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Jim Grant: “Markets Trust Too Much In The Presence Of Central Banks”

Authored by Christoph Gisiger via Finanz und Wirtschaft, James Grant, Wall Street expert and editor of the renowned investment newsletter «Grant’s Interest Rate Observer», warns of the unseen consequences of super low interest rate and questions the extraordinary actions of the Swiss National Bank. Nearly ten years after the financial crisis, extraordinary monetary policy has become the norm.   The financial markets seem to like it: Stocks are close to record levels and the global economy is finally picking up. Nonetheless, James Grant sees no reason to sound the all-clear signal. The sharp thinking and highly regarded editor of the iconic Wall Street newsletter «Grant’s Interest Rate Observer» argues that historically low interest rates are distorting the perception of investors.   »Princ...

Sessions Exploring Special Counsel For Demoted DOJ Official Tied To Fusion GPS, CIA

Following a Tuesday call by President Trump’s outside counsel Jay Sekulow for a special counsel to investigate recently demoted DOJ Official Bruce Ohr and his wife Nellie Ohr’s contacts with opposition research firm Fusion GPS during the summer and fall of 2016, Attorney General Jeff Sessions is reportedly exploring whether or not to move forward with this option. Attorney General Jeff Sessions In a statement issued hours after Sekulow’s appearance on Fox News, Sessions said: “I’ve put a Senior Attorney, with the resources he may need, to review cases in our office and make a recommendation to me, if things aren’t being pursued that need to be pursued, if cases may need more resources to complete in a proper manner, and to recommend to me if the standard...

A Gold Guy’s View Of Crypto, Bitcoin, And Blockchain

Authored by Alan Stanczyk via Medium.com, Bitcoin was on my radar far back as 2011, but for years, I didn’t think much of it. It was a curiosity. Nothing more. Sort of like the virtual money you use in World of Warcraft or something. In 2015, looking deeper, I slowly (not the sharpest tool in the shed) arrived at that “aha” inflection point that most advocates of honest money arrive at. I realized that a distributed public ledger has the power to change, well, everything. Changing All The Things One aspect of crypto that appealed to me was that this technology had the potential to bring “un-banked” people from around the world into the modern financial system. It potentially granted access to digital transactions without the use of banks for billions of people that were formerly excluded f...

U.S. ready to talk but N.Korea must be ready to change course: Tillerson

Secretary of State Rex Tillerson said on Tuesday the United States was prepared to talk to North Korea whenever it is ready but Pyongyang must come to the negotiating table willing to make choices to change course on its nuclear and missile programs.

WTI/RBOB Higher After Surprisingly Large Crude Draw

WTI/RBOB tumbled today after fears about cracks in one of the world’s most important oil pipelines faded. Prices were below last week’s pre-API levels as hope was high that last week’s big surprise product build was a fluke but once again we saw notable product builds, but prices popped higher as a 7.382mm crude draw was much bigger than expected.   API Crude -7.382mm (-2.89mm exp) – biggest draw in 4 months Cushing -2.704mm (-2.5mm exp) Gasoline +2.334mm Distillates +1.5384mm Hope was high that last week’s unexpectedly large product build was a one-off WTI/RBOB prices were below the pre-API levels from last week heading into the print.. The Forties outage is “a measurable disruption that the market can apparently cope with,” Thomas Finlon, director of Energy ...

Republicans Reach Tentative Tax Agreement: Raise Corporate Tax To 21%, Cut Individual Tax To 37%

One month ago, we speculated that in order to pass the GOP tax plan, Congress would end up having to raise the proposed corporate tax rate from 20% to 25%, because as it stands now, there is simply not enough sources of funding. In the end corp tax will be agreed upon at 25% starting 2018, as per the Goldman plan — zerohedge (@zerohedge) November 9, 2017 And while it’s not at 25% yet, it’s slowly getting there, because as The Hill report as part of the ongoing negotiations between the House and Senate, Republican negotiators have reached a tentative agreement to raise the corporate tax rate in their joint House-Senate tax bill from 20 to 21 percent.  The modestly higher corporate tax rate end a “furious debate” within the GOP conference, even as both conservatives i...

Bitcoin, Bonds, & Bullion Bounce As Rand Paul Ruins Today’s Tax-Deal Ramp

Cliffhanger indeed…   From Rand Paul’s somewhat confusing tweets, the divergence between bond and bullion and the dollar and stocks is clear…   On the day, Nasdaq and Small Caps were worst, The Dow best and Trannies tumbled into the red into the close…   VIX was trampled early on but after Rand Paul’s comments started to roll higher…   And, once again ‘High Tax’ companies continue to underperform ‘Low Tax’ companies…   Notably a big divergence is starting again in the Momentum and Value factors…   Despite the notable rally after Rand Paul’s comments, treasury bond yields ended higher on the day (if marginally)…   But once again the long-end outperformed, flattening the curve…   The Dollar is up for th...

Not A Bubble?

Meet The Crypto Company – up almost 20,000% since inception in September… To a market cap of over $12.6 billion… Grant’s Interest Rate Observer drew the world’s attention to this ‘company’ yesterday… Shares in over-the-counter name The Crypto Company, which listed in May and traded around $20 as recently as Dec 1st, have gone on a parabolic run in the last ten days – trading as high as $642.   That gives the Malibu, California-based business a market capitalization of $12.6 billion.   Valuing the Crupto Co. is somewhat difficult, as the only public filing on Edgar (the SEC website), is its securities offering document, in which it ticks the box “decline to disclose” under revenue range.   The company’s website does not...

These Were The Biggest Market Shocks In 2017… And What 2018 Has In Store

With 2017 almost entirely in the rearview mirror, the most memorable – and we clearly use the term loosely – and certainly historic feature of the past year was the complete collapse in volatility. In fact, as Bank of America noted last week, by one measure the Dow traded in its tightest trading range in all history in 2017. By other, more conventional measures, volatility in 2017 has been the lowest on record, with the following “stunning” VIX chart from Citi hardly needing an explanation: it shows the number of days with a sub-10 close in any 6 month window. No matter how one quantifies it, hoiwever, one thing is certain: as DB said in its 2018 derivative outlook, “events produced very little vol in 2017. Vol spikes were few and shallow, and so technicalmark...

Trump’s attack on Senator Gillibrand “nasty”: Senator Schumer

U.S. Senate Democratic Leader Chuck Schumer said on Tuesday that President Donald Trump’s tweeted attack on Senator Kirsten Gillibrand was “nasty,” but Schumer did not join Gillibrand’s call for Trump to resign the presidency over sexual misconduct accusations.

Small Business Optimism Spikes To Highest Since 1983, There’s Just One Thing…

The NFIB Small Business Optimism survey hit this morning and it surged to near record highs…   With Small Businesses having never been so excited to hire people ever… Construction, manufacturing and professional services registered notable increases in planned hiring. The figures indicate the recent solid pace of job growth will be sustained and help extend the economic expansion. And, of course, President Trump was over the moon… Consumer Confidence is at an All-Time High, along with a Record High Stock Market. Unemployment is at a 17 year low. MAKE AMERICA GREAT AGAIN! Working to pass MASSIVE TAX CUTS (looking good). — Donald J. Trump (@realDonaldTrump) December 12, 2017 Which leaves us wonder, if everything’s so awesome, why are only a net 17% of firms expecting ...

Alabama voters choose senator in race with high stakes for Trump

MONTGOMERY, Ala. (Reuters) – Voters in Alabama headed to the polls on Tuesday in a hard-fought U.S. Senate race with high stakes for President Donald Trump, who has endorsed fellow Republican Roy Moore in spite of allegations against him of sexual misconduct toward teenagers.

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