The Mess That Greenspan Made - Part 40

Monday Morning Links

MUST READS
Oil falls 3 percent on swelling oversupply – Reuters
Relax. We are not heading for a global meltdown – CNN/Money
US junk-rated energy debt hits two-decade low – Financial Times
This is Why Junk Bonds Will Sink Stocks: Moody’s – Wolf Street
The Case for the World Economy’s Defense  as Stocks Swoon – Bloomberg
Desperate in Davos: Policymakers Struggle for Answers – NY Times
Here’s what we found tracking private air travel to Davos – Quartz
China Capital Outflows Rise to Estimated $1 Trillion in 2015 – Bloomberg
15 thoughts on Michael Bloomberg’s presidential aspirations – Vox
Bernie Sanders and the Liberal Imagination – The Atlantic
When Extreme Losses are Standard Outcomes – Hussman Funds
Draghi Ready to Fight – Credit Bubble Bulletin

MARKETS/INVESTING
Oil and stocks resume their slide – CNN/Money
What’s behind the global stock sell-off? – Washington Post
Is This A Bear Market? – Alhambra Investment Partners
Risk Management Lessons From A Drunk Welshman – Capitalist Exploits
The One Chart Which Explains “Why Markets Are All Falling Down” – Zero Hedge
China 10-Year Bonds Slump as Yuan Concern Curbs PBOC Easing Bets – Bloomberg
These signs will mark the bottom for the stock market – MarketWatch
Gold rises on lower dollar and global economy concerns – Reuters
Gold Is Back in Fashion After a $15 Trillion Global Selloff – Bloomberg
Gold could lose safe-haven bid as equities rebound – Mining.com

ECONOMY/WORLD/HOUSING/BANKING
Is the stock market signaling about recession? – Marketwatch
IMF Sees Venezuela Inflation Rocketing to 720 Percent in 2016 – Bloomberg
Russian GDP shrinks 3.7% as oil slump continues – MarketWatch
Puerto Rico power debt relief deal falls apart – CNBC
Failed Talks Raise Specter of Biggest Default in Puerto Rico Crisis – NY Times
Merkel’s party, sliding in polls, weighs German ‘border centres’ – Reuters
Chinese Billionaire Zhang Xin: ‘The Old Model Doesn’t Work Anymore’ – Spiegel
Americans buying bigger, pricier homes – MarketWatch
Yellen Losing Dollar Bet as its Rise Slows Growth and Inflation – Bloomberg
The Fed Passes the Buck: Blame Oil and China – Mises

 

Gallows Humor: 2016 Stock Market Edition

Philip van Doorn at Marketwatch has compiled a set of ten hilarious cartoons about the recent stock market swoon with the one below, understandably,  topping the list:

Sadly, this probably describes the experience of a lot of retail investors who, over the years, have paid too much attention to the day-to-day developments and suffered as a result.

Friday Morning Links

MUST READS
Crude prices soar above $31 a barrel – CNN/Money
Nikkei surges 6% on oil bounce, stimulus hopes – Reuters
Here’s how to know if oil prices have hit bottom – MarketWatch
The Market Is Flashing an Inflation Warning Sign. Should anyone care? – WSJ
Move Over, Bitcoin: China Wants to Issue Its Own Digital Currency – Diplomat
This Isn’t the First Time Astronomers Have ‘Found’ a Planet Nine – Wired
What the Liberal Attacks on Bernie Sanders Are Really About – Fiscal Times
It’s an Era of Angry Populism and No One Is Immune – Real Clear Politics
One Big Reason To Be Less Skeptical Of Trump – Five Thirty Eight
Major donor to GOP launches pro-Trump super PAC – Politico
It’s On! National Review Goes After Trump – Daily Caller
Against Trump – National Review

MARKETS/INVESTING
Stocks: 5 things to know before the open – CNN/Money
10 oil companies that will thrive as crude prices rebound – MarketWatch
Oil Is `Trade of the Year’ for Citigroup After Iran Export Surge – Bloomberg
JP Morgan says “Dip Buying Is Officially Dead” – Zero Hedge
Everyone’s Got a China Call as Markets Grapple With Who’s Right – Bloomberg
Rich people have nowhere to put their money. This is a serious problem. – The Week
How this stress-inducing market hands you an opportunity — really – MarketWatch
U.S. Is Hiding Treasury Bond Data That’s Suddenly Become Crucial – Bloomberg
Gold retreats as equities rally, oil bounces 5 pct – Reuters
Markets No Longer Expect March Rate Hike; Supportive For Gold – Kitco
The Periodic Table of Commodity Returns – Visual Capitalist

ECONOMY/WORLD/HOUSING/BANKING
The dead hand of austerity; left and right – mainly macro
Ideological divisions in economics undermine its value – Economist
This Time, Cheaper Oil Does Little for the U.S. Economy – NY Times
‘Made in China’ fights for new brand image – CNN/Money
China’s Working-Age Population Sees Biggest-Ever Decline – WSJ
Startup wants Indian women to think gold jewellery and jeans go together – Quartz
French Keyboard Gets a Makeover Because It’s Ruining the Language – Vice News
Draghi gives Janet Yellen an A+ for rate hike – CNN/Money
Economy Can’t Withstand 4 Fed Hikes In 2016 – Larry Summers
No more quantitative easing, please – The Hill

 

Ray Dalio on Downside Risks

Ray Dalio, head of Bridgewater Associates and their $155+ billion in assets under management, shares a few thoughts in Davos about the state of the global financial system and the Federal Reserve’s next move.

To wit:

…the risks are asymmetric on the downside, because asset prices are comparatively high at the same time there’s not an ability to ease. That asymmetric risk exists all around the world. So every country in the world needs an easier monetary policy … I think the next major move in Fed policy will be toward quantitative easing, not toward a tightening.

Thursday Morning Links

MUST READS
Are We Already in a Bear Market? – New Yorker
Can 2016 Be Salvaged For Investors? – Forbes
ECB set to take cautious stance as markets tumble – Reuters
Saudi Arabia moves to protect currency peg – MarketWatch
PBOC Injects Most Cash in Three Years in Open-Market Operations – Bloomberg
Stock rout demotes Twitter CEO Jack Dorsey from billionaire to millionaire – Guardian
Hillary Clinton’s biggest problem, explained in one Bernie Sanders endorsement – Vox
Clinton, Sanders, Trump: Why are politicians so ignorant about economics? – Fox News
Calling in Kallstadt: A Visit to Donald Trump’s Ancestral Home – Spiegel
Non-Republicans power Kasich surge in New Hampshire – Politico
Cruz Has a Point About Big City Values – Bloomberg
Palin’s endorsement seals the deal for Trump – The Hill
The Whole GOP Goes Rogue – Washington Post

MARKETS/INVESTING
Stocks: 6 things to know before the open – CNN/Money
Stock market rally peters out amid continued turmoil – Guardian
Looking for signs of stocks’ final washout as fear, panic spike – USA Today
This is the single best reason to buy U.S. stocks now – MarketWatch
Short Sellers Making an Even Bigger Killing Than You Think – Bloomberg
How to Make Sense of Plummeting Global Markets – NY Times
Gold retreats as equities recover some ground after rout – Reuters
Invest In Gold Now As Stock Market To Crash – Faber – GoldCore
Gold Back Above $1,100/oz, How Long Can The Safe-Haven Allure Last? – Kitco
A Foothold for Gold – Market Anthropoloty

ECONOMY/WORLD/HOUSING/BANKING
A Long Term Look at Inflation – Advisor Perspectives
A Cheaper Yuan Won’t Help China – Bloomberg
Brexit could send UK’s surging auto sector into reverse – Telegraph
Merkel’s Last Stand? Chancellor Running Out of Time on Refugee Issue – Spiegel
UK house prices ‘to keep rising over next five years’, says Rics – The Week
Red-Hot Property Markets Cool as Rich Investors Retrench – WSJ
Housing market firming up this year – The Hill
Crashing oil prices hit former Texas boomtowns – USA Today
Monetary policy: The dead hand of debt – Economist

 
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