Wells Fargo, Fifth Third Unveil Minimum Wages Hike, Bonus Payments After Tax Reform Passes

AT&T’s announcement that it would boost US capex by $1 billion and pay a $1,000 special bonus to 200,000 employees once Trump signs the Tax Cut bill into law (ideally before the holidays), has unleashed a veritable torrent of trickle down economics. And who would have thought that the “Fight for $15” movement would see some of America’s biggest banks as its latest members.

Shortly after the AT&T announcement, and just an hour after the passage of the Republican Tax Cuts and Jobs Act which cuts corporate taxes, in an attempt to be among the first to win the administration’s benevolence, Fifth Third Bancorp said that just like AT&T, it would pay more than 13,500 employees a bonus and raise the minimum wage of its workforce to $15 an hour. In total, approximately 75% of employees will receive a pay increase or bonus. Senior managers and top executives are excluded from the special payments.

Cincinnati-based Fifth Third, the fifteenth largest U.S. bank by asset size, said the tax cut allowed it to re-evaluate its employee pay and pass along some of the windfall. Nearly 3,000 workers will see hourly wages rise to $15. The $1,000 one-time bonus is expected to be paid by the end of this year, the bank said, assuming President Donald Trump signs the bill into law by Christmas.

“We want to invest in our most important asset – our people,” said Fifth Third President and CEO Greg Carmichael. “Our employees drive our reputation, our business and our success.”

 

Carmichael said the higher wage is an important step to help support individuals, their families and the communities in which we operate. Fifth Third has a history of investing in its 18,000 employees. Once the legislation is signed into law, nearly 3,000 hourly employees will see their pay increase to $15 an hour. The one-time $1,000 bonus is expected to be distributed by the end of the year, assuming the president signs the bill before Christmas. Senior managers and executive leadership are excluded from this compensation.

 

“It is good for our communities, employees and Fifth Third Bank,” Carmichael said.

At almost the exact same time, scandal-plagued Wells Fargo also said it would be boosting its minimum wage for employees to $15 an hour, to 11% from the current minimum wage of $13.50, which was prompted by the GOP tax plan. Warren Buffet’s favorite bank also said it would target $400 million in donations to community and nonprofit organizations next year, and also announced that beginning in 2019, it will target 2% of its after-tax profits for corporate philanthropy.

“We believe tax reform is good for our U.S. economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners,” said President and CEO Tim Sloan. “We look forward to identifying additional opportunities for Wells Fargo to invest, as we continue to execute our business strategies and provide long-term value to all our stakeholders. As the nation’s largest small business lender and residential mortgage provider, we understand our significant role in helping grow the economy.”

 

“We’re ensuring that Wells Fargo is a great place to work by offering market-competitive compensation, career development opportunities, and a broad array of benefits,” Sloan said. “In addition to today’s announcement, over the past year we have added four additional paid holidays per year; enhanced our parental, caregiving, and backup adult care paid leave programs; and announced plans to grant restricted stock awards to approximately 250,000 team members that will vest in two years subject to grant terms. These awards are generally equivalent to 50 shares of Wells Fargo stock for eligible full-time team members and 30 shares for eligible part-time team members.”

In light of the bad press the bank has received in recent years, Wells’ attempt to mollify the general population, and the administartion, was to be expected. Furthermore, the bank’s generosity is hardly a shock following Goldman’s Monday calculation that Wells Fargo stands to benefit the most from all US banks, with up to 18% in EPS upside as a result of its lowered income tax.

And while it is certain that Wells’ benefits from tax cuts will more than outweigh any compsenation increases or philanthropy, it is also assured that many more banks will follow in these two banks footsteps as US corporations scramble to demonstrate their generous conscience, and “civic duty”, by returning if only a fraction of tax cut benefits to their employees and community. And who knows, maybe this time trickle down will actually work.

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Why A Scathing Wall Street Is Furious At The Trump Tax Plan

Back in October 2016, the “millionaire, billionaire, private jet owners” of America’s elitist, liberal mega-cities (A.K.A. New York and San Francisco) celebrated the tax hikes that a Hillary Clinton presidency would have undoubtedly jammed down their throats proclaiming them to be a ‘patriotic duty’.  Unfortunately, now that Trump has given them exactly what they apparently wanted…an amazing opportunity to ‘spread their wealth around”…they’re suddenly feeling a lot less patriotic. 

Of course, as we’ve noted numerous times, while most people across the country and across the income spectrum will benefit from the Republican tax reform package, the folks who stand to lose are those living in high-tax states with expensive real estate as their SALT, mortgage interest and property tax deductions will suddenly be capped.  And, as Bloomberg points out today, that has a lot of Wall Street Traders in New York drowning their sorrows in expensive vodka and considering a move to Florida.

One trader, sipping a Bloody Mary on a morning flight to somewhere more tropical, said he’s going to stop registering as a Republican. En route, he sent more than a dozen text messages ripping the tax bill.

 

A pair of hedge fund managers said the tax bill is too tilted toward corporations, rather than individuals who should get more relief.

 

“My clients are hard-working young professionals on Wall Street. I don’t have a lot of good news for them,” said Douglas Boneparth, a financial adviser in lower Manhattan who counsels people throughout the industry. Most are coming to terms with it. “I don’t think anyone is going to be surprised by the economic reality.”

 

“This provides a clear incentive for financial advisers to go independent,” said Louis Diamond of Diamond Consultants. “We’re hearing from a lot of clients on this; it’s just another reason why it makes a ton of sense, economically, to become self-employed.”

 Wolf

Of course, as we pointed out recently (see: Here’s An Interactive Map Of Which Housing Markets Get Hit The Most By The GOP Tax Bill), tax reform will likely be a double-whammy for wealthy bankers in New York and tech titans in San Francisco as their fancy McMansions may also take a pricing hit.

But, not everyone is furious. Afterall, there are still some tax goodies for New Yorkers such as a higher threshold for the alternative minimum tax, and a drop in the top marginal rate to 37% from 39.6%. 

As an example, Mike Dean, a broker in New York for TP ICAP Plc, is keeping a positive attitude saying “It’s going to hurt, obviously” but he sees the higher taxes as tantamount to “making an investment in the future of the economy.”

Still others are considering a move to lower-taxed states like Florida and Texas which, as Todd Morgan, chairman of Bel Air Investment Advisors in Los Angeles notes, sounds like a great idea right to the point that you realize that actually entails uprooting your entire family and starting a whole new life in a different part of the country…something that generally doesn’t go over well with teenage kids…“If you’re already rich why would you move to another state and live a different life just to save some money on taxes?  What are you going to do with the money? Buy more clothes? Eat more food?”

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In Call With Saudi King, Trump Condemns Iran For Houthi Missile Attack

After the latest ballistic missile attack on Saudi Arabia by Yemeni Houthi rebel forces on Tuesday, President Trump and Saudi Arabia's King Salman agreed in a Wednesday phone call to take concrete action toward holding Iran accountable, which both countries have blamed for the attack. 

According to the state-run Saudi Press Agency (SPA), the US President condemned Houthi attempts to target Riyadh with advanced rockets which the American administration believes are being supplied by Iran, and further stated that the recent series of attacks were serious acts of aggression threatening civilian populated areas. The leaders agreed to "hold the Iranian regime accountable for its aggressive actions" which threatens the security and stability of the region, according to a summary of the call provided by the SPA. 


Screenshot from footage of Tuesday's launch out of Yemen, circulated by Houthi military media.

Dramatic video showing Tuesday's ballistic missile launch targeting the location where the Saudi king was scheduled to appear.

After Tuesday's launch, Houthi military media in Yemen said its forces had targeted Saudi Arabia’s al-Yamamah Court – the location where King Salman was due to give a national budget talk on the same day. Later reports in Yemeni media said a Burkan "Volcano" H-2 ballistic missile had targeted the royal palace in reaction to what the Houthi's call Saudi-U.S. aggression, and Saudi state-run Al Ikhbariya TV subsequently reported that a missile had been intercepted south of Riyadh, while photos purporting to show an aerial explosion were posted widely on Saudi social media. The same type of ballistic missile was used in a November 4th attack which came close to hitting Riyadh's international airport. 

During the phone call the two leaders are also reported to have discussed UN Security Council resolutions aimed at crippling Iran's ability to stoke tensions in the region through supplying proxies in Yemen and throughout the gulf. This comes after a bizarre press conference late last week held by US Ambassador to the UN Nikki Haley in which she displayed the remnants of the rocket from the earlier failed November attack, citing it as "undeniable evidence" the Iranians were behind the launch, though a United Nations report compiled by a panel of independent experts contradicts the claim. 


Targets of the two recent Houthi ballistic missile launches. Map source: IHS Markit via BBC

Ironically, though the UN experts found a missile part which had an Iranian company logo imprinted, they found the missile to have American components as well. According to previous bombshell report in Foreign Policy:

A U.N. panel of experts has reviewed missile fragments from the strike that show the missile resembles the Qiam-1, an Iranian-made Scud variant that lacks the tail fins typically found in Yemen’s previously known missile arsenal. The panel noted in a confidential report, which was obtained by Foreign Policy, that the missile also contained a tail component that bore the logo of an Iranian company targeted by U.S. and U.N. sanctions.

 

But the panel, which reported that the missile also contained an American-made component, concluded it “has no evidence as to the identity of the broker or supplier.” While the presence of Iranian missile parts has strengthened the circumstantial case for the regime’s role in the Yemen conflict, some of Haley’s counterparts on the U.N. Security Council aren’t yet willing to point the finger at Tehran.

The United States has consistently sided with Saudi Arabia in its claims that Iranian aggression and expansion are what's actually fueling the humanitarian crisis in Yemen, despite the fact that the Saudi-led coalition (of which the US military is a major part) has mounted a fierce aerial bombing campaign over Yemen since 2015. However, earlier this month Trump issued a rare condemnation of the long running Saudi blockade of Yemen's main ports, which is causing millions of civilians in the war-ravaged country to starve and go without medicine.

And perhaps not coincidentally, Tuesday's Houthi missile launch came exactly 1,000 days after Saudi Arabia initiated its military campaign in Yemen.

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Bring On The FUD: 2017 Was The Year Bitcoin Became Anti-Fragile

Authored by Jimmy Song via CoinDesk.com,

As bitcoin approaches $20,000, continuing to create new millionaires along the way, it's easy to deceive ourselves and think that we could all see this coming.

It's hard to remember now, but the mood entering 2017 was a far cry from the optimism that we see in the bitcoin community after something like a 20x price rise.

SegWit had not yet activated. The New York Agreement, UASF, bitcoin cash, let alone bitcoin gold, were not in existence. The community was very much struggling to figure out a way forward on its technical roadmap and many people were arguing about what to do and complaining about the toxic atmosphere. OK, maybe some things haven't changed, but still, the community at the beginning of the year was very different than where we are now.

In this review of 2017, I'll be focusing on what we learned about bitcoin, how we got to the euphoria that we have now and what this all means going forward.

Phase 1 – Uncertainty

The year began with a lot of uncertainty. Only about 30 percent of miners were signaling for SegWit, while Bitcoin Unlimited, a rival software program attracted 35 percent support. Nothing looked imminent regarding scaling. Many developers, users and businesses were getting frustrated at the lack of progress, and there were dire warnings about how a fork like Bitcoin Unlimited would completely ruin bitcoin.

Yet despite all that, bitcoin entered the year on an upswing. Bitcoin passed $1,000 for the first time since 2013, and there was a real sense that the bear market had turned the corner.

This would not be the first time that uncertainty and price rises would coincide in 2017, and indeed the two being correlated is a major learning for the community this year.

The uncertainty kicked into high gear as "extension blocks," UASF and NYA all made their way to the stage in the first half of the year. There was a cat-and-mouse game of different bitcoin factions making threats, some credible, some not, to get what they wanted. The first half of the year was a time of crazy new developments almost on a daily basis.

Would Bitcoin split? Could bitcoin possibly survive a hard fork? Are people going to be scared off from buying bitcoin?

Instead of a price decline, we saw during the Jan-June time frame that the price actually rose 3x despite the threats of forks and "agreements" made for the benefit of those who signed it.

We saw during this period that bitcoin was not like other assets. Uncertainty around a company typically depresses its price. Uncertainty around bitcoin seemed to increase it. What was happening? Why was uncertainty correlated to a higher price?

Phase 2 – Fear

The New York Agreement at the end of May and the subsequent 3 months leading up to August 1st were a time of a lot of fear in the bitcoin community. Many, including myself, were concerned that bitcoin would die from brand confusion, split communities and decreased network effect. Many saw the inevitable divorce between the "big blockers" and "small blockers" as a mortal blow waiting to be delivered.

There was some relief when the NYA managed to lock in Segwit on the network through BIP91. The community was soon blindsided by Bitcoin Cash, though, which announced its intentions to fork very soon after. August 1st would become the day that bitcoin would change forever.

Going into August 1st, many thought that a hard fork would be a terrible thing for bitcoin in general. There would be two different bitcoins, two different communities, a split network effect and many other things. Many were expecting price to adjust to those realities and crater to much lower levels. Instead, what we saw was the start of a bull run, the likes of which we haven't seen since 2013.

The price the day before the hard fork was around $2,700. The next week, bitcoin rose to $3,700 and bitcoin cash surprisingly had value that wasn't zero. What was going on? How did both forks end up greater than the sum before the fork? Such math seems self-evident now, but this was not the predicted outcome and most thought that forks would reduce the overall value, not gain.

Again, we saw during this period that bitcoin was not like other assets. Bitcoin gained from social/technical/economic disorder. In other words, bitcoin is anti-fragile.

Phase 3 – Confidence

Despite the relative peacefulness of the hard fork on August 1, there was another fork ahead that was sure to be more contentious – the Segwit2x hard fork scheduled for three months after Segwit activation. The community had learned a bit about hard forks by then and there was less consternation about the harm a split there would cause.

But, Segwit2x turned out to be a disaster and the backers of the agreement ended up abandoning the effort a week before its scheduled fork. The code that was to create the split didn't work, and it was obvious that the effort simply lacked the requisite development power to make it a success.

Why?

We discovered this year that developers give the bitcoin network technological anti-fragility. Every time there is a disordering event like the bitcoin cash hard fork, developers in the entire Bitcoin ecosystem are forced to deal with it. More software is written, more attack cases are handled, the software gets better. As a result, the entire bitcoin ecosystem, not just the part the developer is working on, gets better.

Bitcoin is technologically anti-fragile because the developers have the ability to react and strengthen the network anytime vulnerabilities are found.

We also discovered this year that HODLers give the bitcoin network economic anti-fragility. HODLers will hold through the fear and uncertainty. There is no panic selling with this group. They've been through a three-year bear market. It's not easy to shake their confidence in what bitcoin can do. The mainstream media can warn us about bubbles, the technologists can warn us about how it can't scale, even core developers can warn us about how we're doomed.

Holders. Don't. Care. They believe in bitcoin. They aren't shaken by a few warnings and rely on bitcoin as sound money.

Lastly, we discovered this year that the bitcoin community gives the bitcoin network social anti-fragility. The community will not bow to the interests of businesses. The community will punish people and businesses that it thinks are acting not in its interest. Many people and companies have been punished and have suffered as a result of the community's enforcement of what it thinks is good for bitcoin.

The adversarial network has developed a moral standard for what good behavior is and bad behavior is punished and prevented.

Conclusion

Bitcoin continues to grow and increase in price for a reason. 2017 was the year that people started to see real evidence that bitcoin is not something that can be stopped. Many other reviewers seem to be disappointed at how bitcoin didn't do X, Y or Z. I see the fact that it not just survived, but thrived as evidence that their pet feature or development isn't that important.

So what does this mean for 2018? We can expect more fear and uncertainty going forward. Certainly, the people HODLing now are probably pretty different in composition than earlier this year. Perhaps the community has fragilized a bit through all these noobs that haven't been through a bear market or a 70 percent correction.

What's certain is that bitcoin is unpredictable and bitcoin will grow in unexpected ways. I can only hope that as much fear and uncertainty await us in 2018.

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Resolved—15 Million Americans Would Be Better Off Without Welfare: New at Reason

Fifteen million able-bodied adults on government welfare would have a better chance at economic betterment if they were taken off welfare.

That was the provocative proposition debated at the most recent Soho Forum debate, held on December 11 at New York’s Subculture theater in the East Village. Sponsored by Reason and moderated by Gene Epstein, the Soho Forum is a monthly, Oxford-style debate series that explores issues of particular interest to libertarians.

At the December 11 event, the Foundation for Government Accountability’s Tarren Bragdon defended the proposition while Neera Tanden of the Center for American Progress opposed it. As an Oxford-style debate, the audience (including those watching via Reason‘s Facebook live stream) voted before and after the debate, with the winner being the person who moved more people to his or her side. It’s a lively conversation that features audience questions toward the end.

The next Soho Forum takes place on January 16 and features the proposition that “selfishness is a virtue.” Yaron Brook, the executive director of the Ayn Rand Institute, will defend selfishness and Gene Epstein will move from moderator to debater in opposing the resolution. Moderating the debate is Fox News’ chief legal analyst Judge Andrew Napolitano. Tickets for the event are $18 ($10 for students) and must be purchased in advance. To buy tickets, go here now.

Click here for full text, a transcript, and downloadable versions.

View this article.

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Parents Claim Outrage After Unannounced Ivanka Trump School Visit, NASA Chooses Next New Frontiers Finalists, ‘Combat Jack’ Dead: P.M. Links

  • President Trump suggested the United States could cut off foreign aid to any country that votes for a United Nations resolution calling on the U.S. to withdraw its recognition of Jerusalem as Israel’s capital.
  • Sen. Al Franken (D-Minn.) says he’s resigning on January 2.
  • Some parents in Connecticut say they’re outraged after Ivanka Trump made an unannounced visit to their children’s school.
  • A judge declared a mistrial in the case of rancher Cliven Bundy, accused of leading an anti-government standoff in Nevada in 2014.
  • A Virginia state legislative race previously decided by one vote has now been declared a tie; there will be a coin toss.
  • Prosecutors in Turkey are seeking a sentence of four years for Knicks player Enes Kanter for insulting the Turkish president.
  • LaVar Ball wants to start a basketball league for high school graduates, paying top prospects up to $10,000 a year, to serve as an alternative to the NCAA.
  • NASA has chosen two finalists for its next New Frontiers mission, a trip to a comet and one to Saturn’s moon Titan.
  • Reggie “Combat Jack” Osse is dead at 48.

Follow us on Facebook and Twitter, and don’t forget to sign up for Reason’s daily updates for more content

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America Preparing “Bloody Nose” Military Attack On North Korea: Telegraph

While North Korea managed to once again drop off the list of immediate geopolitical concerns having kept relative quiet in recent weeks, without any notable provocations or ICBM launches, this may be changing soon, because according to the Telegraph, America is drawing up plans for a “bloody nose” military attack on North Korea to stop its nuclear weapons program. The UK newspaper’s sources claim that the White House has “dramatically” stepped up preparation for a military solution in recent months amid fears diplomacy is not working. As a result, one option currently under consideration is destroying a launch site before it is used by the regime for a new missile test. Stockpiles of weapons could also be targeted.

The explanation for what would be an act of war, is amusing: “The hope is that military force would show Kim Jong-un that America is “serious” about stopping further nuclear development and trigger negotiations.” Well, yes: launching an offensive war does tend to confirm that one is indeed serious. The question is what will China, Russia and the rest of the all too serious world do in response.

“The Pentagon is trying to find options that would allow them to punch the North Koreans in the nose, get their attention and show that we’re serious”, said one former US security official briefed on policy.

Some further details:

Donald Trump’s decision to bomb a Syrian government airfield earlier this year to defend America’s “red line” on chemical weapons use is seen as a blueprint.  Details have emerged after this newspaper talked to around a dozen current and former officials in America and Britain about policy towards North Korea.

 

The conversations show that the Trump administration is more willing to consider military options to end the conflict than widely assumed. 

And while it will hardly come as a major surprise, the Telegraph notes that it can be revealed that senior British diplomats fear America has already begun a “step by step” military build-up in the region that could escalate.

Alastair Morgan, the UK ambassador to North Korea, visited Washington DC for behind-closed-doors talks about forcing the regime to the negotiating table last month.  The UK is also urging Southeast Asian and African countries to expel some North Korean diplomats amid fears they are secretly financing the regime.

Meanwhile, in a continuation of a previous US demand, the Trump administration wants North Korean ships to be stopped and searched amid fears they are being used to get round UN sanctions.

The urgency behind the plan, and the pressure to act comes from the drop in estimated time it will take for North Korea to develop a missile that could hit America with nuclear weapons.

Just a few years ago it was believed the regime was a decade away from that point, but now the figure has dropped to as little as 18 months – though estimates vary.  Senior figures in the Trump administration have made clear in public that it would be unacceptable for North Korea to reach that position.  While Mr Trump has always said a “military option” is on the table, the administration’s focus has been on building economic and diplomatic pressure. 

 

But Mr Kim’s refusal to negotiate has left senior White House figures disillusioned with diplomacy and increasingly considering military avenues.  One British source who recently attended a briefing with H.R. McMaster, Mr Trump’s national security adviser, and other officials left feeling alarmed. 

 

“The Americans said deterrence doesn’t work against North Korea and negotiation doesn’t work,” the source said. 

 

“Those who heard them left with the impression that military action is very much an option they were considering seriously.”

Kori Schake, a former director of defense strategy at the White House’s National Security Council who served under George W Bush, said military action is a real possibility. “The White House very strongly believes that either North Korea will agree to give up its nuclear weapons or we will launch a preventative attack to destroy them,” she said.  “I would put the odds of them actually carrying that out at three in 10. Other policy experts say it is four in ten.”

Still, war is not a guaranteed outcome. On one hand, British officials are continuing to urge their US counterparts to focus on diplomatic solutions and are looking to increase pressure on North Korea.

Separately, while the Trump administration is considering military options, the Telegraph concedes that “it is not a foregone conclusion that the US president will choose to go down that path.  There are major uncertainties about how Mr Kim would react if provoked and the regime already has missiles that could strike nearby countries including Japan and South Korea.

Ultimately, and as we have said since early in 2017, the decision to attack North Korea will ultimately come down to whether the generals in Trump’s circle of confidence can and will overpower the diplomats:

Experts also say there is a split in the US administration with Mr Trump and Mr McMaster more willing to consider military action than Rex Tillerson, the secretary of state, and Jim Mattis, the defence secretary. 

The good news is that – for now at least – Trump no longer needs a major foreign diversion, especially after his biggest political victory of the year, with the passage of the GOP Tax Cut, which tangentially, may have also bought Kim Jong-Un a few additional quarters reprieve.

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Mexican Man Officially Granted Disabled Status For Having Giant Penis

A man from northern Mexico has been granted official disabled status because of his 18.9 inch penis believed to be the largest in the world after it was elongated with the use of weights.

Roberto Esquivel Cabrera, 54, is now receiving government handouts for his massive schlong, and refuses to have a reduction because he hopes to work in the American porn industry.

‘I cannot wear a uniform like anybody in the companies and also I cannot get on my knees”

‘I cannot run fast and so the companies think badly of me. They say that they will call me, but they never do.

Roberto Cabrera

Despite his knee issues ruling out several sexual positions, Mr. Cabrera has been offered a job as a porn actor by the man behind YouPorn and the FakeTaxi series – suggesting Cabera could perhaps do more of a “comedy porn” than an erotic flick.

Doctors say most of Cabera’s penis is actually foreskin from extensive stretching with weights, and that his actual penis underneat is six or seven inches.

As a result, Guinness Book of Records refuses to recognize his penis as the world’s larges – leaving US porn actor Jonah Falcon with the current record of 9.5 inches flaccid and 13.5 inches when erect.

Medics have urged him to have a reduction so he will be able to function normally and have children, but he has refused.

He’d rather have a penis bigger than the rest of the people,’ Dr Jesus David Salazar Gonzalez said. –Daily Mail

Mr Cabera responded to haters, satating: “I am famous because I have the biggest penis in the world. I am happy with my penis, I know nobody has the size I have.”

Cabera also has a variety of penis-linked health problems, including frequent urinary tract infections and chafing, which he combats by keeping his penis wrapped. He also sleeps with his penis in its own special pillow.

When asked if his giant penis affects his sex life, Cabrera said: “Some people ask me if I put some condoms on it and the answer is: I cannot. I can never penetrate anyone because it is too thick.”

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Trump Tax Bill Sparks Worst 2 Days For Stocks & Bonds In 2017

But, but, but… it wasn't supposed to be priced in…

 

On the day Trannies and Small Caps managed gains…

 

Futures show stocks dumped again at the open, tried valiantly to bounce back… but failed…

 

Notably VIX crashed at the open 8.90…

 

FANG stocks were weak again today…

 

High-Tax firms outperformed Low-Tax…

 

Bank Stocks were weak again – giving up gains from earlier in the week…

 

As a reminder, yesterday was the worst day for stock and bond investors of 2017.. and today was almost as ugly…

 

Bonds were a bloodbath once again today… but we note once again that all the selling pressure occurred during the US session…

 

As the yield curve steepened dramatically… most since January 2009

So the yield curve is the steepest since the Nov FOMC Minutes, 30Y Yield are the highest since the Nov 1st FOMC meeting…

 

The Dollar Index dipped again today but remains somewhat rangebound over the last week…

 

Copper & Crude continue their bounce back…

 

WTI/RBOB rallied on the day after big crude draw (and smaller than expected gasoline build)…

 

Gold and Silver also gained – to their highest in 2 weeks…

 

The divergence between gold and bitcoin is closing fast…

 

Lots of chaotic moves in Cryto-space today.

Bitcoin and Bitcoin Cash were inversely traded as the Coinbase reopenening hit…

 

Bitcoin futures saw a few halts in the last 24 hours…

 

Ether outperformed Bitcoin on the day…

 

On the bright side, the outrageous premiuum in GBTC is starting to collapse…

 

Finally we note that Gold is now at its cheapest relative to oil since the start of the year, with an ounce buying under 22 barrels of WTI (vs 29 at the year's highs)…

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“Ho, Ho, Hodl – A Visit From Crypto-Claus”: A Blockchain Holiday Poem

From Cameron Crise, a former hedge fund trader and current macro commentator and strategist who writes for Bloomberg.


The holidays are a festive time of fun and fantastical fairy tales told to young people, which explain the windfall of riches bestowed upon them. As it’s become something of a tradition for me to close out the year with a poem for readers, counterparties, and friends, that holiday spirit sounds like an apt topic for this year’s effort, with apologies to Clement Clarke Moore…

’Twas the night before Christmas, and all through the house
Every person was trading, including my spouse;
The mining rigs hummed in the cellar with care,
In hopes that some new bitcoins soon would be there;

The children were buying tokens from their beds,
While visions of Porsche Turbos danced in their heads;
And Mama on her laptop, and I on PC
Searched for the next big buying opportunity

But then from my desk there arose such a clatter,
I answered the phone to see what was the matter.
I squinted to see by the light of the taper,
As a teenager walked me through his white paper.

When, what to my wondering eyes should appear
But a bearded millennial drinking craft beer
He pulled out his phone, checked his what-do-you-call-it
Where one keeps one’s tokens- his digital wallet.

More rapid than lightning, the rallies they came
And he whistled, and shouted, and called them by name:
“Now Bitcoin! Now Litecoin! Now Ether and Ripple!
If Monero can double, then you can all triple!

To the top of the chart! Break the resistance wall!
Now dash away! Dash away! Dash away all!”
And then with a wink, to my office he flew
While lugging a case and swigging his brew

As he prepped his ICO pitch to help me gain,
I confirmed a few transactions on the blockchain.
His slide deck was thick; his paper, full of detail
About how he’d attract bids from Asian retail.

His eyes–how they twinkled! So this was no hobby
He clearly knew how to pitch the Watanabes
When I asked if he’d come from the North he said “No.
The coin-mining rigs have all melted the snow.

I leave for the coast on my sleigh in an hour.
My wind-farm provides me with super-cheap power.”
What about the Fed? Do you see any trouble?
He laughed, “You know central banks can’t spot a bubble.

The worst they can do is say ’buyer beware.’
It’s like the Wild West… pretty much laissez-faire.”
Is there intrinsic value? I mean, what can I buy?
He looked at me sadly and let out a sigh.

Then shaking his head, tapped the side of his nose.
“You mean that you can’t see the Emperor’s new clothes?
You’re not a believer, I can feel in my loins.
C’mon! A chap once bought some pizza with coins.

You know that the ledger, it needs proof of work.
You’re not only a doubter, you’re some kind of jerk.
Your insistence on value is pretty quaint, Gramps.
Stick to trading stocks or maybe collect stamps.

My coin’s not for you, I’ve seen more than enough.”
Then he packed up his things and he left in a huff.
But I heard him exclaim as he left, sight unseen:
Happy holidays all, and good luck in ’18!  

via http://ift.tt/2DgKOrb Tyler Durden