AUG 24 SIT EC y POL
BLACK MONDAY .. THE CRASH AT PORTAS.
READ THESE ARTICLES
- Great fall of China sinks world
stocks, dollar tumbles (Reuters)
LONDON | BY MARC
JONES: Alarm bells rang across world markets on Monday as a near 9 percent dive
in China shares and
a sharp drop in the dollar and major commodities panicked investors. http://www.reuters.com/article/2015/08/24/us-markets-global-idUSKCN0QT00B20150824
- Global Stocks Fall Sharply Amid
Concerns About the Chinese Economy (WSJ)
WSJ. By TOMMY
STUBBINGTON: The meltdown in financial markets intensified Monday, as global
stocks and commodities extended last week’s steep declines and the Dow plunged
nearly 600 points. http://www.wsj.com/articles/global-stocks-set-for-heavy-losses-1440399044
- Stock Rout Spreads Through Europe
After China Plunge (BBG)
Bloomberg Business. By Jeremy HerronNick Gentle Stephen
Kirkland : VIDEO: Is the Global Market Selloff a Buying Opportunity?.
http://www.bloomberg.com/news/articles/2015-08-23/asia-braces-for-more-selling-as-deepening-stock-rout-boosts-yen
August 23, 2015,
a day before Black Monday
- The Fed Is Looking at a Very Different
Dollar Than Wall Street (BBG)
That may spell
trouble for investors. By Andrea Wong.
Bloomberg B VIDEO : By many popular measures, the dollar has traded sideways
for the last six months. Then there's the Federal Reserve's measure.
The greenback is
surging, according to an index the Fed created to track the U.S. currency
versus 26 of the country's biggest trading partners. It's risen 1.3 percent
beyond a 12-year high reached in March, when the central bank fired the first
of a series of warnings that a stronger dollar may hurt growth and lower
inflation. http://www.bloomberg.com/news/articles/2015-08-23/the-fed-is-looking-at-a-very-different-dollar-than-wall-street August 23, 2015, a
day before Black Monday
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NOW A SOCIALIST VIEW
ON THE CRISIS by RICHARD WOLFF. Interview by Thom
Harmann
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ZERO HEDGE
"Black
Monday" Brings Global Market Rout, Investors Mourn The Death Of Central
Bank Omnipotence. Submitted by Tyler
Durden on 08/24/2015
Read every statement and check its graphic
It started in China...
Continued in Europe...
And then catastrophied in The US...
The crash in stocks at the open appeared as much driven by a
collapse in USDJPY - JPY carry unwinds - which ripped back and lifted stocks...
Cash indices ripped back off the lows and Nasdaq 'touched'
unchanged on the back of AAPL... before it all fell apart again...
As the end of the day loomed, chatter of QE4 (hope) and PBOC
RRR Cut (hope) managed to ramp stocks... dragging S&P minis back to VWAP...
(on heavy volume)
Some context for the drop today...
Everything is red post-QE3...
Energy stocks crashed, catching down to energy
credit markets...which hit another record wide today...
"Inconceivable" - US financial stocks collapse to
credit...
VIX explodeder...
Catching up to credit...
Treasury yields plunged as stocks collapsed but as the PPT
stepped in and rescued AAPL, so bonds got hit (with the long bond yield soaring
to +4bps from -11bps at one point)... then as the weakness re-accelerated,
yields plunged... 10Y traded with a 1 handle once again... and 30Y went out
with a higher yield
The USD drooped most in 5 months today back to 7 month
lows...
Despite USD weakness, commodities were all lower as we
suspect margin calls necessitated widespread selling in everything...
Crude was utterly monkey-hammered back to a $37 handle...
EVERY STATEMENT or PARAGRAPH HAS ITS OWN GRAPHIC.. PRESS TITLE TO SEE THEM
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Forget
Rate Hikes: Bridgewater Says QE4 Is Next; Warns World Is Approaching End Of
Debt Supercycle. Submitted by Tyler
Durden on 08/24/2015
"That's where we find ourselves now—i.e., interest
rates around the world are at or near 0%, spreads are relatively narrow
(because asset prices have been pushed up) and debt levels are high. As a
result, the ability of central banks to ease is limited, at a time when the
risks are more on the downside than the upside and most people have a dangerous
long bias. Said differently, the risks of the world being at
or near the end of its long-term debt cycle are significant.... We
Believe That the Next Big Fed Move Will Be to Ease (Via QE) Rather Than to
Tighten"
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"They're
Getting Away With Murder": Trump Blasts "Paper-Pushing Hedge Fund
Guys" On Taxes Submitted by Tyler
Durden on 08/24/2015
"The hedge fund guys didn't build this country.
These are guys that shift paper around and they get lucky. They are energetic. They are very smart. But
a lot of them - they are paper-pushers. They make a fortune. They pay no tax.
It's ridiculous, ok?"
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Peter
Schiff Warns "THE FED IS SPOOKING THE MARKETS, NOT CHINA". Submitted by Tyler
Durden on 08/24/2015
The correction may
soon morph into a full-fledged bear market if the Fed makes good on its
supposed intentions to raise interest rates this year. Have no
illusions, while most market observers are quick to blame the sell-off on
China, this market was given life by the Fed, and the Fed is the only force
that will keep it alive. Unfortunately for the Fed, it won't be able
to get away with doing nothing for too much longer. Events may soon
force it to show its hand. Then perhaps some may notice that the Fed
is holding absolutely nothing and has been bluffing the entire time.
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As the cost
of insuring equity market risk (VIX) spiked higher this morning (having
been broken for minutes after the open), catching up to the cost of
insuring credit market risk (CDX HY) which has been screaming dead
canaries for weeks, a funny thing happened to the volatility of volatility.
VVIX (the estimate of the uncertainty of the cost of insuring equity risk)
exploded to a level never seen before - as various ETF/hedging strategies
imploded - a level twice as high as during the Lehman crisis...
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By starving
investors of safe return, activist Fed policy has promoted repeated valuation
bubbles, and inevitable collapses, in risky assets. On the basis of valuation
measures having the strongest correlation with actual subsequent market
returns, we fully expect the S&P 500 to decline by 40-55% over
the completion of the current market cycle. The only uncertainty has been the
triggers.
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My advice to my
generation if they would like to buy various assets is to just literally say to
yourself, "Don't think about the price or what other people are paying.
Just ask: 'What would I pay for 1 share of XYZ, knowing it has an artificial
edifice around it?'" Then take a swing while flying blind and pray you hit
it.
But until that is no
longer the case, count me out. Me and my entire generation.
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Did
The Bank Of England Just Admit Financial Markets Aren't "Real"?. Submitted by Tyler
Durden on 08/24/2015
Building Real
Markets for the Good of the People. Image URL http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/08-overflow/20150824_lib.jpg
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Deutsche
Bank's 10 Reasons Why The Market Is Going Lower. by Tyler
Durden on 08/24/2015
Blink and you missed it. With stocks surging back to green
and CNBC celebrating, one could be forgiven (were on a goldfish) for believing
everything is truly awesome again. However, as Deutsche Bank details, there
are ten good reasons why this is far from over...
…
As Deutsche's David Bianco explains, here are 10 reasons why
the S&P likely dips 5-10% or possibly more before any sustained recovery...
1. Poor S&P 500 sales and EPS growth, even ex. Energy
Amid low commodity prices, the stronger dollar, weak
investment spending, weak exports and slower foreign markets, S&P sales
growth has been poor, even ex. Energy.
2. Demanding valuations vs. history, especially ex. big
Banks and Tech
3. Plunge in commodity prices has taken another
significant down leg
4. Strong dollar with further upside likely even upon
modest Fed hikes
5. Subpar US growth trends with weak productivity and
investment
6. US and DM acceleration unlikely to offset slowdown in
China and EM
7. Record high S&P margins, approaching record years
of EPS growth
8. 3.5+ years since the last correction, no 5%+ dip yet
in 2015
10% corrections happen about once every 2 years. Although it
has been 978 trading days (as of August 20, 2015), i.e. 3.88 years since last
correction, the last -19.4% correction on Oct 2011 was severe, and the Apr-Jun
2012 sell-off (9.94%) was just shy of 10%.
9. Fed hikes loom on tightening job market despite slow
GDP/ low CPI
10. No sign of baton pass to investor equity demand as
buybacks plateau
Our near-term expectation for a 5-10% dip is in part
because we think the Fed hikes despite slow growth.
The Fed not hiking might reduce S&P downside risk
this autumn, but we think it would equally limit upside potential until a hike
occurs.
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The truth is that similarities, though perhaps few in
number, do exist [betwee US & Iran] . Similar though contrasting religious
convictions, a penchant for exceptionalism, and pistachios aside, water
management stands to be a defining issue for both nations – and, truthfully,
the world – as we approach mid-century.
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If the Fed was hoping to get the retail investor back and
buying in the market to allow the hedge funds, institutions and private clients who
are all selling at unprecedented levels it may have to come up with a
different strategy than today's flash crash rerun.
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So now comes the era of gluts, shrinking profits and a
drastic deflation of the giant financial bubble that the world’s central banks
have so foolishly generated. And this time they will be powerless to stop the
carnage. Yet the beleaguered central bankers will launch desperate
verbal and market manipulation ploys to brake the current sell-off and thereby
preserve the bloodied remnants of their handiwork. When in
response the gamblers make their eighth run at buying a dip that is now
rapidly turning into a crater, it will be an excellent time to sell anything in
the casino that isn’t nailed down.
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[After mid-day came the following four-recovery-simulation articles: The top message was this: Keep the market open .. stop closing INFO as zerohedge tried to do it.. Let's see what happens tomorrow.]
Thanks to the SEC's
ignorance of seemingly illegal exchanges of information between Jim Cramer and
Tim Cook - everything is awesome again...
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It
Begins: Barclays Pushes Back Rate Hike Forecast Until 2016, Admits Fed Is
"Market Dependent". Submitted by Tyler
Durden on 08/24/2015
Translation: the Fed is not data dependent, but it is,
as we have said all along, entirely market dependent.
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Here's
The Problem: Despite The Plunge, Company Valuations Are Still At Extremes. Submitted by Tyler
Durden on 08/24/2015
Following the recent broad market selloff which has taken all
US stock indices into the red for 2015 and in some cases, red for the
past 52 weeks, the real question traders should be asking themselves now that
the power and potentcy of central bank intervention is increasingly questioned
is whether stocks are now fundamentally cheap or at least, "fairly"
valued. The answer, as SocGen's Andy Lapthorne points out, is a
resounding no.
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The S&P Energy sector ETF - XLE - collapsed at the open to its
lowest since October 2011... Of course, this should come as no surprise
whatsover to those who watch credit...
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Before noon these were the articles published in zerohedge: nice alert!! .. but panicking. Better hide the truth, was the message then after.
Nasdaq was the first to be halted at 0758ET.
The Dow is now down 850 points from Friday's close and
halted...
The S&P 500 Futures is halted for the first time
in history.
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Blood
On The Streets: Down Dumps 1000 Points At Open, Biggest Drop Since Lehman.
Submitted by Tyler Durden on 08/24/2015
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How
Much Lower Does The S&P Have To Drop For The Entire Market To Be Shut Down.
Submitted by Tyler Durden on 08/24/2015
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Deutsche
Bank Sums It Up "The Fragility Of This Artificially Manipulated Financial
System Was Finally Exposed". Submitted by Tyler
Durden on 08/24/2015
The fragility of this artificially manipulated financial
system was exposed over the last couple of days of last week. It all ended with
the S&P 500 falling -3.19% on Friday - its worst day since November 9th
2011.
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Meanwhile,
Beneath The Surface Market Liquidity Is Worse Than During Flash Crash. Submitted
by Tyler Durden on 08/24/2015
Curious why few if any traders can actually execute any
trades, whether buys or sells? The reason is that despite the relative calmness
of the index prints, what is going on beneath the surface is an unprecedented
wave of constant halt and unhalts, making it virutally impossible for any
matching enginge to, well, match buyers and sellers.
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Are there any conditions now that are actually better
than those of 2008? Or are conditions now less resilient, more
fragile and more dependent on unprecedented central bank interventions?
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iCrash?
AAPL Down 6% In Pre-Open, Breaks Below "No Brainer" $100 Level.
Submitted by Tyler Durden on 08/24/2015
Paging Carl Icahn... AAPL shares just
broke below $100 in the pre-open, the lowest since late October.
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Gartman:
"We Should All Be In Survival Mode Today, This Is Not The Time For
Courage". Submitted by Tyler
Durden on 08/24/2015
"We should all be in “survival mode” today;there
is no reason to take action of any sort other than to raise liquidity
where necessary in order to survive the present chaotic situation.
Survival is all that matters. All else is secondary, even if that means
surviving with far less liquidity than one had only mid-week last week. This
is time for retaining what liquidity we can muster; this is not a time for
courage. Get smaller; get liquid and get safe. This is getting ugly
and we can only hope it does not get worse."
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"Regional buyers need a lot of conviction to step
in front of this speeding train [especially] in context of a
rapidly changing economic environment."
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S&P FUTURES AT DAY’S LOW, FALLING 61PTS OR 3.1%
NEW LOWS FOR NASDAQ FUTURES, DOWN 195PTS OR 4.6%
NEW LOWS FOR DOW FUTURES DOWN 533PTS OR 3.2%
EUROPE’S STOXX 600 FALLS 5.3%, WORST ONE-DAY DROP SINCE 2011
NEW LOWS FOR NASDAQ FUTURES, DOWN 195PTS OR 4.6%
NEW LOWS FOR DOW FUTURES DOWN 533PTS OR 3.2%
EUROPE’S STOXX 600 FALLS 5.3%, WORST ONE-DAY DROP SINCE 2011
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Submitted by Tyler
Durden on 08/24/2015 - 07:37
- Deutsche
Bank Says Rout ‘Very Serious’ as Growth Outlook Dims (BBG)
- Great
fall of China sinks world stocks, dollar tumbles (Reuters)
- Global
Stocks Fall Sharply Amid Concerns About the Chinese Economy (WSJ)
- Stock
Rout Spreads Through Europe After China Plunge (BBG)
- China
stocks give up year's gains as 'national team' stays on bench (Reuters)
- The
Fed Is Looking at a Very Different Dollar Than Wall Street (BBG)
- French
train gunman 'dumbfounded' by terrorist tag (Reuters)
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GLOBAL RESEARCH
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Global
Trade in Freefall: Container Freight Rates from Asia to Europe Crash 60% in
Three WeeksBy Tyler Durden, August 24,
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Russian
Army Engages in Syria, Supplies Weapons, Advisors and Intelligence By Thierry Meyssan, August 24
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The
China Stock Market Collapse: Summarizing The “Black Monday” Carnage So FarBy Tyler Durden, August 24
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Former
Greek Finance Minister Yanis Varoufakis Documents Syriza’s Political Treachery
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NOTICIAS EN SPANISH
Mundo.
Los tratados de libre comercio son anti libre
comercio. Immanuel Wallerstein
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Libros
Libres. Teología profana y pensamiento crítico.
Conversaciones con Franz Hinkelammert.Estela Fernández y Gustavo Silnik
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PRESS
TV
Stocks
witness carnage amid meltdown fears. Mon Aug 24, 2015 Continued selloff in Chinese
shares is wreaking havoc across the global market, with the US industrial
average Dow tumbling more than 1,000 points.
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‘Cuba-Russia
relations still strong’. Mon Aug 24, 2015 Cuba rejects as speculation
claims that Havana-Moscow ties have cooled after the Caribbean state and the US
restored relations.
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'US
drawing military plan for Iran'. Mon Aug 24, 2015 The US military is drawing
plans for a potential “comprehensive attack” against Iran if the nuclear
agreement collapses, says a report.
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