Oct 31 18 SIT
EC y POL
ND denounce Global-neoliberal debacle y
propone State-Social + Capit-compet in Econ
ZERO HEDGE ECONOMICS
Neoliberal globalization is over.
Financiers know it, they documented with graphics
Global Equity Market
Capitalization:
Eight. Trillion.
Dollars...
SEE Chart :
AND IT'S GONE...
Listen Video:
OCTOBER'S
CARNAGE AT-A-GLANCE...
- Nasdaq 100 worst month since Oct 2008
- S&P worst month since Feb 2009 (lowest monthly close since April)
- FANG stocks crashed 21% in October - the biggest monthly drop on record
- Semis plunged almost 15%, the biggest monthly drop since Nov 2008
- "Most Shorted" stocks down 13.8% in October - worst month since Jan 2016 (or best for shorts)
- S&P Financials dropped over 7% in October - worst month since Jan 2016
- GSIBs (Global Systemically Important Banks) dropped over 10% in October, worst month since June 2016 (Brexit)
- China worst month since Jan 2016
- European stocks worst month since Jan 2016
- Hedge Funds were hammered as Goldman's VIP Basket plummeted 11.5% in October - its biggest drop ever.
- Stocks and Bonds both fell on the month (first time since Feb 2018)
- This is the worst October for Junk bonds since 2008 (HYG saw record volume in October)
- USD's biggest monthly gain since Nov 2016 (Trump election)
- USD and Gold both rallied for first month since Feb 2017
- Gold's biggest monthly gain against Yuan since June 2016
- Oil's worst month since July 2016
While the world's stocks
(ex-US) are down almost 13% YTD, US equities are unchanged (erasing the entire
year's gains in October)...
See Chart:
We note that today's ramp was not a
short-squeeze per se as "Most Shorted" stocks
actually fell on the day. October
was the biggest drop for "Most Shorted" stocks since Jan 2016...
See Chart:
Bigger picture themes show growth stocks underperforming value stocks by
the most since March 2001...Russell 1000 Growth/Value breaking below its
200DMA for the first time since March 2017...
See Chart:
FANG Stocks suffered their
worst month ever...
See Chart:
Nasdaq stocks have plunged as
one with intra-index correlation soaring in October...
See Chart:
Stocks and bonds both fell on
the month - first time since Feb 2018...
See Chart:
The Dollar surged over 2.3% in
October -0 its biggest month since Nov 2016 (election) to April 2017 highs...
See Chart:
Despite the strong dollar, gold
managed gains in October as crude was crushed...
See Chart:
….
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SOURCE: https://www.zerohedge.com/news/2018-10-31/shocktober-over-global-stocks-lose-8-trillion-most-lehman
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"For most Americans it is as if the last recession never ended,
and things just seem to keep getting worse..."
‘We
were shocked to find out it’s only 38 percent of people who get the middle
class life or better,’ said Ryan Bhandari, a policy advisor for Third Way, in an interview
with DailyMail.com.
It is no wonder why so many people are
shopping at Wal-Mart and the Dollar Tree these days.
For
many Americans, those are the literally the only places they can afford to
shop.
SEE Chart:
When I was
growing up, it seemed like literally everyone else around me was “middle
class”, but now those days are long gone. Here is a breakdown of some more of the numbers from
this latest study…
- 30 percent of jobs are “hardship jobs,” meaning they don’t allow a single adult to make ends meet.
- 32 percent are “living wage” jobs, enough to get by but not to take vacations, save for retirement or live in a moderately priced home.
- 23 percent are middle-class jobs, allowing for dining out, modest vacations and putting some money away for retirement.
- 15 percent are “professional jobs,” paving the way for a more comfortable life that includes more elaborate vacations and entertainment and a more expensive home.
It sure must be nice to be in
that top 15 percent.
See Chart:
America needs a strong middle
class, but currently our middle class is disintegrating at a startling pace.
If we are not
able to reverse this trend,
what is the future going to look like for our
society?
….
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SOURCE: https://www.zerohedge.com/news/2018-10-31/62-all-us-jobs-dont-pay-enough-support-middle-class-life
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“...by continuing a process of inflation,government can confiscate, secretly and
unobserved, an important part of the wealth of their citizens.”
Historical
Price Levels
The chart below is a graph of price
levels in the United States since 1774. In anticipation of a reader questioning
the comparison of the prices and types of goods and services available in 1774
with 2018, the data behind this chart compares the basics of life. People ate
food, needed housing, and required transportation in 1774 just as they do
today. While not perfect, this chart offers a reasonable comparison of the
relative cost of living from one period to the next.
See Chart:
Cantillon
Effect
The graph below uses the same data
as the price level graph above but depicts yearly changes in
prices.
See Chart:
…
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2007 sub prime loans. 2018 corporate junk bonds and leveraged loans. 2007 banks and
SPVs funded by the banks. 2018?
This week, GE issued a profit warning and cut its dividend to share holders from 12 cents to 1 cent.
It is only the third time since the Great Depression that GE has reduced its
dividend in this way. It told its share holders it would be taking a $22
Billion charge because one of its units, its power unit, is in deep trouble.
See Chart:
Today
it is not the banking world which stands at the centre of the storm but the
corporate world. In the last years they have flooded the market with junk rated
bonds. At the same time they are also burdened with high yielding, leveraged
and covenant- lite loans. Taken together they are about
$2.4 Trillion of debt.
See Chart:
2007 sub prime
loans. 2018 corporate junk bonds and leveraged loans. 2007 banks and SPVs
funded by the banks. 2018?
Where is this sub-prime corporate debt sitting
today?
See Chart:
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"So
far the focus has been on how many of those seats Democrats can hold, but they
are all competitive races, and it is certainly possible that the Republicans
increase their majority instead."
Under a Republican-controlled Congress we
might see slightly more fiscal stimulus, but only on the order of a couple of
tenths of a percentage point of GDP. That’s because heightened political
sensitivity around the rising deficit will constrain lawmakers from much
further action. So under Republican control of both chambers, we might see a
small additional tax cut partly offset by more restraint on spending, for
example.
See Charts:
Allison Nathan: Would any of the possible election outcomes materially
impact your base case of fading fiscal stimulus?
Alec
Phillips: Probably not. Regardless of the outcome, the midterms are unlikely to substantially
change the medium-term path of fiscal policy; we would still expect the fiscal
boost of 0.75-1.00pp of GDP in 2H 2018 to fade to about neutral over the next
couple of years. In the base-case scenario of a divided Congress, we don’t
expect any changes to taxes, but see slightly more spending coming out of the
budget deal Congress will have to negotiate next year for fiscal years 2020-21.
Under a Republican-controlled Congress we might see slightly more fiscal
stimulus, but only on the order of a couple of tenths of a percentage point of
GDP. That’s because heightened political sensitivity around the rising deficit
will constrain lawmakers from much further action. So
under Republican control of both chambers, we might see a small additional tax
cut partly offset by more restraint on spending, for example.
See Chart:
Read the whole interview at
….
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"War is
a racket..."
GET THIS:
defense
shifted from contracting at a 2.1% annual rate between June 2009 and March
2017, to growing at a 2.9% rate since April 2017. The turnaround
added 0.21 percentage points on average to the nation’s overall economic growth
rate, according to Commerce Department figures.
Defense
outlays grew 6% in the fiscal year that ended Sept. 30, thanks in part to a
bipartisan budget agreement to boost government spending this year and next by
nearly $300 billion above limits set in a 2011 law, including $165 billion more
for military.
See Chart:
…
…
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China has been free-riding the entire time...
Now
Trump and Mnuchin are saying,“Enough!”
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"...the reckoning could be closer than I thought."
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US DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete;
it’s full of frauds & corruption. Urge cambio
"TURN
AROUND!"
…
RELATED
"...the emphasis will not be on keeping non-productive people out,
it will be on keeping productive people in."
…
ONE MORE:
"Nobody
is coming in. We're not allowing
people to come in"
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"We're going to have to recognize if nations
are not willing to live by those rules...we're going to have the ability to defend, and the ability to do offense..."
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US-WW ISSUES (Geo Econ, Geo Pol
& global Wars)
Global depression is on…China, RU, Iran
search for State socialis+K-, D rest in limbo
Some
lessons for bond bears from the land of the rising sun...
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars
& danger of WW3
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RT SHOWS
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NOTICIAS IN SPANISH
Lat Am search f alternatives to
neo-fascist regimes & terrorist imperial chaos
REBELION
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ALAI NET
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RT EN ESPAÑOL
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INFORMATION CLEARING HOUSE
Deep on the US political crisis:
neofascism & internal conflicts that favor WW3
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The Hypocrisy of the United States By Robert Fantina
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Fascism on the March By Peter Koenig
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Differ Between Clima Change Caused By Humans
and Those of Milankovitch
By Paul Craig Roberts
By Paul Craig Roberts
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that
leads to more business-wars from US-NATO
allies
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DEMOCRACY NOW
Focus on Trump policies & the Econ
& Pol crisis inside US
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PRESS TV
Resume of Global News described by
Iranian observers..
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Programs Pictures
That Shake The World-31- Muhammad al-Durrah, murder of the Palestinian child in
his father’s arms by ISR forces who open fire on Palestinian
demonstrators.
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