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01/07/19 – Tyler Durden: IMF Warns World “Dangerously Unprepared” For Upcoming Global Recession

In the starkest warning yet about the upcoming global recession, which some believe will hit in late 2019 or 2020 at the latest, the IMF warned that the leaders of the world’s largest countries are “dangerously unprepared” for the consequences of a serious global slowdown. The IMF’s chief concern: much of the ammunition to fight a slowdown has been exhausted and governments will find it hard to use fiscal or monetary measures to offset the next recession, while the system of cross-border support mechanisms — such as central bank swap lines — has been undermined, warned David Lipton, first deputy managing director of the IMF. Read More.

01/04/19 – Michael Snyder: The “Stock Market Crash Of 2018” Is Rapidly Transforming Into “The Financial Crisis Of 2019”

Stock markets are crashing all over the world, we are seeing extremely violent “flash crashes” in the forex marketplace, economic conditions are slowing down all over the globe, and fear is causing many investors to become extremely trigger happy. The stock market crash of 2018 wiped out approximately 12 trillion dollars in global stock market wealth, but things were supposed to calm down once we got into 2019.  Read More.

01/03/19 – Richard Rosso: Bear Market Awareness Checklist

In his seminal tome – “Anatomy of the Bear – Lessons from Wall Street’s Four Great Bottoms,” which should be required reading for advisors and professional investors, author Russell Napier provides comprehensive analysis of market where stocks cycle from overvalued to undervalued (14 years on average) coupled with chronological events which marked bear market bottoms of 1921, 1932, 1949 and 1982. Read More.

12/31/18 – Money Metals News Service : Fake Markets and Return of the “Plunge Protection Team”

It’s amazing what passes as a market these days.

Stocks rallied during the Christmas week, and the mainstream financial press would like you to believe bargain hunters swooped in after the weeks of heavy selling to grab some deals. The truth is there are very few actual people still evaluating the merits of publicly traded companies.

The markets are driven by programmed trading and central planning. The artificial nature of markets was on full display last week. Let’s walk through the series of events. Read More.

12/30/18 – Tyler Durden: A History Of Market Crashes In Charts

As stocks plunged toward their harrowing, bear-market lows earlier this month, Omega Advisors CEO Leon Cooperman infamously railed against algorithmic traders and HFT for creating distortions in the market that caused the cascading selloff (though, as we joked at the time, no fingers were pointed when stocks soared off the lows following a massive pension buy order). Read More.

12/28/18 – Mises Institute: The Depression of 2019-2021?

The profound question which transcends all this day-to-day market drama over the holidays is the nature of the economic slowdown now occurring globally. This slowdown can be seen both inside and outside the US. In reviewing the laboratory of history — especially those experiments featuring severe asset inflation, unaccompanied by high official estimates of consumer price inflation — three possible “echoes” deserve attention in coming weeks and months. (History echoes rather than repeats!) Read More.

12/31/18 – Charles Hugh Smith: The Crisis of Capital

These three dynamics render capital increasingly vulnerable to catastrophic losses as backstops and distorted markets fail.

The undeniable reality of the 21st century economy is that capital has gained while labor has stagnated. While various critics quibbled about his methodology, Thomas Piketty’s core finding–that capital expanded faster than GDP and wages/salaries (i.e. earned income from labor)–is visible in these charts. Read More.

12/28/18 – John Maulden: Bear Markets, Fed Mistakes, and Quick Shot

Last week. I argued Jerome Powell did the right thing by raising rates a mere 25 basis points. He forcefully declared the Fed’s independence from the market and politicians for the first time since Volcker. Greenspan, Bernanke, and, in particular, Yellen all gave the markets a “put” option—basically a third unofficial mandate to make sure that asset prices keep rising. Now, of course, that’s not the way they would express it, but that is, in fact, what they did. They created a series of bubbles, which spectacularly (and predictably) blew up, particularly screwing the little guys who didn’t know better and could least afford losses. We should not be where we are today, and we would not be here today, without their seriously screwing up Federal Reserve policy. Read More.

12/28/18 – Tyler Durden: Biggest Buy Order In History Hits, Spiking Stocks… But Is It The Pensions?

Update: and there it is – at precisely 2:39pm, a TICK print of 1775 was registered, signifying the biggest buy program of all time. Now, the only question – is this the real “pension buying” deal… or someone trying to fake out the algos into buying and trapped shorts into covering. The one problem with today’s buying fury: a burst of record buy orders only managed to push the Dow Jones 200 points higher, far less than yesterday’s 800+ point frenzy, which means that there are far more sellers into this ramp than yesterday. Read More.

12/28/18 -Eric Sprott: “Are We Surprised Stocks Are Going Down? We Shouldn’t Be.”

Stocks crashed on Monday before surging back in dramatic fashion on Wednesday following Christmas. But the 1000-point run didn’t last long. The market sank dramatically again on Thursday before staging a late-session comeback in a swing that saw the Dow Jones Industrial Average span over 870 points for the day.

To put it mildly, it’s been a dramatic year for world markets. In all, $17 trillion worth of assets have been lost so far in 2018, a number that represents almost 20% of the world economy. Read More.

12/27/18 – Tyler Durden: Investors Are Speechless: “It’s Like Watching Pulp Fiction”

With market action becoming increasingly surreal and the panicked, vertigo-inducing bear market rallies (spawned by a record $64 billion pension fund reallocation into stocks in a historically illiquid market) reminiscent of the chaos observed at the depths of the financial crisis, it is only appropriate that some of the quotes Bloomberg picked for its daily wrap piece which commemorated the biggest intraday reversal since 2010, be just as surreal. Read More.

12/26/18 – Tyler Durden: WSJ Discovers How Algos Broke The Market

For years, as the market rose in seemingly uninterrupted fashion buoyed by trillions in excess central bank liquidity and algos programmed to buy any dip while frontrunning each and every buy order, virtually nobody – except for a few “fringe”, “fake news” blogs – complained about the threat posed by algo trading and the quiet but dire deterioration in market liquidity.

Now that the S&P has finally suffered its first bear market in a decade, the mass media is out in full force looking for scapegoats and, predictably, in an attempt to deflect attention from the biggest, and only, culprit behind each and every bull-bust cycle namely the US central bank, has focused on “computerized trading.” Read More.

12/24/18 – Reuters: Top Trump official calls bankers, will convene ‘Plunge Protection Team’

WASHINGTON (Reuters) – U.S. President Donald Trump’s Treasury secretary called top U.S. bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team.”

U.S. stocks have fallen sharply in recent weeks on concerns over slowing economic growth, with the S&P 500 index .SPX on pace for its biggest percentage decline in December since the Great Depression. Read More.

12/23/18 – Reuters: Top Trump official calls bankers, will convene ‘Plunge Protection Team’

WASHINGTON (Reuters) – U.S. President Donald Trump’s Treasury secretary called top U.S. bankers on Sunday amid an ongoing rout on Wall Street and made plans to convene a group of officials known as the “Plunge Protection Team.”

FILE PHOTO: U.S. Treasury Secretary Steven Mnuchin speaks during his interview with Reuters in Jerusalem October 21, 2018. REUTERS/Ronen Zvulun/File Photo
U.S. stocks have fallen sharply in recent weeks on concerns over slowing economic growth, with the S&P 500 index .SPX on pace for its biggest percentage decline in December since the Great Depression. Read More.