image in their article:
Unsurprisingly, the main backer of the bill is notorious Wall Street lackey Jim Himes (D-Conn.), a former Goldman Sachs employee who has discovered lobbyist payoffs can be just as lucrative as a career in financial services.
We say explicitly, of course, because taxpayers have always been on the hook implicitly for the next Wall Street meltdown.
Why? Continue reading »
Wow, what a perfect timing for CNN to come up with this story!
This is NOT idiocy, just evil, … pure evil.
Here’s how this will probably end for those students who believe this:
- Peak Idiocy: CNN Urges Students Not To Pay Down Student Loans, Buy Stocks Instead (ZeroHedge, Dec 12, 2014):
You know the Central-Bank-driven wealth-creation narrative has gone too far when… CNN Money – the bastion of personal financial advice introduces us to Mohammad Majd, graduate who opines “I changed my entire philosophy on debt. I started making minimum payments on my student loans, picked up a “Stock Investing for Dummies” book, and put whatever extra money I made into the stock market.” It’s great any muppet can win… “It was a really good feeling knowing that I could wipe away my entire student loan debt with just a few mouse clicks.” This is how broken the market (and the mindset) has become…
Always wanted to catch a falling knife?
This is your chance …
More charts and information here:
- Crude Carnage Contagion: Biggest Stock Bloodbath In 3 Years, Credit Crashes (ZeroHedge, Dec 12, 2014):
We leave it to Jack to explain what happened this week…
Quite a week!!
- WTI’s 2nd worst week in over 3 years (down 10 of last 11 weeks)
- Dow’s worst worst week in 3 years
- Financials worst week in 2 months
- Materials worst week since Sept 2011
- VIX’s Biggest week since Sept 2011
- Gold’s best week in 6 months
- Silver’s last 2 weeks are best in 6 months
- HY Credit’s worst 2 weeks since May 2012
- IG Credit’s worst week in 2 months
- 10Y Yield’s best week since June 2012
- US Oil Rig Count worst week in 2 years
- The USDollar’s worst week since July 2013
- USDJPY’s worst week since June 2013
- Portugal Bonds worst week since July 2011
- Greek stocks worst week since 1987
No Hindenburg Omen today but it appears the Dow & S&P are pressing down to test their 50DMAs…
- Cromnibust! Hindenburg Cluster Grows As Crude, Credit, & US Government Credibility Crash (ZeroHedge, Dec 11, 2014)
- Greek Stocks Crash, Default Risk Spikes After PM GREXIT Comments (ZeroHedge, Dec 11, 2014):
Just 2 short months ago we noted S&P’s warning that Greece will default again within 15 months and following comments by Prime Minister Samaras that the market’s drop is due to fear that Syriza will win an early election and seek a Greek exit from the Euro. Pressuring parliamentarians and the public alike, he stated “the choice is simple,” warning that Greek financing needs are only covered through the end of February without further aid from the EU (but we thought they were ‘recovered’). Greek stocks have crashed further, Greek default risk has spiked, and 3Y bond yields are now well north of 10% (138bps inverted to 10Y).
As Bloomberg reports,
Greek PM Antonis Samaras says country’s financing needs covered until end-Feb, in comments to lawmakers of his party in parliament today.
Greece will get next tranche of its bailout loan; if we have elections everything is “up in the air”
Markets react to possible Syriza election win, fall because they fear Syriza: Samaras Continue reading »
- “Some Market Folks Are Turmoiling…” As 6th Hindenburg Omen Spotted (ZeroHedge, Dec 10, 2014):
The 6th Hindenburg Omen in 7 days… a confirmed cluster we have not seen in recent history…
- GREXIT Fears Spark European Peripheral Contagion, Silver Surging (ZeroHedge, Dec 10, 2014):
Yesterday’s greek carnage continues as stocks and bonds in the Hellenic State collapse further. The Athens Stock Exchange Index is now down over 18% from Monday’s highs and yields on the 3Y GGB have exploded to 9.35% (pre-bailout levels) and are 75bps inverted to 10Y. The ongoing fear of fallout from a snap-election victory for anti-EU Syriza has also spread to the rest of the perihpery where Portuguese, Italian, and Spanish bond spreads have all started to crack wider. The beneficiary of this risk aversion so far are Bunds and Treasuries and precious metals where silver is surging higher.
As the sun sets in Athens, we thought a moment of reflection was worthwhile. Greek stocks are now down 13% – the biggest single-day drop since (drum roll please) the crash of 1987… led by total carnage in Greek banks (down 15-25% on the day). Greek bond yields exploded, 3YR +183bps to a new post-bailout high at 8.32% (and inverted to 10Y).
- China Crashes: Shanghai Composite Plunges 5.4% Amid Record Trading, Biggest Tumble Since 2009 (ZeroHedge, Dec 9, 2014):
Those who have been following the ridiculous moves in the Shanghai Composite in recent months, knew it was only a matter of time before yet another major stock market (one which recently surpassed the Nikkei for the second largest spot in the world) crashed violently, further eroding faith in the centrall-planned “price discovery” process. The only question was when.
Following our report last night about China’s change in collateral rules, in which we noted that none other than the PBOC was now eager to pop the equity bubble following the PBOC simultaneously fixing the CNY significantly stronger (implicit tightening) and enforced considerably stricter collateral rules on short-term loans/repos – a move which according to estimates from Shenyin Wanguo Securities, would disqualify some 1.25 trillion yuan in corporate bonds as repo collateral, or 60% of all outstanding corporate bonds listed on China’s two stock exchanges – we were not surprised to see the tumble in the market-traded Yuan (which crashed the most in 6 years), and the surge in interest rate swaps, coupled by the plunge in corporate bonds. The only thing that puzzled us was why, after the correct kneejerk reaction lower in the Shcomp, did stocks proceed to surge even higher.
That said, we summarized it as follows: Continue reading »