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America The Divided: Everyone Knows We Have Problems But There Is Very Little Agreement On Solutions

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Michael Snyder of The Economic Collapse blog,

A house divided against itself will surely fall.  America is more divided today than it has been in decades, and the deep divisions that are tearing us apart continue to get even worse.  In fact, a newly released Rasmussen Reports national survey discovered that 67 percent of voters believe that America is even more divided now than it was four years ago.  We are angry, we are frustrated and we love to fight with one another, but none of this strife and discord is getting us anywhere.  What most Americans can agree on is that we are facing tremendous problems as a nation.  One average of recent polls found that only 26 percent of Americans believe that this country is heading in the right direction and 63.8 percent of Americans believe that this country is heading in the wrong direction.

Unfortunately, there is very little agreement on what the solutions to our problems are.  That is where the division is.  As a nation, we no longer have a shared set of values or principles that provides a foundation for our decisions.  Everyone just kind of does whatever is right in their own eyes, and the result is chaos.  At a minimum, the U.S. Constitution was supposed to bond all of us together, but it has become clear that very few of our lawless politicians have any respect for that document at this point.  And the American people must not have too much respect left for the Constitution either, because they keep sending the very same politicians back to Washington over and over again.  Unless a miracle happens, everyone is going to keep pulling in different directions, and that is going to continue ripping our country to shreds.

The issues that divide us are countless.  The following are just a few examples…

-Illegal Immigration

-Taxes

-Obamacare

-Government Debt

-U.S. Military Intervention In Foreign Countries

-Gay Marriage

-Abortion

-Racial Relations

-Unemployment

-Shipping Our Jobs Overseas

-Cost Of Living/Inflation

-The Gap Between The Wealthy And The Poor

-Social Security/Medicare/Entitlements

-The Size And Role Of Government

-Welfare

-Political Correctness

-Sexual Morality

-Global Warming/Climate Change

-Guns/Gun Control

-Common Core

-Corporate Corruption

-Government Surveillance

-The Emerging …
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Japanese Inflation Holds Near 23 Year Highs As Food, Energy, & TV Costs Soar

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Japanese CPI printed 3.6% in June, modestly down from May’s 3.7% YoY, but hotter than the expected 3.5% YoY analysts predicted. If you don’t eat food or use energy then inflation merely bit 2.3% of your income this year but if you did then you may have noticed that energy costs are 9.1% higher YoY, TVs +8.0%, and Food +4.1% (both showing no signs of making Japan’s Misery Index any less, well, miserable). PPI also printed at 3.6% (23 year highs). So when the Japanese politicians say “Abenomics is well on its way to achieving its goals…” they must mean ‘of lowering living standards for all Japanese people’.

 

 

Charts: Bloomberg





Where China Goes To Outsource Its Own Soaring Labor Costs

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

30 years ago, the great outsourcing wave took millions of US low-skilled jobs and planted them right in the heart of China, which was about to undergo the fastest industrialization-commercialization-financialization experiment in history. $26 trillion in bank assets later, the world’s biggest housing bubble, and a teetering financial system that every day depends on Beijing making the correct central-planning decision (of kicking the can one more day, of course) or else the biggest financial collapse in history will take place, all lubricated by years of inflation in everything and most certainly wages, and suddenly outsourcing jobs in China is not all that attractive.  In fact, it has gotten so bad that China itself is now forced to outsource its own labor to cheaper offshore markets. Such as this one.

Ethiopian workers strolling through the parking lot of Huajian Shoes’ factory outside Addis Ababa last month chose the wrong day to leave their shirts untucked. Company President Zhang Huarong, just arrived on a visit from China, spotted them through the window, sprang up and ran outside. The former People’s Liberation Army soldier harangued them loudly in Chinese, tugging at one man’s aqua polo shirt and forcing another’s shirt into his pants. Nonplussed, the workers stood silently until the eruption subsided.

 

Shaping up a handful of employees is one small part of Zhang’s quest to profit from Huajian’s factory wages of about $40 a month -– less than 10 percent the level in China.

 

“Ethiopia is exactly like China 30 years ago,” said Zhang, 55, who quit the military in 1982 to make shoes from his home in Jiangxi province with three sewing machines and now supplies such brands as Nine West and Guess?. “The poor transportation infrastructure, lots of jobless people.”

Reading the linked Bloomberg article, it becomes quite clear that it is not at all surprising that China has picked Ethiopia as its place to outsource labor: while 30 years ago the Chinese leveraged dragon was only just starting to stir, then-Marxist Ethiopia which back was considered one of the poorest countries in Africa if not the world, was in the midst of a great famine. And while things in China have changed drastically since the 1980s, in Ethopia, and most other African…
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The Chart That Keeps Mario Draghi Up At Night

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

With peripheral European sovereign bond yields at or near record lows, no matter how much GDP gets downgraded (Italy), banking system collapses (Portugal), or loan losses surge (Spain); things must be great for borrowers, right? Wrong! And this is exactly what keeps Mario Draghi up at night… In fact, as the following dismal reality chart shows, real corporate lending spreads are at record highs… crushing the credit-created-growth dream of a European Renaissance.

 

 

As Bloomberg Briefs’ David Powell notes,

One of the euro area’s greatest monetary problems is the large divergence in real corporate borrowing rates. For example, the spread between the real corporate borrowing rates in Portugal and Germany for loans over five years up to and including 1 million euros stood at 5.09 percentage points in May. The spreads versus Germany are 2.91 percentage points for Italy and 2.65 percentage points for Spain.

 

Those spreads rise using the latest inflation figures, which are for June. They measure 5.39 percentage points for Portugal, 3.51 percentage points for Italy and 3.25 percentage points for Spain. The spreads on loans of that category are among the highest. That may be because they are mostly provided to small and medium-sized corporations.

*  *  *
The bottom line is for these to improve, Draghi (or the ECB and thus the German taxpayers) will need to subsidize lending to SMEs in the periphery by a massive amount… the problem being, no one knows if there is even demand for this debt as the region deleverages in its balance sheet recession.





CEO Of Russia’s 2nd Largest Gold Producer Is “Horrified” At Market Manipulation

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The ongoing transition of gold price manipulation from conspiracy theory to conspiracy fact just escalated as Bloomberg reports, Peter Hambro, chairman of Russia’s 2nd largest gold producer Petropavlovsk Plc, said he was “horrified” by the manipulation of the London fix given its importance to the industry. One wonders just how many of these individuals, involved in the manipulation, Hambro is dinner-party friends with?

 

As Bloomberg reports,

“When I read the reports on what people had been doing to it, I was horrified,”Hambro said in an interview today. “It is something that is really important to people in the industry. It’s something that we use in a big way as we deliver our gold, that’s how we price.”

 

Barclays Plc was fined $44 million earlier this year after a trader sought to influence the gold fix in 2012. The gold fixing takes place twice a day by phone and is used by mining companies to central banks to trade or value the metal.

 

The banks conducting the century-old London gold fixing and the London Gold Market Fixing Ltd., which runs the procedure, are seeking to revamp the process. Deutsche Bank AG’s exit from the process this year as it scales back its commodities business left Societe Generale SA, Bank of Nova Scotia, HSBC Holdings Plc and Barclays to conduct fixings.

 

“To have something that we can rely on is vitally important,” said Hambro, who previously traded bullion at Marc Rich Group and Mocatta & Goldsmid Ltd. “I look forward to its continuing existence.”

*  *  *

While we believe Hambro is right to be “horrified;” after 10 years of manipulation (downwards at least two-thirds of the time in six different years between 2004 and 2013. In 2010, large moves during the fix were negative 92 percent of the time), we suspect he knew something was going on…





Europe – Here is What the Wealthy are Doing

Courtesy of ZeroHedge. View original post here.

Submitted by Capitalist Exploits.

By: Chris Tell at: http://capitalistexploits.at/

There are essentially three main reasons for using Banks:

  1. Storing cash for ease of transacting;
  2. Keeping cash safe from theft;
  3. Earning interest on your capital.

As a teenager I remember opening my first bank account, diligently saving my money and watching it slowly grow. Receiving “official” mail was cool. I felt important by simply receiving my monthly bank statements with my name on the envelope.

I was confident that by banking my cash I was protecting my capital. After all, it seemed a better idea than sticking it in my sock drawer, and I soon found that I was earning interest on my money, something else my sock drawer couldn’t provide.

Little did I know or understand how modern banking actually worked back then, though it’s only gotten worse since I opened that first bank account many years ago. Much worse, in fact.

In Europe, Banks reserve ratios have literally collapsed, despite what the “stress tests” conducted by Eurocrats want us to believe. Passing a European Banking stress test these days is a little like farting – easy to do, mostly hot air, and yet it typically warns of something else coming down that isn’t going to be pretty. And for those who see the writing on the wall, they know it stinks.

As Reuters recently reported:

European banks have a combined capital shortfall of about 84 billion euros ($115 billion), German weekly WirtschaftsWoche reported, citing a new study by the Organisation for Economic Cooperation and Development (OECD).

French bank Credit Agricole has the deepest capital shortfall at 31.5 billion euros, while Deutsche Bank and Commerzbank have gaps of 19 billion and 7.7 billion respectively, the magazine reported in a pre-release of its Monday publication.

If you’d like your eyes to bleed, you’re welcome to read the entire report here.

It is no surprise that cash withdrawal limits are being implemented across Europe, and cash transactions of more than a fleeting amount are actually being banned. Yep, it is actually illegal to purchase anything over 1,000 Euro using cash.

Want to have a big party night in Berlin? No problem.…
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The Ten Plagues That Are Hitting America Right Now

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Michael Snyder of The American Dream blog,

Why are so many plagues hitting the United States all of a sudden?  Yes, one can always point out bad stuff that is happening somewhere in the country, but right now we are facing a nightmarish combination of crippling drought, devastating wildfires, disastrous viruses, dying crops and superbugs that scientists don’t know how to kill.  And as you will see, we even have a plague of flies down in Mississippi.  So what in the world is going on? 

The following are ten plagues that are hitting America right now…

#1 The Plague Of Flies In The Upper Mississippi River Valley

This is perhaps the least dangerous plague, but it is also one of the most interesting.  Just recently, a plague of flies was so thick in the upper Mississippi River valley that it showed up on radar

The mayflies were detectable on radar around 845 pm and reports in the towns and cities began rolling in of the swarming and piles of mayflies. Numerous videos and pictures were circulating on social media, some of which are posted below as well.

 

The radar detected the flies about 845 pm, emanating from the river (the source) with echo values similar to that of light-moderate rain (35-40 dBZ). With a general south-to-north wind flow above the surface, the mayflies quickly moved north once in the air. As the flies dispersed moving north-northeast, they also gained altitude with some of the echo being detected as far north as Black River Falls and as high as 2500 feet above ground.

 

By late evening, mayflies were swarming in La Crosse, La Crescent, Stoddard and points up and down the river. While the emergence of mayflies from their river bottom mud dwelling can occur at various times through the warm season depending on the species, this particular emergence was that of the larger black/brown Bilineata species.

Here is one photo of the flies that was posted by the federal government…

Plague Of Flies In Mississippi - Government Photo Public Domain

#2 The Chikungunya Virus

As I wrote about the other day, down in Florida health officials have discovered the very first confirmed cases of the chikungunya virus to be transmitted…
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Creation Of S&P 500 ETFs Rises To All Time High

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

As if trying to figure out the impact of the central banks’ balance sheets and China’s record debt creation on stocks wasn’t enough of a complexity (actually it really isn’t that complex) for a market where fundamentals haven’t mattered in 5 years, there is also the issue of ETF basket creation, best known for the daily 3:30 pm ramp when ETFs catch up with their underlying components in a rising market, giving it all a procyclical turbo boost.

It is here that SocGen reports that in the past fortnight, there was record equity ETF creation, mostly focusing on the S&P 500. To wit:

In the last two weeks, ETFs listed in Europe posted record fortnight net share creations year-to-date, reaching $5.2bn, i.e. twice as high as the YtD  fortnightly average. This boost was primarily driven by record creations on equity ETFs ($3.5bn vs $1.3bn on average YtD) while fixed income and commodity indexations held up well, above YtD averages ($1.3bn share creations on fixed income ETFs and $350m on commodity ETFs).

 

 

Primary market: signals from ETF creations & redemptions

 

Equity ETFs: record creations were mainly driven by US equity indexations which claimed $1.7bn net creations on the period. One ETF in particular, Vanguard S&P 500 UCITS ETF (VUSA LN), gathered nearly $1.1bn over the period which was not the result of an isolated asset allocation decision. In addition, iShares S&P 500 UCITS ETF (CSSPX LN) showed strong creations, partially driven by switches out of another iShares ETF providing the same exposure but suffering from higher management fees (IUSA LN). The other ETFs in the category contributed positively to total creations, signalling broad demand for US equity indices. Actually US equities look expensive in terms of P/BV ratios. However, in the context of an accelerating US economy as expected by our macroeconomists, there may be reasons to remain confident in US equities as long as there are no sharp US rate hike or external shocks. In the eurozone, most regional and all country ETFs recorded net creations on the period, in contrast to UK and Swiss ETFs. Our equity strategists have been bullish eurozone equities for a number of reasons including structural reforms, reflation policy and the ECB’s accommodative stance.

 

 


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Iraqi Oil In Context: 60% Of OPEC Growth Expectations

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

While Iraqi crude represents about 4.4% of world production, or around 3.4 mmbd (5th largest in the world);

 

enabling investors to shrug at any fears that ISIS will spread to the South and interrupt this supply (since it will be 'contained'); what many do not comprehend is that in such a tight oil market as we currently have, Goldman warns that as much as 60% of OPEC’s expected capacity growth over the next five years to come from Iraq.

 

Production losses so far have been fairly small, and have only been felt domestically. However, the larger impact of the conflict potentially lies in the medium to long term.

Goldman explains the long-term implications for Iraq’s oil potential

Production losses so far have been fairly small, and have only been felt domestically. However, the larger impact of the conflict potentially lies in the medium to long term.

 

The uncertainty surrounding Iraq’s future will undoubtedly disrupt foreign investment and inevitably delay economic development until 1) the situation stabilizes, 2) security is guaranteed, and 3) the political landscape is defined and perceived as serious and sustainable. In the meantime, international companies (upstream, downstream, petrochemicals, etc.) will likely refrain from participating in new projects, even in the south. Trade partnerships will also be tested.

 

The recent insecurity has already prompted Iraq’s largest customers, India and China, to preemptively look for supply alternatives. Longer term, the instability and political deadlock introduce the risk that production growth from Iraq remains short of ambitious targets.

*  *  *

As we noted previously… Harvard's Meghan O'Sullivan concludes…

 
 

First, the US needs to view Iraq and Syria as completely interwoven – perhaps two countries, but one theater in reality. It needs to view IS for what it is, a threat to US and regional interests, not just as a threat to the Iraqi government. This would suggest more military involvement to push back against IS. Both in Iraq and Syria, the crisis is ultimately a political one, not a military one, so changing the politics is also key. But the US should not think that it can sequence military help only to follow political reform –


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Things In The Middle East Are About To Get Much Worse

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

There are major clashes occurring currently in The West Bank tonight as claims of 10s of thousands and Palestinians clash with Israeli soldiers. Sadly, as the photos below reveal taken moments ago show, things appear set to get very much worse.

 





 

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 jennifersurovy@yahoo.com 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.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743"

Thank you for you time!

 
 

Chart School

Bulls Take Notice - Caution Suggested as Credit Markets and Equity Markets Diverge

Courtesy of Doug Short.

Summary
  • Divergence with small cap stocks and junk bonds persists.
  • Credit spreads widening suggests building short-term financial stress.
  • Markets oversold and how risk areas react will be telling.

One of the most widely followed market theories is Dow Theory, which has been around for more than 100 years. The essence of Dow Theory is to focus on confirmations or non-confirmations between the Dow Jones Transportation Average and the Dow Jones Industrial Average for assessing market trends and reversals. If one of the indexes breaks out to a new high while the other does not, we have a non-confirmation and the potential for a market reversal.

Similar to Dow Theory I like to look for confirmation between the stock market and the credit markets. When one market does not confirm the other, caution is ...



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Zero Hedge

America The Divided: Everyone Knows We Have Problems But There Is Very Little Agreement On Solutions

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Michael Snyder of The Economic Collapse blog,

A house divided against itself will surely fall.  America is more divided today than it has been in decades, and the deep divisions that are tearing us apart continue to get even worse.  In fact, a newly released Rasmussen Reports national survey discovered that ...



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Phil's Favorites

The Piece Fits; Debunking Revisited

Courtesy of Mish.

It Fits 

Reader Eric comments "It is amazing what internet, twitter, etc. has done for the pursuit of truth.  Here is an individual who shows where the piece fits on the plane."

From @ErzaBraam



The Piece



For a report on the piece, please see Photo of MH17 Wreckage Proves Missile Attack

Contrary to popular belief t...



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All About Trends

Mid-Day Update

Reminder: David 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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Option Review

Starbucks Options Volume Rises Ahead Of Earnings After The Bell

Volume in Starbucks options is running approximately three times the average daily level for the stock as of 1:15 p.m. ET ahead of the company’s third-quarter earnings report after the close. Shares in the name are up roughly 1.0% just before midday to stand at $79.95. Traders of SBUX options today are more active in calls than puts, with the call/put ratio hovering near 2.0 as of the time of this writing. Much of the volume is in 25Jul’14 expiry options contracts, most notably in the $80 and $83 strike calls which have traded roughly 3,350 and 2,550 times respectively and in excess of existing open interest levels in both strikes. A portion of the volume in the $80 and $83 calls appears to be part of a spread trade.

...

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Insider Scoop

UPDATE: 3M Q2 Earnings Meet Estimates

Courtesy of Benzinga.

Related MMM Earnings Scheduled For July 24, 2014 Stocks To Watch For July 24, 2014 Nasdaq Seen Rallying on Apple, Facebook Results (Fox Business)

3M Company (NYSE: MMM) reported in-line earnings for the second quarter.

The St. Paul, Minnesota-based company posted a quarterly net profit of $1.27 billion, or $1.91 per share, versus a year-ago profit of $1.2 billio...



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Sabrient

Sector Detector: Bulls remain unfazed by borderline Black Swans

Courtesy of Sabrient Systems and Gradient Analytics

Despite a highly eventful week in the news, not much has changed from a stock market perspective. No doubt, investors have grown immune to the daily reports of geopolitical turmoil, including Ukraine vs. Russia for control of the eastern regions, Japan’s dispute with China over territorial waters, Sunni vs. Shiite for control of Iraq, Christians being driven out by Islamists, and other religious conflicts in places like Nigeria and Central African Republic. But last Thursday’s news of the Malaysian airliner tragically getting shot down over Ukraine, coupled with Israel’s ground incursion into Gaza, had the makings of a potential Black Swan event, which in my view is the only thing that could derail the relentless bull march higher in stocks.

Nevertheless, when it became clear that the airline...



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OpTrader

Swing trading portfolio - week of July 21st, 2014

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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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the latest Stock World Weekly. Please use your PSW user name and password to log in. (You may take a free trial here.)

#452331232 / gettyimages.com ...

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Market Shadows

Danger: Falling Prices

Danger: Falling Prices

By Dr. Paul Price of Market Shadows

 

We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about." 

All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...



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Digital Currencies

Bitcoin Vs Gold - The Infographic

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

While Marc Faber has said "I will never sell my gold," he also noted "I like the idea of Bitcoin," and the battle between the 'alternative currencies' continues. The following infographic provides a succinct illustration of the similarities and differences between gold and bitcoin.

Please include attribution to www.jmbullion.com with this graphic.

...

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Pharmboy

Biotechs & Bubbles

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

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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Promotions

See Live Demo Of This Google-Like Trade Algorithm

I just wanted to be sure you saw this.  There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.

If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



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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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