The Mess That Greenspan Made - Part 2

Wednesday Morning Links

MUST READS
Why China Had To Crash Part 1 – Forbes
China stocks extend 5-day losing streak – CNN/Money
U.S. stocks stage dramatic reversal, raising new fears – Washington Post
Stock-Market Tumult Exposes Flaws in Modern Markets – WSJ
Political Risks May Foil Economic Reform in China – NY Times
Is Asia Set For Another Financial Crisis? Here’s Goldman’s Take – Zero Hedge
The Red Cavalry Comes – Goldman Says Back-Up The Trucks, Again! – Contra Corner
China Authorities Escalate Blame Game as Stock Slide Worsens – Bloomberg
Counting the Cost of Gov’t Intervention in Stock Market – Caixin Online
Many Chinese investors nonchalant about stock market plunge – LA Times
It’s time to lay siege to the robber barons of high finance – Independent
Trump, Elvis and the economic crisis – The Hill

MARKETS/INVESTING
Stock futures rise after China injects $21.8 billion – Reuters
Emerging market assets weaken again despite China’s rate cut – Reuters
JPMorgan Sheds $27B in Market Cap in Three Trading Sessions – Wall St. on Parade
Chinese Margin Debts Shrink by $156 Billion as Trades Unwind – Bloomberg
Beijing appears to wind down share-buying — now what? – Washington Post
For Oil Producers Cash Is King, and That’s Why They Can’t Stop Drilling – Bloomberg
Gold falls as nervous investors monitor China developments, Fed policy – Reuters
Why gold was the best buy in 2008-9 crash and will be this time too – Arabian Money
Natixis Offers A Strategy To Play This Gold Market – Kitco
Chinese gold imports rise 48% – Mining.com

ECONOMY/WORLD/HOUSING/BANKING
As World Markets Drop, U.S. Economic Confidence Index at -14 – Gallup
It’s Often a Curse to Be Blessed With Commodities – Bloomberg
Hong Kong Dollar Options Suggest Peg Is Most at Risk in a Decade – Bloomberg
Brazil judge says president’s ex-chief of staff may have been bribed – Reuters
First the Miners, now the Banks, then Property? A Hard Landing for Australia – Wolf Street
U.S. short sellers betting on Canadian housing crash: ‘An accident waiting to happen’ – NP
The Most Affordable Place in the U.S. to Raise a Family – WSJ
Why market turmoil won’t prevent Federal Reserve from raising interest rates – NY Times
When The FOMC Completely Loses The ‘Inflation’ Argument – Alhambra Partners
Ray Dalio sees Fed launching quantitative-easing measures – MarketWatch

 

The Emporer is Indeed Naked

From Alberto Gallo, head of credit research at RBS, via this item at the Fiscal Times comes this handy guide to post-Great Recession monetary policy and its various effects.

How long will it take for this to become the mainstream view?

After the events of the last few days or so, perhaps sooner rather than later.

Tuesday Morning Links

MUST READS
China cuts interest rates after days of market turmoil – BBC
China’s Stock Futures Surge After Rate Reduction – Bloomberg
Fed gets new excuse to not raise rates – USA Today
Market talk suddenly turns to specter of QE4 – CNBC
Lockhart: Planned Rate Hike Complicated by China – Bloomberg
High-Frequency Trading Firms Just Made A Killing – Barron’s
Trading was halted 1,200 times Monday – CNN/Money
China’s market Leninism turns dangerous for the world – Telegraph
Cuban: China fell prey to top mistake an investor can make – WSJ
We have reason to believe the unthinkable is happening to China’s president – BI
Japan’s Aso Says China Policies Stirring Concerns in Markets – Bloomberg
The Politics of Income Inequality – Fiscal Times

MARKETS/INVESTING
Global markets rebound on China rate cuts – AP
Don’t Panic About the Stock Market—Yet – Politico
A Month That Hedge Funds Would Sooner Forget – NY Times
Jeffrey Gundlach says stocks have further to fall – MarketWatch
5 tips for panicked investors to weather market storm – USA Today
How I made money when the Dow lost 1,000 points – CNN/Money
Gold falls as stocks, dollar recover; palladium hits 5-year low – Reuters
Gold dips; haven demand weakens as ‘stench of fear’ abates – MarketWatch
Peak Gold Is Looming And It Might Not Change a Thing for Bullion – Bloomberg
Canadian mining stocks outperform metals prices – Mining.com

ECONOMY/WORLD/HOUSING/BANKING
Great Recession Job Losses Severe, Enduring – NBER
Stock sell-off to test US economy’s resiliency – LA Times
A global trust deficit – Washington Times
Asia Should Call Truce on Currency War – Bloomberg
Joseph Stiglitz: “Deep-seatedly wrong” economic thinking is killing Greece – INET
German Business Confidence Rises With China Fears Subdued – Bloomberg
Will the Stock Market Correction Hurt Housing? – Forbes
Rethinking Mortgage Design – Liberty Street Economics
Trigger-Happy Central Bankers Reversed Course – Bloomberg
Rate Hike Fever – Krugman, NY Times

 

Panic on the Street

It looks like they’ll have plenty to talk about this week beyond the official topic of  Inflation Dynamics and Monetary Policy at the Federal Reserve’s annual gathering of the brain trust in Jackson Hole, WY, what with the sky being full of smoke from physical fires burning to the West and financial markets around the world figuratively going up in smoke.

What’s interesting about recent developments (if not surprising) is that China’s disappointing economy is being blamed for the market turmoil, prime evidence being the graphic below in this Wall Street Journal story today:

What gets short shrift from most media outlets (this Forbes piece by Steve Keen being the exception to the rule) is that we may be looking square in the face of yet another ugly unwind of yet another reckless expansion of credit and debt. Oh well…

Monday Morning Links

MUST READS
China shares tumble 8.5% – MarketWatch
China to Flood Economy With Cash – WSJ
Stock Rout Spreads To Europe After China Plunge – Bloomberg
China still has firepower to boost its economy – CNN/Money
The Method in the Market’s Current Madness – New Yorker
Oil Falls Below $40 a Barrel for First Time Since 2009 – Bloomberg
Soc Gen: Markets lose faith in central banks – Macro Business
Angry investors capture head of China metals exchange – CNBC
Trump: “Hedge Fund Guys Are Getting Away With Murder” – Slate
They’re gonna need a bigger balance sheet – Burning Platform
It’s Always Worse Than You Think – CBB
Risk Turns Risky – Hussman Funds

MARKETS/INVESTING
Chinese stock market plunge causes global rout – AP
The Mysterious Selloff – Alhambra Partners
What the Heck is Going on in the Global Markets? – Wolf Street
China Crash: You Can’t Keep Accelerating Forever – Forbes
10Y Slides Back Under 2%, What Goldman Said Could Not Happen – Zero Hedge
Commodity Gauge Slumps to Lowest Since ’99 as China Roils Market – Bloomberg
Gold just below multi-week highs on dollar weakness, equities rout – Reuters
“Gold and silver will be your only lifeboats” warns Jim Sinclair – GoldCore
Junior miners jump into medical marijuana amid slump – Bloomberg
Theory On China’s Gold Strategy – BullionStar

ECONOMY/WORLD/HOUSING/BANKING
The Gold Standard and Price Inflation – SF Fed
Is The US Economy Headed For Trouble? – Capital Spectator
China’s economic slowdown – Econbrowser
Back from the brink: Policy reform and debt relief in Greece – voxeu
Park Says South Korea Won’t Back Off as Crisis Hits Markets – Bloomberg
Welcome to London’s new luxury hotspot – Telegraph
The Housing Market And Economic Growth – Forbes
The Fed looks set to make a dangerous mistake – Larry Summers
6 reasons the FOMC is unlikely to move in September – Sober Look
Why Government Hates Cash – Mises

 
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