Nov 26 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
With the
S&P 500 put/call ratio recently plunging to multi-year lows, JPmorgan's
clients have been asking how this should be interpreted. Not surprisingly,
JPMorgan sees little reason for alarm. Perhaps it is time for JPM
to admit that it may be wrong...
A few week ago, just as the market
was set to plumb new YTD lows, we warned that the put/call ratio on the SPY had
just hit its lowest level since January 2017.
See Chart:
Meanwhile, the put/call ratio has only continued to slide to
fresh multi-year lows, sending an even more ominous correction signals.
This, according to the JPM quants happens for several
reasons:
- investors sell much of their cash equities, which reduces put demand (since you don't need to hedge what you're not long to begin with);
- options become expensive as volatility spikes, leading some investors to short futures rather than buy puts to hedge further
- downside;
- call demand increases as investors buy calls or call spreads to hedge right tail risk from being underweight or short equities; and
- investors monetize some of their hedges (reducing put OI).
The bank then notes that apart from the last item, none of
these flows could be seen as investors being ‘complacent.’
See Chart:
So how does JPMorgan twist the
plunging put/call ratio as an indicator of rising caution, and not complacency?
Well, according to Kaplan and Kolanovic, it was not the put
OI that declined materially recently, "but rather the put/call ratio's
fall can be almost entirely explained by the sharp increase in calls
outstanding to 7-year highs."
For example, we note that put OI has actually increased by
~6% since Oct 9th (the day before the market's 3.3% 1-day sell-off), but this
pales in comparison with a 37% increase in call OI. To JPMorgan, along with investor
deleveraging, this suggests "the put/call ratio decline is largely due to
increased demand for calls to replace sold cash positions and/or hedge a
rebound/right tail, and should not be interpreted as a sign of
complacency."
See Chart:
Alternatively, what JPM is saying is that while a correction
warning light may be lit, this is due to investors piling into calls perhaps in
yet another mutated form of BTFD, this time on leverage, in hopes of catching
the market rebound when it happens next time. Therefore,
the flip said of JPM's argument is that the tumbling P/C ratio this time is
actually the clearest example of
complacency, as investors are not even hedging but openly doubling down on bullish hopes that a bounce in stocks is
imminent.
If that's not complacency, we wonder how JPM defines
the word.
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SOURCE: https://www.zerohedge.com/news/2018-11-26/dont-panic-about-plunging-putcall-ratio-kolanovic-says
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" We need a revolution to cast off monopolies
and
restore entrepreneurial freedom..."
Read this:
Competition is the essence of capitalism, yet it is
dying.
Rising market power by dominant
firms has created less competition, lower investment in the real economy, lower
productivity, less economic dynamism with fewer startups, higher prices for
dominant firms, lower wages and more wealth inequality. The evidence from
economic studies is pouring in like a flood.
If you believe in
competitive free markets, you should be very concerned. If you believe in fair
play and hate cronyism, you should be worried. With fake capitalism CEOs cozy
up to regulators to get the kind of rules they want and donate to get the laws
they desire.
Larger
companies get larger, while the small disappear, and the consumer and worker
are left with no choice.
Freedom is
essential to capitalism.
It is not surprising then that
Milton Friedman picked “Free to Choose” as the title of his extremely popular
PBS series on capitalism, and “Capitalism and Freedom” was the title of his
book that sold over 1.5 million copies. He argued that economic freedom was “a
necessary condition for political freedom.”
"Free
to Choose" sounds great.
Yet Americans are not free to choose.
In industry after industry,
they can only purchase from local monopolies or oligopolies that can tacitly
collude. The U.S. now has many industries with only three or four competitors
controlling entire markets. Since the early 1980s, market concentration has
increased severely. We’ve already
described the airline industry. Here are other examples:
- Two corporations control 90 percent of the beer Americans drink.
- Five banks control about half of the nation’s banking assets.
- Many states have health insurance markets where the top two insurers have an 80 percent to 90 percent market share. For example, in Alabama one company, Blue Cross Blue Shield, has an 84 percent market share and in Hawaii it has 65 percent market share.
- When it comes to high-speed Internet access, almost all markets are local monopolies; over 75 percent of households have no choice with only one provider.
- Four players control the entire U.S. beef market and have carved up the country.
- After two mergers this year, three companies will control 70 percent of the world’s pesticide market and 80 percent of the U.S. corn-seed market.
The list of industries with dominant players is
endless. It gets even worse when you look at the world of technology.
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Read more at :
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The reality is there is no
avenue left for advocacy, grievances or redress in a system dominated by
global corporations and self-serving political insiders...
Read this extract:
In the
present era of corporate dominance, where can serfs go to demand redress and
financial freedom from the neofeudal system? Nowhere. The global corporations that own the land and
the productive assets have no castle that can be stormed; they exist in an
abstract financial world of stock shares, buybacks, bonds, lobbyists and
political influence.
The
reality is there is no avenue left for advocacy, grievances or redress in a
system dominated by global corporations and self-serving political insiders.The
castle on the hill doesn't exist; it is diffused all over the planet, and well
protected by state minions who listen only to neofeudal corporate interests.
The
problem for well-meaning politicos is the system cannot be reformed or
repaired: the cartel-state
socio-economic system is now the wrong unit size and the wrong
structure. As I explain my my new book, the cost of buying political
influence is a small fraction of the gains reaped from buying the influence.
Mere
debt-serfs and tax donkeys cannot compete with campaign contributions and
influence purchased with tens of millions of dollars in cartel profits. The system isn't simply rigged to benefit
insiders--it's incapable of listening to debt-serfs and tax donkeys because
their demands would collapse the system.
Corporate
power and self-serving insiders destroy democracy. That is the heart of neofeudalism, which is the only
possible output of the status quo.
Read the full art at:
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US
DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds
& corruption. Urge cambio
"Had Paul Revere been
around in 1913, he might well have wished to get on his horse to warn
the people that the Federals were coming. Only this time, it wasn’t the Federal troops, it was the Federal Reserve."
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US PRESS IS INSTIGATING WW3 .. with
the complicity of the FED: However,
there is a chance for dispute settlement or peaceful solution of this riddle (mediation, arbitration or adjudication according to Laws of
Peace). UK is the less option for mediation or arbitration.. they have domestic
problems inside & they try to use this issue to escape from them (Clinton
did it in the US to get out from impeach -case Monica Lewinsky- and invent a
war outside) . We Can’t jump to the Law of war just because UKies demanded. We should proceed 1st
with Dispute Sttlement with either the UN Court of Justice –ICJ- or with the
Regional Court for European Communities. IF the UKies and US want WW3… they
will have it. I did explore that chance in HOW SOME OUTSIDERS SEE WW3
P.1, but 1st let’s give a chance to PEACE and dispute settlement. P2:coming
…
"They had 17 aircraft, we have 48 missiles –
I think we're going to win that one."
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WHY it is good for
the Trump to prosecute Wikileaks with impunity .. What
an idiocy! It only occur to
Goebels.. the master man of necons in US…Hi-Hi
Furer!
"If
you were wondering how long it would
take the imperial propagandists to ramp up their efforts to explain
to us why it is good for the Trump administration to prosecute WikiLeaks
founder Julian Assange ... the answer is eight days. "
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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
Apple is a US Com not chinese.. Like dinos tiene la cabeza mas peq que sus
ideas
FUTURES,
YUAN, APPLE TUMBLE AFTER TRUMP SAYS "HIGHLY LIKELY" WILL MOVE AHEAD
WITH CHINA TARIFF BOOST
And in the latest surprise, Trump
also said that tariffs could also be placed on iPhones
and laptops imported from China.
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The investigation is for death people, not for tear gas. IF
happens, it’s a nasty crime
Mexico does
not appear to have made similar demands in 2013 when the Obama
administration did the same thing
[[ Does he kill kids too? IF so, he will go to Court too. ]]
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HI Tio
HITLER, Los de la prensa mercenaria te
saludamos!
"...prosecutors in Alexandria Virginia asked the court to deny the disclosure request by a
journalists' group"
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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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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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What Happens If Julian Assange Is Tried in
the US? By Srecko Horvat
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US Mass Mobilizations: Wars and Financial
Plunder By Prof. James
Petras
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COUNTER PUNCH
Analysis on US Politics & Geopolitics
Sheldon Richman Trumps
Foreign Policy War on Americans
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Christopher Brauchli Fear
of Immigrants (and Soros)
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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
ND denounce Global-neoliberal debacle y propone State-Social
+ Capit-compet in Econ
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PRESS TV
Resume of Global News described by Iranian observers..
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