Tuesday, January 19, 2016

The Fed Has Painted Itself Into A Corner......

The Fed Has Painted Itself Into A Corner 

The current situation's severity is very similar to what you get before you slip into a crisis....The bumpy ride is not over yet... stay on guard.

CREDIT SUISSE: China risks 'losing control' of the economy.

China's Top Stock Regulator Gives Up On "Immature" Market, Hands In Resgination.

Xiao Gang, chairman of China's securities regulator, has offered to resign amid ongoing turmoil in the country's equity markets - turmoil which he says stems from "inexperienced investors, an imperfect trading system and inappropriate supervision mechanisms."

Crude oil, after falling to a fresh 12-year low on Friday, has continued to slide in early Asian trade on Monday. At one point earlier in the session front-month Brent crude futures – the global benchmark – tumbled as low as $27.67 a barrel before bouncing in recent trade.

Italian Banks Collapse, Short Sales Banned As Loan Loss Fears Mount

Italian bank stocks are crashing (with BMPS down 40% year-to-date) asReuters reports that investors are growing increasingly nervous about how the sector will cope with lower interest rates and a 200 billion euro ($218 billion) pile of loans that are unlikely to be repaid. The broad banking sector is down 4% withstocks suspended, and in light of this bloodbath, Italian regulators have decided in their wisdom, to ban short-selling of some bank stocks (which has driven hedgers into the CDS market, spking BMPS credit risk).

Francois Hollande Admits Socialist Policies Failed, Declares "Economic State Of Emergency"

Remember when showing 'progress' in Europe was as simple as pointing to your high stock market or low bond yields to "prove" everything is awesome. Well for Francois Hollande, the days of hiding behing manipulated data are over and the open kimono reveals a nation whose stability is wracked by record unemployment. In a desperate-for-re-election speech today, socialist leader Hollande admitted his policies needed reform and that France is an economic "state of emergency."

At this point most Americans receive benefits of one type or another from their government; and most Americans receive their opinions from the media. The pervasive difficulty here lies in the erroneous concept that there can be a return to freedom whilst maintaining the dependency upon largesse from the State."Government is the great fiction, through which everybody endeavours to live at the expense of everybody else."

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