Debt Rattle June 28 2016

[Raúl Ilargi Meijer]

Walker Evans Saint Charles Street. Liberty Theatre, New Orleans 1935 • Stocks Halt Brexit Selloff as Pound Rebounds With Commodities (BBG) • Asian Sto
[See the full post at: Debt Rattle June 28 2016]

[Dr. Diablo]

“The FTSE 100 ended 2.6% lower [..] ..wiping off nearly $132 billion since the referendum…”

Careful, that money probably wasn’t “lost”, exactly, it rotated out of FTSE and other exchanges and INTO something else. Bonds, mostly, dropping many interest rates from “stupid” to “beyond stupid.” Since the Bond market is well over 10x larger, this doesn’t have an equal effect. But unless players went bankrupt, reversed margin and paid off debt, etc then the money is all out there in something. Just not the FTSE.

[TheTrivium4TW]

>>But unless players went bankrupt, reversed margin and paid off debt, etc then the money is all out there in something. Just not the FTSE. <<

Good Dr., while your point is well taken and true to an extent, it is an oversimplification. As an example, if one house sells for a 10% discount in a community at the start of a recession, all homes might be discounted 10% without anyone else selling. That “money” didn’t “go somewhere else.” In fact, it never really existed in a real form, just as a number on a piece of paper.

My wife wants to stay put whereas I want to move to a lower cost of living location and pocket the difference in home prices (a sizable chunk of change). How can I short the value of my house? lol BTW, when the value drops, I don’t expect that most of the money went somewhere else, although some surely did.

[Nassim]

It seems that someone is not happy with Erdogan and blew up Istanbul airport’s international departures area. It is unlikely to have been a false flag as it does Erdogan no good whatsoever. I put this in FT.com as a plausible explanation:

It would seem that Turkey’s allies – NATO and the Wahabis (ISIS, Saudi Arabia etc.) – are not happy about Erdogan apologising in writing for shooting down that Russian plane over Syria.

“Turkish president apologises to Putin over downing of fighter jet”

https://www.ft.com/cms/s/0/00ebddd0-3c82-11e6-9f2c-36b487ebd80a.html

Brexit seems to have convinced Erdogan that the European Union will make a peace deal with Russia and he wants to make sure that he is not forgotten. The Turkish newspapers – all government controlled – had huge headlines declaring the end of the “Crusader Union”. An article explaining that would help FT readers reassess their opinion of the judgement of the English electorate.

Interesting times!

[Raleigh]

Nassim – interesting. So you’re saying that the U.S./Saudi Arabia/NATO purposely “hit” Turkey in order to teach Erdogan a lesson. Here I was thinking that Erdogan didn’t move unless told to by the U.S., but, you’re probably right, because he seems like a loose cannon. I also think that when the tax haven money of Cameron’s father was leaked, that too was not a mistake (as some have suggested); they aimed directly at him. Could be they aimed at Jo Cox too in order to get what they wanted.

Nigel Farage got a booing in the European Parliament today, but he took it all in stride.

[Raleigh]

Nigel Farage is interviewed after his speech in European Parliament. What he says makes good sense. Farage comes on at 0:44. He wants free trade, but no freedom of movement, and he says if Merkel doesn’t go along, there will be a lot of unemployed German car workers soon. When Farage steps down from the European Parliament, he could become a comedian. That guy makes me laugh.

Merkel has her own ideas, saying that the U.K. can’t cherry-pick what they want.

“In a speech to the Bundestag on Tuesday morning, Ms Merkel spelt out to London that the EU’s internal freedoms were indivisible — if Britain, like Norway, wanted access to the internal market then, like Norway, it would have to accept freedom of movement.”

https://mishtalk.com/2016/06/28/no-cherry-picking-says-merkel-risk-of-trade-collapse-says-mish/

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