Sep 22, 2014
Manipulation Mondays with Andrew Hoffman:
1. Post Labor Day PM smash, and specifically (per the title of today's article, "Cartel Suicide") the insanity of pushing prices this far below the cost of production amidst record demand, plunging inventories, and more oversold conditions than even April 2013.
2. Last week's news stories
- FOMC statement, in which "nothing" was said (per my article title). In fact, far more dovish than even CNBC and Goldman expected - but Fed went all out to push rates back up towards the 2.6% line in sand, and attack PMs
- Scottish referendum - conclusions, potential ramifications
- ECB TLTRO first tranche, $100 billion of new, free bank loans
-"Surprise $80 billion Chinese QE announcement, second in six weeks
- Collapsing Chinese home price data, Japanese downward revision of economy by perma-bullish BOJ
-New global currency collapse, amidst "strong dollar" - hyperinflationary fears will be here soon, especially in Japan
3. Ali Baba, and advanced stage of U.S. equity bubble
-hedge funds not benefiting, as Calpers/Texas Teachers get rid of them as asset classes
-public not benefitting, as no one owns stocks
-record valuations, based on fraudulent accounting
-record leverage
-record low interest rates, with worst bond fundamentals EVER