Author Archive for Zero Hedge

These Vancouver Homes Sold For Millions In 2011 And Have Been Vacant And Rotting Since: Here’s Why

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Five years ago, in July of 2011, the house at 4182 West 8th Avenue in Vancouver in sold for $4.6 million. It now rests vacant, abandoned and rotting.

Six years ago this $6.2-million Point Grey home boasted unobstructed vistas of the North Shore mountains, English Bay and Vancouver’s skyline. A park sits across a quiet street. The home represents everything a family could aspire to.

As the National Post reports, it too is vacant and rotting. Windows have been left open and debris sits in the yard. Like a symbol of futility, a June 2015 City of Vancouver “untidy-premises” order remains pinned to the door.

The two formerly multi-million mansions devolving to derelict status is not the only thing they share in common: a second uniting feature is what they were meant to become once they were purchased half a decade ago – a store of wealth to Chinese investors eager to park “hot money” outside of their native country, and bid up any Canadian real estate they could get their hands on.

And then the investors disappeared.

The Point Grey property stopped functioning as a home and became a storage of wealth six years ago, according to property documents and a neighbour’s account.

It was well-cared for in 2010 when it was sold to an investor. Since then it has been flipped through a property transfer in a Beijing law office and left unoccupied.

Current owners of the other vacant property residing on the 4100-block 8th Avenue West home are Huai Can Ren and Xue Pei Sun. They bought the home from Wei Min Zhang in July 2011 for $4.6 million. 

The couple’s occupations were both listed as “business person.” Wei Min Zhang had bought the home in July 2010 for $3.35 million.

Since the purchase, the current “owners” have not been seen.

City hall is currently trying to estimate how many Vancouver homes are vacant. And these online communities are anecdotally gathering photo evidence and coming to conclusions that offshore investment is to blame.

In other words, the “Chinese.”

“That is what is driving everything,” said Caroline Adderson, whose website, Vancouver Vanishes, has over 8,000 followers. “It is sickening on all levels.”

City of Vancouver spokesman Tobin Postma said a 2015 order to

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22 Signs That The Global Economic Turmoil We Have Seen So Far In 2016 Is Just The Beginning

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Michael Snyder via The Economic Collapse blog,

As bad as the month of January was for the global economy, the truth is that the rest of 2016 promises to be much worse.  Layoffs are increasing at a pace that we haven’t seen since the last recession, major retailers are shutting down hundreds of locations, corporate profit margins are plunging, global trade is slowing down dramatically, and several major European banks are in the process of completely imploding.  I am about to share some numbers with you that are truly eye-popping.  Each one by itself would be reason for concern, but when you put all of the pieces together it creates a picture that is hard to deny. 

The global economy is in crisis, and this is going to have very serious implications for the financial markets moving forward.  U.S. stocks just had their worst January in seven years, and if I am right much worse is still yet to come this year.  The following are 22 signs that the global economic turmoil that we have seen so far in 2016 is just the beginning…

1. The number of job cuts in the United States skyrocketed 218 percent during the month of January according to Challenger, Gray & Christmas.

2. The Baltic Dry Index just hit yet another brand new all-time record low.  As I write this article, it is sitting at 303.

3. U.S. factory orders have now dropped for 14 months in a row.

4. In the U.S., the Restaurant Performance Index just fell to the lowest level that we have seen since 2008.

5. In January, orders for class 8 trucks (the big trucks that you see shipping stuff around the country on our highways) declined a whopping 48 percent from a year ago.

6. Rail traffic is also slowing down substantially.  In Colorado, there are hundreds of train engines that are just sitting on the tracks with nothing to do.

7. Corporate profit margins peaked during the third quarter of 2014 and have been declining steadily since then.  This usually happens when…
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Volcano Erupts “Spectacularly” 50km From Japanese Nuclear Plant

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Last August, in a hilarious example of bad timing, Japan restarted its first nuclear reactor since the Chernobyl redux at Fukushima just as a nearby volcano was set to erupt.

Sakurajima, one of the country’s most active volcanos, erupts almost constantly, but experts warned the next eruption could be “the big one”, so to speak.

At the time, The Japan Meteorological Agency raised the warning level from 3 to 4.

4 means “prepare to evacuate.”

“The possibility for a large-scale eruption has become extremely high for Sakurajima,” the Agency said. As for what fate would befall someone who failed to heed an evacuation warning, well let’s just say that molten stones “could rain down on areas near the mountain’s base.”

As we noted, the real problem is Sakurajima’s location – it’s just 50 kilometers from the Sendai nuclear power plant.

On Friday Sakurajima erupted at 7 p.m. local time. 

“The Meteorological Agency banned entry to the area, expanding an existing no-go zone around the crater to a 2-kilometer (1.2-mile) radius,” AP reports, adding that “Friday’s eruption, while dramatic, was average compared to Sakurajima’s past eruptions” including the last incident in September.

Here are the visuals.

For now no injuries have been reported and there’s apparently no threat to Sendai which RT reminds us is only “built to withstand a tsunami of 15 meters, well below 2011’s peak tsunami height of 40 meters.”

Kyoto University volcanologist Kazuhiro Ishihara says everything should be fine, but “of course we must keep monitoring the volcanic activity.”

Yes, “of course” we should. Because as we documented last year, Sendai’s operators and local authorities have no comprehensive plan to evacuate residents in the event of a meltdown. We close with a quote from Yoshitaka Mukohara, a representative of a group who opposed the Sendai restart:

“There are schools and hospitals near the plant, but no one has told us how children and the elderly would be evacuated.

“Naturally there will be gridlock caused by the sheer number of vehicles, landslides, and damaged roads and bridges.”

World Succumbs To Zika Panic: Puerto Rico Declares Emergency; Plane Cabins Sprayed; CDC Says “Use A Condom”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Just like the global panic that gripped the world in October 2014 when the Ebola virus had spread from western Africa to many nations around the globe, including several isolated cases in the US, so a year and a half later, the world is urgently scrambling to unleash a sense of panic surrounding the Zika virus which, just like Ebola, came out of nowhere and is fast becoming the latest scapegoat for collapsing global commerce this year’s invisible bogeyman.

Here are some of the latest developments.

At Least 54 People Infected in the U.S.

There are at least 54 people infected with the Zika virus in the U.S. In all except one case, the infection was acquired while out of the country, according to health officials. In one case in Dallas, Texas, the virus is believed to have been transmitted through sexual contact from an infected traveler to a partner.

Florida has the highest number of cases in the U.S., with 12 people infected. Florida Gov. Rick Scott has declared a state of emergency in five counties and ordered thousands of tests that will help identify the disease.

Use a Condom to Avoid Zika, CDC Tells Travelers

According to the Centers for Disease Control, men who have traveled to Zika-affected zones should use a condom if they want to be absolutely sure they don’t infect sex partners, federal health officials advised Friday.

And men with a pregnant sex partner who have been to Zika-affected zones should just use a condom or abstain from sex until the baby is born, the Centers for Disease Control and Prevention said.

“Our priority here is to prevent a pregnant woman from becoming infected with Zika,” CDC chief Dr. Tom Frieden told reporters. “The bottom line for most people in the U.S. is that pregnant women should postpone travel to Zika-affected areas. Our new guidance is that pregnant women should use condoms during sex or abstain if their partner has traveled to an area where Zika has been spreading.”

U.K. to Spray Planes on Routes From Zika-Affected Countries

The U.K. is to order airlines flying from countries affected by the Zika virus, which has been linked with birth defects, to spray insecticide inside plane cabins. As currently happens on flights leaving countries affected

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China’s 3 Trillion Dollar Mistake

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Eugen Bohm-Bawerk via,

When looking at the current state of the Chinese economy it is important to note what happened leading up the ongoing predicament. By managing the USD/CNY exchange rate the Chinese factory worker was essentially funding excess consumption in the United States. One of the many perks enjoyed by global reserve issuer. The factory worker obviously did not do this out of his own volition; on the contrary, he was duped into it by swallowing the propaganda spewed out by party apparatchiks in Beijing. It is all for the common good.

Capital inflows emanating from its persistent trade surpluses could and should be allocated more efficiently and obviously equitably, but the party believed that disproved age-old mercantilism was the way to prosperity, and for a very long time it actually appeared to be the case. New emerging markets with semi-dictators gloated as the “Washington Consensus” of the invisible hand seemed to break down in favour of a very visible and state-directed hand.

But it was all a charade. The Americans emitted debt throughout the globe and the PBoC essentially issued dollars to maintain the peg. In other words, the deeper Americans went into debt, both private and public, the more China inflated their own currency. More specifically, as dollars made its way into China to pay for their manufactured goods, the PBoC issued Yuan to buy dollars and hence kept the peg stable. To avoid runaway inflation the PBoC raised reserve requirements on domestic banks, but needless to say China was in the midst of a massive credit expansion long before 2009. Foreign exchange reserves piled up and were promptly re-circulated back into US capital markets. This parasitical symbiosis was obviously unsustainable and it came crashing down in 2008.     1

Source: Bloomberg,

At this point in our history, Chinese authorities enter panic mode because the drop-off in external demand was so swift and dramatic that it threatened internal stability. The solution was a massive spending spree, funded by fiat through a willing state owned banking system. All the imbalances that had been growing as a cancer in the Chinese economy was not fought tooth-and-nail as it should upon the realisation it was eating away at the core of Chinese prosperity, but rather spoon fed exactly what it thrived on…
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And Now “Some Important News About JPMorgan’s New Cash Policies”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Want to deposit cash at JPMorgan Chase? Then prepare to be treated if not like a criminal, then certainly a suspect of a very serious crime. The charge: being in possession of that “barbarous relic” known as cash.

Soon, as cash becomes increasingly frowned upon, cash deposits will be slowly but surely phased out in their entirety forcing those few savers left in Obama’s grand economic “recovery” experiment, to engage in commerce only in a way that allows the government to keep track of every single transaction.

NWO (revisited)…

Courtesy of ZeroHedge. View original post here.

Submitted by williambanzai7.


BofA: “The Sense Of Calm Which Had Descended On Markets Has Come To An Abrupt End”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The centrally-planned party is over. Here is BofA’s Kama Sharma explaining why

The sense of calm which had descended on markets in recent weeks has come to an abrupt end.

This time it has been the USD which has been the focal point. Investors continue to rotate through a vicious circle of concerns on China, commodities and US growth and with a still large long position, further near-term USD losses are likely as broader US data momentum remains weak.

Until positioning becomes cleaner, bad news on the US economy will be bad news for the USD. China will once again be back in focus next week with the release of its FX reserves data and though our estimates are for a more modest decline, any relief rally would be an opportunity to sell into.

FX: Financial conditions to hold back the Fed again?

The DXY is on pace for its worst weekly performance since 2009. A weaker-than-expected non-manufacturing ISM report (representing 80% of the US economy) challenged the presumption that the US could weather a contraction in the much smaller manufacturing sector. The dollar has been resilient to slower growth readings and the re-pricing of the Fed Funds curve since end-2015 (Chart 1) which pushed rate differentials against it.

This dislocation suggests there is further room to run, particularly as FOMC members are showing sensitivity to tighter financial conditions, and, a stronger USD. Persistent trade-weighted USD strength in recent months has been a key factor driving tighter financial conditions (Chart 2).

The divergence with rate differentials suggests non-fundamental factors (such as flight-to-quality) could be driving USD strength, making it more likely Fed officials will speak more frequently about it. This poses further downside dollar risk.

The continued wedge between the dollar and rate differentials continues to leave asymmetric risks in the near-term as the market will need to see sustained signs of a US growth turnaround before rethinking Fed policy. Chair Yellen’s Humphrey Hawkins testimony will be a key focus in this regard. Short positioning in CAD, EUR, GBP, and MXN (according to the latest CFTC data dated January 26th). Should Chair Yellen emphasize the theme of the risks from financial conditions and the USD, we would expect further long USD position unwinds in these pairs.

* * *

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Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Don't just blindly follow someone else's path… (FF to 40 seconds for today's analogy)…

The Nasdaq's collapse now turns it red since the end of QE3 – joing the rest of the US equity party poopers…

Since The Fed hiked rates, things have not gone according to plan…

As The "Growth" dream is over…

On the week, Nasdaq was boodbath'd but Trannies jumped…

NOTE: Amid all this carnage – VIX remains under 24 and the term structure not inverted – i.e. No Panic

Quite a week for The Dow…

And Nasdaq was the biggest loser on the day… the biggest single-day drop since August's Black Monday plunge… (Nasdaq lowest close since Oct 2014)

The reaction across asset classes to today's jobs report…

Financials disappointed as systemic risk surges and Materials' big mid-week squeeze held its gains…


And Biotechs were battered to 2 Year lows… down 37% from its July 2015 highs…

And finally this happened…

Treasury yields jerked higher on the jobs data only to tumble as traders rotated out of growth stocks…

The USDollar Index crashed by the most since June 2009 this week (despite a bounce today) led by JPY strength (biggest week since Oct 2008!)…

A total fail for The BoJ…

Commodities were mixed on the week with USD weakness sending PMs higher but growth scares driving copper and crude lower..

Gold is "off the lows"

Gold's best 3-week gain in over a year to near 4-month highs and Silver's best 3-week run since May 2015…

Stocks and Crude remain highly correlated…

With China closed for a week, we wonder if the buying in gold is perhaps – just perhaps – anticipating a major devaluation by PBOC with public bank holidays already planned… but of course, this weekend will have all eyes glued to China FX outflows.

Charts: Bloomberg

Bonus Chart: Topping Pattern?

Global Financial System Risk Is Soaring Worldwide

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

We warned earlier in the week that the credit risk of the world's financial institutions were on the rise and that trend has worsened as the week ends.

Global Bank Risk is spiking…

European Bank Risk is blowing out in Core and Peripheral nations…

And China Bank credit risk has broken to new cycle highs..

Some idiocysncratic names to keep an eye on…

Deutsche Bank – Europe's largest derivatives exposure (and thus epicenter of collapse should things turn out as bad as the bank's CoCos suggest) – is suffering seriously… It is becomeing very clear that banks are buying protection on DB to hedge their counterparty exposure…

ICBC Bank is among China's largest banks (depending on the volatility of the day) and as China bank risk soars so China's sovereign risk is soaring too with devaluation and systemic crisis co-priced into these contracts…

National Commercial Bank – the largest Saudi bank and proxy for The Kingdom's wealth – is seeing its credit risk explode. As one analyst noted, if NCB has a crisis then Saudi military adevnturism is in grave jeaopardy…

And finally – yes it is spilling over to American banks and their "fortress" balance sheets…

But apart from that "storm in a teacup" – Buy The F**king Dip, right?


Zero Hedge

These Vancouver Homes Sold For Millions In 2011 And Have Been Vacant And Rotting Since: Here's Why

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Five years ago, in July of 2011, the house at 4182 West 8th Avenue in Vancouver in sold for $4.6 million. It now rests vacant, abandoned and rotting.

Six years ago this $6.2-million Point Grey home boasted unobstructed vistas of the North Shore mountains, English Bay and Vancouver’s skyline. A park sits across a quiet street. The home represents everything a family could aspire to.

As the ...

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Phil's Favorites

As Madoff Airs On TV, Two Anonymous Whistleblowers Are Pounding On The SEC's Door Again

Courtesy of Pam Martens and Russ Martens at

(As posted at ZeroHedge. View original post here.)

Last night ABC began its two-part series on the Bernie Madoff fraud. Viewers will be reminded about how investment expert, Harry Markopolos, wrote detailed letters to the SEC for years, raising red flags that Bernie Madoff was running a Ponzi scheme – only to be ignored by the SEC as Madoff fleeced more and more victims out of their life savings.

Today, there are two equally erudite scribes who have jointly been flooding the SEC with ex...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Kimble Charting Solutions

S&P could reach 1,600 if this gives way, says Joe Friday

Courtesy of Chris Kimble.


S&P 500 tops in 2000 and 2007 took place 91 one months apart. Did another top take place 91 months after the 2007 top. So far it looks very possible.

If you double that time frame, you get 182 months. What is the odds that the NDX 100 topped 182 months after the 2000 high, at the SAME price it hit in 2000?

We applied monthly momentum to the charts above, reflecting that momentum for the S&P is back at 2000 and 2007 highs and turning lower and the momentum for the NDX is back at 2000 levels.


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Market News

News You Can Use From Phil's Stock World


Financial Markets and Economy

Tech-stock wreck destroys $514B this year (USA Today)

The bad year for stocks is getting worse by the minute - and tech investors are feeling the brunt of the pain.

The 462 information technology stocks in the broadRussell 3000 index have shredded a total of $514 billion this year thanks to their average decline of 13.4%, according to a USA TODAY analysis of data from S&P Capital IQ.

Citi: 'We Should All Fear Oilmageddon' (Bloomberg)

A feedback loop of the U.S. dollar, crude, capital flows, and emerging markets....

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Why Most Investors Fail in the Stock Market


Why Most Investors Fail in the Stock Market

Courtesy of ValueWalk, by  

Throughout the past 30 days of wild volatility, here’s what I didn’t do.

Panic. Worry. Sell.

In fact, the best I did was add to a couple of positions yesterday. The world was already in an uncertain state for the past 3+ years. It’s just that with the market rising, we pushed the issue to the back of our  mind and ignored it.

If you read Howard Marks latest memo, ...

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Insider Scoop

Tyson Foods' Stock Ticks Higher Following Q1 Print

Courtesy of Benzinga.

Related TSN 7 Stocks You Should Be Watching Today Earnings Scheduled For February 5, 2016 Tyson Foods beats by $0.26, misses on revenue (Seeking Alpha)

Shares of Tyson Foods, Inc. (NYSE: TSN) were trading higher by more nearly 4 percent early Friday morning after the company reported its ... more from Insider

Chart School

Pause in Action

Courtesy of Declan.

Small Gains as indecision held sway. The S&P finished inside the range of last Friday's breakout and held rising support, but the index did the minimum to pacify bulls.

The Nasdaq breakout has eased alongside former resistance turned support. Volume was lighter, and the spinning top finish marks indecision. While Thursday's action offered no side an advantage, a push towards 4,900 would appear to be the favoured path.

The Russell 2000 is caught inside t...

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Swing trading portfolio - week of February 1st, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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Digital Currencies

2016 Theme #3: The Rise Of Independent (Non-State) Crypto-Currencies

Courtesy of Charles Hugh-Smith at Of Two Minds

A number of systemic, structural forces are intersecting in 2016. One is the rise of non-state, non-central-bank-issued crypto-currencies.

We all know money is created and distributed by governments and central banks. The reason is simple: control the money and you control everything.

The invention of the blockchain and crypto-currencies such as Bitcoin have opened the door to non-state, non-central-bank currencies--money that is global and independent of any state or central bank, or indeed, any bank, as crypto-currencies are structurally peer-to-peer, meaning they don't require a bank to function: people can exchange crypto-currencies to pay for goods and services without a bank acting as a clearinghouse for all these transactions.

This doesn't just open t...

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Sector Detector: New Year brings new hope after bulls lose traction to close 2015

Reminder: Sabrient is available to chat with Members, comments are found below each post.

Chart via Finviz

Courtesy of Sabrient Systems and Gradient Analytics

Last year, the S&P 500 large caps closed 2015 essentially flat on a total return basis, while the NASDAQ 100 showed a little better performance at +8.3% and the Russell 2000 small caps fell -5.9%. Overall, stocks disappointed even in the face of modest expectations, especially the small caps as market leadership was mostly limited to a handful of large and mega-cap darlings.

Notably, the full year chart for the S&P 500 looks very much like 2011. It got off to a good start, drifted sideways for...

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PSW is more than just stock talk!


We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more! features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...

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Baxter's Spinoff

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...

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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 


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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

Thank you for you time!

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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