John Vachon Auto of migrant fruit worker at gas station, Sturgeon Bay, Wisconsin Jul 1940 • Rate Rally Fizzles as Dow Loses 621 Points in 2 Days (WSJ) • Explaining Today’s “Massive Stop Loss” Quad-Witching Market Waterfall (ZH) • Hedge Funds Cut Fees To Stem Client Exodus (FT) • History of Junk Bond Meltdowns Points to Trouble (BBG) • IEA Sees ‘Peak Coal’ As Demand For Fossil Fuel Crumbles In China (AEP) • Congress Slips Controversial CISA Law In With
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DPC Times Square seen from Broadway 1908 I was reading something yesterday by my highly esteemed fellow writer Charles Hugh Smith that had me first puzzled and then thinking ‘I don’t think so’, in the same vein as Mark Twain’s recently over-quoted quote: “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” I was thinking that was the case with Charles’ article. I was sure it just ain’t
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James F. Gibson Tent of A. Foulke, Horse Artillery, Brandy Station, Virginia 1864 • Sell The Bonds, Sell The Stocks, Sell The House – Dread The Fed! (Stockman) • Oil Below $35, Set For Third Weekly Loss As Supply Glut Seen Relentless (BBG) • Natural Gas Falls to All-Time Inflation-Adjusted Low (WSJ) • This Year’s Worst Commodity Is One You Probably Can’t Pronounce (BBG) • Slowing Boats From China Provide Clue to Health of World Trade (BBG) • Fed Will
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Unknown Fed Ponders Interest Rates 1917 • Fed Raises Interest Rates, Citing Ongoing US Recovery (Reuters) • Fed Removes Reverse Repo Cap to Ensure Control Over Rates (BBG) • Fed May Have To Drain $1 Trillion In Liquidity To Push Rates 25 bps Higher (ZH) • Fed Leaves China Only Tough Choices (BBG) • The Fed By The Numbers – And Why They Are Wrong (Steve Keen) • Baltic Dry Index Plunges to Fresh Record Low Amid China Steel Slump
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DPC Elephants in Luna Park promenade, Coney Island 1905 • Fed Weighs Merits Of Jumbo Portfolio In Post-Crisis Era (Reuters) • This Is a Test of the Shadow Banking System (BBG ed.) • Why High-Yield Debt Selloff Isn’t 2007 All Over Again. Or Is It? (BBG) • Foreigners Sell A Record $55.2 Billion In US Treasuries In October (ZH) • The Guy Who Warned About Libor Sees Fast-Money Financing as New Risk (Alloway) • The Current Credit Crisis Might Be
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Unknown No Dog Biscuits Today • Stephen Roach: China Is The Biggest Commodities Story Since WWII (BBG) • Fitch Warns Of Effects Of Sharp China Slowdown (CNBC) • Rio Tinto CEO Says Iron Ore Rivals ‘Hanging on by Their Fingernails’ (BBG) • Miners Shoveling Furiously Prop Up Aussie GDP as Iron Ore Melts (BBG) • US Natural-Gas Prices Plunge Toward A 14-Year Low (MarketWatch) • Never Mind $35, The World’s Cheapest Oil Is Already Close to $20 (BBG) • Junk
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Dorothea Lange White Angel Breadline San Francisco 1933 Many people are cheering now that yesterday Marine Le Pen and her Front National (FN) party didn’t get to take over government in any regions in the France regional elections. They should think again. FN did get a lot more votes than the last time around, and, though she will be a little disappointed after last weekend’s results, it’s exactly as Le Pen herself said: “Nothing can stop us”. And instead of
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Harris&Ewing President Hoover lights Nation’s Capital community Xmas tree 1929 • The New American Dream Is To Have A Job (FT) • The End Of The Bubble Finance Era (Stockman) • “It’s An Epic Bloodbath” : The 2015 Junk Bond Heatmap (ZH) • The Coincidences Are Just Too Eerie: The Last Time CCC Yields Were Here (ZH) • Yuan Declines to Four-Year Low as New Index Signals Weakness (BBG) • Oil Sinks to Lowest in Almost 7 Years as Iran
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Marion Post Wolcott “Center of town. Woodstock, Vermont. Snowy night” 1940 • Why A 0.25% Rate Hike Should Have Big Banks Nervous But Probably Won’t (Bern) • “Coppock Guide” Signals A Bear Market Is At Hand (ZH) • Junk-Bond Rout Deepens, Sends Shockwaves Through Stocks, Other Markets (WSJ) • Junk-Bond Fund’s Demise Highlights SEC Mutual-Fund Worries (WSJ) • China Steel Output Slumps to a One-Year Low as Prices Collapse (BBG) • Missing Chinese Billionaire ‘Assisting Authorities in an Investigation’ (WSJ)
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Nickolay Lamm Jefferson Memorial under 25 feet of water French Foreign Minister Laurent Fabius just announced, in Paris, a “legally binding agreement” that no-one has agreed the financing for. We can hear a couple thousand lawyers across the globe snicker. But it’s all the COP21 ‘oh-so-important’ climate conference managed to come up with. No surprises there. They couldn’t make the 2ºC former goal stick, so they go for 1.5ºC this time. All on red, double or nothing. Because who really
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