Finance & Economy News – Man Warns of 50-80% Collapse in Stock Market

AMTV – Man Warns of 50-80% Collapse in Stock Market
In today’s video, Christopher Greene of AMTV warns of a 50-80% Collapse in Stock Market.

AMTV – Stock Market Crash 2017-18
In today’s video, Christopher Greene of AMTV reports on Stock Market Crash 2017.

X22Report Spotlight – Fed Insider: We Have Been Put On Notice, The Debt Is Unsustainable:Danielle DiMartino Booth

World stocks down over fears of Fed stimulus cut

World stocks down over fears of Fed stimulus cut

KUALA LUMPUR, Malaysia (AP) — World stock markets were in the red Thursday after strong U.S. economic data renewed fears that the Federal Reserve may start cutting its monetary stimulus this month.

In Europe, most markets were muted ahead of European Central Bank and Bank of England policy meetings. The FTSE 100 index of leading British shares was flat at 6,509.39 while Germany’s DAX was also almost unchanged at 9,142.31. The CAC-40 in France shed 0.1 percent to 4,143.35.

Futures pointed to lackluster trading on Wall Street, with Dow and S&P 500 futures little changed.

A run of stronger economic reports has sparked anxiety that the Fed may decide to begin tapering off its $85 billion of monthly asset purchases at a Dec. 17-18 policy meeting.

A private payrolls report Wednesday from ADP said that U.S. businesses did the most hiring in a year in November, adding 215,000 jobs. October’s increase was also revised up to 184,000. The official data will be released Friday.

Stan Shamu, market strategist with IG in Melbourne, Australia, said new home sales were also very strong, up 25 percent in October and the highest monthly percentage gain since 1980.

“This ADP print certainly raises upside risk to Friday’s November payrolls which are expected to come in at 184,000. A non-farm payrolls print around 200,000 is what many analysts feel is needed to reinforce the December taper argument,” he said.

Since the stimulus has helped shore up stock markets for several years, its potential withdrawal has raised roiled investors, even if it is predicated on an improving economic outlook.

Banks Warn Fed They May Have To Start Charging Depositors

Banks Warn Fed They May Have To Start Charging Depositors

The Fed’s Catch 22 just got catchier. While most attention in the recently released FOMC minutes fell on the return of the taper as a possibility even as soon as December (making the November payrolls report the most important ever, ever, until the next one at least), a less discussed issue was the Fed’s comment that it would consider lowering the Interest on Excess Reserves to zero as a means to offset the implied tightening that would result from the reduction in the monthly flow once QE entered its terminal phase (for however briefly before the plunge in the S&P led to the Untaper). After all, the Fed’s policy book goes, if IOER is raised to tighten conditions, easing it to zero, or negative, should offset “tightening financial conditions”, right? Wrong. As the FT reports leading US banks have warned the Fed that should it lower IOER, they would be forced to start charging depositors.

In other words, just like Europe is already toying with the idea of NIRP (and has been for over a year, if still mostly in the rheotrical and market rumor phase), so the Fed’s IOER cut would also result in a negative rate on deposits which the FT tongue-in-cheekly summarizes “depositors already have to cope with near-zero interest rates, but paying just to leave money in the bank would be highly unusual and unwelcome for companies and households.”

If cutting IOER was as much of an easing move as the Fed believes, banks should be delighted – after all, according to the Fed’s guidelines it would mean that the return on their investments (recall that all US banks slowly but surely became glorified, TBTF prop trading hedge funds since Glass Steagall was repealed, and why the Volcker Rule implementation is virtually guaranteed to never happen) would increase. And yet, they are not:

 
 

Executives at two of the top five US banks said a cut in the 0.25 per cent rate of interest on the $2.4tn in reserves they hold at the Fed would lead them to pass on the cost to depositors.

 

Banks say they may have to charge because taking in deposits is not free: they have to pay premiums of a few basis points to a US government insurance programme.

 

“Right now you can at least break even from a revenue perspective,” said one executive, adding that a rate cut by the Fed “would turn it into negative revenue – banks would be disincentivised to take deposits and potentially charge for them”.

 

Other bankers said that a move to negative rates would not only trim margins but could backfire for banks and the system as a whole, as it would incentivise treasury managers to find higher-yielding, riskier assets.

 

“It’s not as if we are suddenly going to start lending to [small and medium-sized enterprises],” said one. “There really isn’t the level of demand, so the danger is that banks are pushed into riskier assets to find yield.”

All of the above is BS: lending has never been a concern for the Fed because if it was, then one could scrap QE right now as an absolute faiure. Recall that as we showed recently, the total amount of loans and leases in commercial US banks has been unchanged since Lehman, with the only rise in deposits coming thanks to the fungible liquidity injected by the Fed.

Furthermore, contrary to what the hypocrite banker said that “the danger is that banks are pushed into riskier assets to find yield”, banks are already in the riskiest assets: just look at what JPM was doing with its hundreds of billions in excess deposits, which originated as Fed reserves on its books – we explained the process of how the Fed’s reserves are used to push the market higher most recently in “What Shadow Banking Can Tell Us About The Fed’s “Exit-Path” Dead End.”

Yasiin Bey (aka Mos Def) force fed under standard Guantánamo Bay procedure

Yasiin Bey (aka Mos Def) force fed under standard Guantánamo Bay procedure
Subscribe to the Guardian HERE: http://bitly.com/UvkFpD

As Ramadan begins, more than 100 hunger-strikers in Guantánamo Bay continue their protest. More than 40 of them are being force-fed. A leaked document sets out the military instructions, or standard operating procedure, for force-feeding detainees. In this four-minute film made by Human Rights organisation Reprieve and Bafta award-winning director Asif Kapadia, US actor and rapper Yasiin Bey (formerly known as Mos Def), experiences the procedure.

Warning: some viewers may find these images distressing.

Read more about Ramadan force-feeding at Guantánamo Bay HERE: http://www.guardian.co.uk/world/2013/…
http://www.guardian.co.uk/world/2013/…

Fed up? US expected to cut cash stimulus

Fed up? US expected to cut cash stimulus

The main question ahead of the key Fed meeting on Tuesday is whether the world’s largest economy can survive on less government monetary stimulus. Data shows the economy is still luke-warm but politics will encourage the Fed to slow quantitative easing.

               

Chair Ben Bernanke gave strong hints in August that the Fed would decide to   begin tapering its stimulus in September. If he reneges it could   destabilize markets and jar investors. 

A final decision will be reached on September 18 at the   conclusion of the two-day meeting of Federal Open Market   Committee (FOMC).