Freedom Isn’t Free

Submitted by Simon Black via SovereignMan.com,

Years ago back in my days at the academy and in the military, I used to hear this phrase “freedom isn’t free” over and over again.

It was almost a sort of motto for a lot of military units– a self-motivating expression that freedom came at a price, and it was our solemn responsibility to pay that price.

It’s a true statement. Freedom is NOT free.

History shows that the path to liberty almost invariably involves conflict, whether it was the American Revolution, or Brown vs. the Board of Education.

And these conflicts often demand a very steep price from those who fight them.

Today we are in the midst of another great conflict. I’m not talking about hostilities in Syria or even the Global War on Terror.

This conflict is between the individual and the state.

Governments around the world have demonstrated that they are willing to trample on individual liberties with no thought to the larger implications.

They tell us what we can and cannot put in our bodies. They take our children away when they deem us unfit parents in their sole discretion.

They tell us to be afraid of men in caves… or angry teenagers in the desert… or bad people lurking in the night… and then use that fear as an excuse to dismantle the freedoms that previous generations paid such a steep price to achieve.

We’ve now found out that the US government has demanded that Apple, in the words of CEO Tim Cook, “build a backdoor to the iPhone.”

Cook’s letter to customers describes how the government wants to access data on the iPhone of the man who perpetrated the 2015 San Bernadino mass shooting.

Apple’s iPhone operating system automatically encrypts data and only makes it available to a user who knows the password.

Since Apple doesn’t know the shooter’s password, they cannot access the data through normal means.

That’s why the FBI wants them to build a backdoor, and the government has commanded Apple to comply under the authority of a law dating back to 1789.

As Tim Cook points out,

“[W]hile the government may argue that its use would be limited to this case, there is no way to guarantee such control.

 

“The implications of the government’s demands are chilling. If the government can use the All Writs Act to make it easier to unlock your iPhone, it would have the power to reach into anyone’s device to capture their data.

 

“The government could extend this breach of privacy and demand that Apple build surveillance software to intercept your messages, access your health records or financial data, track your location, or even access your phone’s microphone or camera without your knowledge.”

The government may very well be acting in the interest of ‘protecting the American people’.

And US presidents often point out these days that their #1 responsibility is to keep American safe.

Actually, it’s not.

Nearly all federal officials, including the President, take an oath to support and defend the Constitution of the United States against ALL enemies, foreign and domestic.

That is their #1 responsibility– to uphold the principles of freedom that define an entire nation.

They have routinely broken that oath, trading other people’s freedom for the illusion of greater security.

It’s easy to sing songs about how free you are… to cheer Lady Gaga’s rendition of the national anthem at the Superbowl when she hits the high note on the word “free”.

But none of that comes at a price.

Our price is making a difficult choice between liberty and security– to choose fear or freedom.

When we feel that our families’ security is threatened, the knee-jerk reaction is often to say “give the government whatever it needs to make us safe!”

But the harsh reality is that such short-term thinking creates a much more ominous world in the long-term.

And every tacit acquiescence to intrusive government authority is a brick laid on the road to tyranny.


via Zero Hedge http://ift.tt/1oQvedN Tyler Durden

Why Donald Trump and Hillary Clinton Are the Equivalent of “Sick Building Syndrome”

Former political consultant and current ABC News analyst Matthew Dowd writes that the two leading candidates in the GOP and Democratic primaries are awful—and setting up a major transformation in partisan politics.

Is what Donald Trump says and how he acts where the vast majority of our country wants to go? Of course not. He is a bully, and appeals to some of the worst instincts of America.

But he has highlighted and is accelerating the disruption our politics so badly needs. Should he be president of the United States? I certainly hope not, but if his emergence helps destroy the sick building so many of us try to enter, then he has served a valuable purpose.

Is turning to Hillary and the status quo where the country wants to go? I don’t think so because the majority of American’s distrust and dislike her and she would be one of the most polarizing people ever elected, if she were to win. But she has served a laudable purpose in helping give rise to incredible disruption on the Democratic side of the aisle.

Dowd likens the current situation with the major parties to “sick building syndrome.” That is, each party is a toxic environment that can’t be salvaged or rehabbed, only destroyed:

The structure and the building of our politics are sick. You can be a very healthy person and if you walk into a house that is mold-ridden with no circulation and has lead pipes, you are going to get sick. The question becomes how sick do you get.

Good and healthy people can’t go in a sick building and hope to paint the walls and think the building is better. It needs to be torn down. Good, well-intentioned people will become ill entering into the status quo of our political system, and it is time we admit that….

It is just time we quit thinking we can fix the problem from within the current party structure. It may take some time, and will take much effort and creativity, but we, as a nation, are worth it.

Read the whole thing here.

Dowd is short on specifics in his op-ed. Part of that is because of the short length of the format but part of it is what he openly admits: He doesn’t have set answers. But as the co-author (with Matt Welch) of a book called The Declaration of Independents, I heartily agree with Dowd that the Democratic and Republican Parties, in their current configurations, are salvageable. They have painted themselves into bizarre ideological corners where each is at or near historic lows in terms of voter identification and each looks likely to nominate a presidential candidate who is genuinely unappealing to most Americans (and that’s whether it’s Trump or Cruz for the GOP, or Clinton or Sanders for the Dems).

Call it epistemic closure or echo-chamber syndrome or whatever you want, but the major parties have rigged their games so perfectly that they speak only to smaller and smaller groups of hard-core zealots who are further and further removed from what any of us actually give a shit about. Hence, Republicans are constantly harping on illegal immigrants (who are actually leaving the country due to our lackluster economy) and the $500 million in federal funding for Planned Parenthood (money that can’t be spent on abortion-related services) and the Democrats can’t stop yapping about income inequality and, well, Planned Parenthood. Neither party seems capable or willing to talk about actually putting forth agendas that might allow the economy to restart itself in a big way, or how to fix entitlement spending, or have a serious conversation about foreign policy.

As Dowd points out, Trump and Clinton represent not the start of anything new or exciting in politics. They are instead the pothole-ridden cul de sac of the the past 15 years or more of instensely partisan and genuinely awful governing.

The challenge for libertarians—who bear no responsibility for the debacles of either the Bush or Obama years—is how to take advantage of our surging popularity (see Gallup on this!) among voters and parlay into party platforms that promise less but deliver results effectively, and in a way that increases not just economic growth but cultural and social freedom. Which is of course is what this website is all about.

from Hit & Run http://ift.tt/1Okp75U
via IFTTT

Here Are The States With The Highest Household Debt Burdens

Americans are in debt. And massively so.

In fact, the US is laboring under $1.1 trillion in auto loan debt and $1.3 trillion in student loan obligations. 

This massive burden may well be holding back the beleaguered consumer in the US, a country which depends on consumer spending for three quarters of economic growth. 

According to the New York Fed, total indebtedness is now $12.12 trillion and while mortgage debt accounts for the lion’s share of the burden, student debt is on the rise, as are auto loan obligations. 

“How much does the average household owe?,” Bloomberg asks. “Nationwide, the per-capita debt is about $46,170.”

Most of that is mortgage debt, although in Texas, where the jobs market has been hit especially hard by the sharp decline in crude prices, auto loan debt has spiked of late.

In California, total debt amounts to around $66,000 per capita.

If you live in one of the states mentioned above and are struggling under a $60,000 debt burden, just remember: you can always refi via a P2P website. Oh… wait…


via Zero Hedge http://ift.tt/1PLXxTr Tyler Durden

Cable Rallies After EU President Confirms EU-UK Deal Done

Unless Cameron heard what he wanted to hear, as we detailed earlier, he would not have campaigned for the UK to remain in the bloc ahead of an expected referendum on membership in June…. which would likely have rocked the EU once again. Well after 30 minutes of chaos after the bell tonight, EU President Donald Tusk has tweeted that "Deal. Unanimous support for new settlement." GBPUSD is rallying on the news but now comes the fun part where Cameron persuades an increasingly euroskeptic Britain to stay inside Brussels shell…

Deal it is… No details yet…

 

And cable rallies…

 

This is far from over of course, and as we detailed earlier, here's a bit of color from Bloomberg on what "Brexit" would mean for London's "City": 

  • What is at stake? Financial services account for 180 billion pounds ($258 billion) a year — about 12 percent — of U.K. economic output and contribute 66 billion pounds in taxes. In some areas, like foreign exchange trading (41 percent of the world total) and over-the counter derivatives (49 percent), London is the undisputed global leader. Opponents of a Brexit fear a departure would precipitate years of uncertainty and steady waning of influence and market share.
  • What is passporting and why does it matter? Under the current regime, any firm authorized in the U.K. firm is free to do business in any other European Economic Area state by applying for a "passport" from British regulators. For non-EU banks like JPMorgan Chase & Co., Credit Suisse Group AG or Nomura Holdings Inc., the ability to access the region’s 500 million customers from a base in London has been an important draw. Without it, many firms may seriously consider upping sticks.
  • What would Brexit mean for the banks? Every day more than a trillion dollars worth of euros change hands in London, close to half the global total, according to the Bank for International Settlements. The City’s global dominance of the foreign-exchange market is likely to be tested by any Brexit package that fails to guarantee a continuation of access to the single market. Over-the-counter derivatives are another area for concern. About three-quarters of all trading in such instruments in Europe currently takes place in the British capital. Without access to the single market, much of that is likely to migrate, according to lawyers and bankers who say that U.S. banks are already mulling moving operations.

Right. So this isn't just symbolic. "While no FTSE 100 company said it wanted Britain to leave the EU, only 18 were prepared to state unequivocally that they supported continued membership," FT goes on to note.

Right. Because in reality, there aren't very many solid arguments for supporting continued memebership and whatever arguments were left have been significantly diminished by the bloc's worsening migrant crisis. Still, Cameron is calling for a "live and let live approach." Here's a look at UK trade vis-a-vis the rest of Europe. 

But numbers aren't likely to sway the British people who are prepared to opt out of the ill-fated union. 

Cameron says he's "battling for Britain", but in reality he's "battling for the EU." With the future of the union already in question thanks to the festering migrant crisis, Britain may well be better off abandoning this sinking ship. "It's the EU in question, not just one country in the EU," French President Francois Hollande said on Friday.

Indeed. And the time has now come for Britain to decide whether it's prepared to go down with this ship, or forge a path ahead on its own. In the meantime, expect volatility, PIMCO says. "Irrespective of the twists and turns in the debate over U.K.’s planned referendum on EU membership, uncertainty over the result is likely to weigh on U.K. markets for a good few months yet," Mike Amey, Pimco portfolio manager said in a press release. Right. it is likely to cast a pall on markets "for a good few months yet," as you can tell from the below: 


via Zero Hedge http://ift.tt/1RcOCuv Tyler Durden

Weekend Reading: The Bull Is Back?

Submitted by Lance Roberts via RealInvestmentAdvice.com,

That didn’t take much. After a three-day rally, the media is back into “bullish” mode suggesting the bottom is likely in and by the end of this year, it’s all going to be just fine.

Unfortunately, history suggests that after such a long unabated expansion risks are substantially higher than it has been previously. Furthermore, as I have repeated often in these missives, in an economy that is driven primarily based on consumption, and such consumption is already weak, it doesn’t take much to “flip the switch.” 

Believe it or not, this was a point make by former bull Joseph LaVorgna, Chief Economist for Deutsche Bank, now turned…da..da..dum…“bear.”  (Lord help us, hell hath frozen over.)

This week’s reading list in a continuation of thoughts on the current state of the financial markets, economy and the Fed. Is the recent correction now over setting the stage for the bull to begin its next charge? Or, is the recent rally just a trap drawing unwitting investors into the next sell off? No one knows for sure, but what you decide next could have potentially serious ramifications.


1) Bearish Sentiment A Cocktail For Rallies by Doug Kass via Real Clear Markets

“As I noted both four weeks ago and again late last week, numerous precedents and positive technical divergences have led to our current sharp rally, including the fact that:

 

Despite the S&P 500 and Dow Jones Industrial Average recently hitting fresh lows, only about 50% as many New York Stock Exchange-listed companies hit new 52-week lows this month as did so in January.

 

The percentage of stocks trading above their 50- and 200-day moving averages was higher at the recent low than it was at the market’s January low.

 

The McClellan Oscillator and Summation Index recently held at higher oversold levels.

 

Conversely, the market’s recent leaders have gone on the defensive and become laggards. But as I’ve previously pointed out, leadership changes often accompany a weak overall market — so we have to stay alert.”

But Also Read: The Curious Case Of Surging Transports by Mark Hulbert via MarketWatch

But Read: Bert Dohmen Is Uber-Bearish by Financial Sense

2)  Odds Of A Recession At 33% By Next Year by Larry Summers via The Washington Post

“I would put the odds of a U.S. recession at about 1/3 over the next year and at over ½ over the next 2 years.   There is a substantial chance that widening credit spreads, a strengthening dollar as Europe and Japan plunge more deeply into the world of negative rates, and lower inflation expectations will be tightening financial conditions even as recession looms.  And while there is certainly scope for quantitative easing, for forward guidance and possibly for negative rates, it is very unlikely that the Federal Reserve can take steps that are nearly the functional equivalent of 400 basis point cut in Fed funds that is normally necessary to respond to an incipient recession.”

But Also Read: The 4-Horseman Of The Economy Are Here by Constantin Gurdgiev via True Economics

3) Kyle Bass: A Ticking Bomb In China by Julia La Roche via Business Insider

“China’s banking system has grown from under $3 trillion to over $34.5 trillion in assets over the last 10 years alone. No credit system in history has ever attempted this rate of growth. There is no precedent.

 

What does this mean for Chinese banks? There is a bad answer and a worse answer. The bad answer is that Chinese bank capital – the equity buffer – is significantly overstated. A TBR requires much less capital to be set aside (only 2.5c as opposed to 11c for an on-balance sheet loan) at the time of origination (anyone thinking Fannie and Freddie?). Adjusting reported bank capital ratios for this effect changes reasonable 8-9% Core Tier 1 capital ratios (CT1) to undercapitalized 5-6% levels.

 

Now, the worse news. TBRs are one of the biggest ticking time bombs in the Chinese banking system because they have been used to hide loan losses.

China-Bank-Loans-021816

Also Read: The China Delusion by Rob Johnson via Project Syndicate

4) Central Banks & The Ongoing Dispute

 

5) It’s August 2008 All Over Again by Ken Goldberg via The Street

“The stock market’s path for the next month or two is likely to take its toll on both bulls and bears. This is because of how the market tends to “frack” its way through major peaks and troughs, as some indices peak earlier than others, while others tend to trough earlier than others. If you know which index is leading the others, the solution is simple. Once the leader shows its hand, take the appropriate action in the followers and wait for them to catch up, as the profits should be close behind, right? Maybe. Unless humans are involved. We tend to use coping mechanisms that limit our ability to see what the markets are showing us. That historically results in situations where the herd becomes bullish at major tops and bearish at major bottoms.”

russell-3k-monthly-bars

But Also Read: An Unambiguous Buy Signal by Jeff Cox via CNBC

And Read: Bear Market Rallies by Urban Camel via Financial Sense


THE USUAL SUSPECTS


“Investors are condemned by almost mathematical law to lose” – Ben Graham


via Zero Hedge http://ift.tt/1KvYHmZ Tyler Durden

Death of the Anti-War Candidate

I have a student in one of my classes who told me the other day he had to finish the semester early because he was being deployed to Afghanistan for a second time. The class is about the history of American journalism, so the final lectures cover the media’s role in pushing wars like the Iraq War, the war in Afghanistan, and even the war on drugs. I hope I get to cover that with him before he leaves.

The war to which the student is being sent ended in 2014, according to President Obama, who said the Afghanistan effort was over even though he had left 10,000 U.S. troops there. The withdrawal of those troops has been postponed a number of times, often at the behest of the weak Afghan government.

In 2008, Barack Obama campaigned on the idea that he would end the unpopular Iraq War and focus on prosecuting the war in Afghanistan, which he argued President Bush had ignored by starting a second war in Iraq. Today, the Obama administration has been engaged in the war in Afghanistan longer than the Bush administration prosecuted the Iraq War. There are few pronouncements anymore explaining why the U.S. is in Afghanistan, other than to train Afghan troops and support counterterrorism operations, the mission for many years now.

Obama launched his presidential campaign as one of the few candidates who had opposed the Iraq war from the beginning (he was a state senator representing Hyde Park in Chicago in 2003). The introduction of positions on the war in Afghanistan complicated the anti-war narrative, but did not dispel all his supporters of it, as Obama apologists argued when President Obama’s Afghanistan surge was being announced.

Of course there were authentically anti-war candidates in 2008, on the Democratic and Republican side. The most successful of them was Texas Rep. Ron Paul (R), who also ran in 2012, winning six state primaries. The anti-war candidates on the 2008 Democratic side, like Ohio Rep. Dennis Kucinich and former Alaska Sen. Mike Gravel, were relegated to the fringes quickly.

Paul’s position on non-intervention and war was unique among Republicans, whose foreign policy platform was captured in the 2000s entirely by philosophies of interventionism. In a 2007 debate, Ron Paul reminded his fellow candidates that George W. Bush ran in 2000 on a platform of “no nation building” and “no policing of the world.” There’s an even longer tradition of anti-war and non-interventionist sentiments on the right. Yet by the 2008 election, supporters of interventionism argued that “9/11 changed everything.”

Eight years later, the stalking horse of interventionists is the Islamic State in Iraq and Syria (ISIS), a terrorist group that metastasized out of terror groups like Al-Qaeda that were able to operate in the region in large part because of the instability and power vacuums the Iraq War created. Kentucky Sen. Rand Paul, Ron Paul’s son, brought up this important critique in the 2016 election cycle, but dropped out after a poor showing in Iowa. Of the remaining candidates, the one who suggested he’d like to find out whether sand glowed by carpet bombing Iraq is trying to sell himself as least interventionist to non-interventionists.

Paul’s critique—the acknowledgement that interventionist U.S. foreign policy contributed to the rise of ISIS—is lost to most of the remaining Republican field because it includes an indictment of the policies of a Republican president.

Democrats aren’t as shy, and also have no shame. While Hillary Clinton and Bernie Sanders have blamed the rise of ISIS on Bush policies, ISIS now operates in Libya as well, a country in chaos, one long crime against humanity. Libya was destabilized by a U.S.-led intervention under President Obama—one championed by Hillary Clinton, then the secretary of state, and which did not receive any kind of Congressional authorization in advance. Hillary Clinton has faced little criticism for her role in what’s happening in Libya today.

Bernie Sanders continues to use his no vote on the Iraq war, now 14-years-old, as an indicator of his foreign policy. Yet at debates he often finds himself agreeing with Clinton on foreign policy. In the last Democratic debate, Sanders engaged the idea of the unintended consequences of Clinton’s interventionist policies more directly than he ever had before. He talked about the 1953 overthrow of Iranian Prime Minister Mohammed Mossadegh and how his replacement by the shah contributed to the 1979 Islamic revolution. He finally lambasted Clinton for boasting of her relationship with Henry Kissinger, who was Secretary of State under Richard Nixon and Gerald Ford and is a leading interventionist thinker in the foreign policy establishment.

Yet Sanders’ understanding of unintended consequences isn’t just limited to foreign policy (he never considers the unintended consequences of his economic proposals): it’s also limited within the foreign policy domain. At the same debate where he promised to “look very carefully about unintended consequences,” he endorsed the idea of taking a more aggressive stance vis a vis Russia and endorsed continuing U.S. involvement in the fight against ISIS.

At a previous debate, he called ISIS a “war for the soul of Islam,” supporting a campaign of Muslim troops on the ground supported by major powers including the U.S. That’s a position not far off from what many Republican candidates have said they support, although Republicans will usually refer to Arab troops, not Muslim troops. And Sanders’ formulation of the struggle against ISIS as having to do with “the soul of Islam” falls closer to the “call it radical Islam” rhetoric of Republican interventionists than the “ISIS isn’t Islamic” rhetoric of the Democratic interventionists.

Meanwhile, at the most recent Republican debate, in South Carolina, Donald Trump received among his loudest boos of the election cycle for pointing out that the terrorist attacks of September 11, 2001, happened under George W. Bush’s watch. Trump has repeatedly trumpeted comments he made in 2003 calling the Iraq War a mistake, and gave the equivalent of the “Bush lied, people died” argument about the war, pointing out that the Bush administration said there were weapons of mass destruction but that there were no WMDs found.

But Donald Trump is no anti-war politician. In a recently uncovered 2002 interview, Trump was found to have supported the Iraq War. “I wish the first time it was done correctly,” he told radio host Howard Stern back then. Trump doesn’t necessarily oppose wars, he just thinks he can do a better job prosecuting them.

Most importantly, the critiques of the Bush and Obama-Clinton policies are incomplete without each other—both have contributed to regional instability that is now used to justify even more intervention. And both are responsible for normalizing (or, if you’re a pessimist, maintaining the normality of) pro-war politics in America. Four years ago, Glenn Greenwald pointed to polls that showed deep support among Democrats for the use of drones to kill suspected terrorists, including U.S. citizens not given due process, and for keeping Guantanamo Bay open.

At the last Democratic debate in New Hampshire, Afghanistan got two mentions from the candidates. Sanders said it wouldn’t be possible to withdraw “tomorrow” and then pivoted to talking about Iraqi army gains over ISIS in that country. Clinton re-iterated Obama’s decision to keep troops longer at the request of the Afghan president, and argued any decision on withdrawal would have to consider how much the Afghan government “continues to need.” She even mentioned ISIS outposts in the country as a potential reason to stay longer.

There are no candidates left who can offer a substantive engagement of the effect of U.S. intervention on creating the conditions that are then used to justify even more intervention. It’s not an issue voters appear to care about—certainly not one they’ve appeared to press their candidates on. The occassional bromide that suggests some understanding of the role of interventionism in contributing to foreign policy problems from someone like Sanders or Trump is usually decontextualized and left unapplied to the kinds of decisions the remaining candidates might be asked to make in the future. Issues like U.S. support for the Saudi war in Yemen are almost completely absent from the debate.

The fate of former Sen. Jim Webb in the Democratic presidential race illustrates the damage done by the imposition of bipartisan support (rhetoric aside) for the actual workings of U.S. foreign policy. Webb was a critic of U.S. intervention in Iraq as well as Libya, and called for Congress to reclaim its role in decisions about war-making. He also happened to be an early proponent of criminal justice reform (in a way, the effort to limit the wars the U.S. wages on its own people). But at his only debate appearance, he defended the rights of poor and middle class people to defend themselves with guns, pointing to the hypocrisy of well-guarded elites pushing to abrogate the rights of everyday people. He eventually announced he was dropping out of the race, and the Democratic Party.

Democrats made a big deal out of issues of war and peace during the Bush administration, but the Obama administration has continued many of the same policies, and innovated new ones along the same ideological lines.

At that one Democratic debate with Jim Webb, the candidates were asked what enemy they were proudest of. Hillary Clinton mentioned Republicans. Webb mentioned an enemy soldier he had killed while serving in Vietnam. The crowd wasn’t amused. The line from Clinton indicating she considered her political opponents to be her greatest enemies got applause. A line that reminded the audience of what war on the ground actually means provoked discomfort.

Notably, Clinton, the candidate who laughed about the sodomy and killing of Col. Qaddafi at the tail end of the U.S. intervention in Libya. “We came, we saw, he died,” she joked, even as the Obama administration insisted officially that protecting the Libyan people, and not regime change, was the mission. It failed, and voters fail to care, content instead to accept any position coming from their partisan team because they’ve been convinced the other side is that much more awful, even as their foreign policy differences are increasingly only rhetorical.

from Hit & Run http://ift.tt/1PLUESG
via IFTTT

RIP: Harper Lee, DOJ Bosses Apple Around, Jeb Stumbles: P.M. Links

  • To Kill a Mockingbird author Harper Lee has died. Her recently-released follow-up novel, Go Set a Watchman, is controversial—in part because it’s not clear she actually wrote it.
  • The Department of Justice filed a motion to compel Apple to give the FBI what it wants.
  • Student activism is taking a mental and emotional toll on some of the activists.
  • Trump supporters: Do you still stand with him now that you know he orders the fish delight from McDonald’s?
  • Williams College overrode its students and prevented them from bringing a conservative speaker to college.
  • God, the Jeb Bush campaign is pitiful.

from Hit & Run http://ift.tt/1oQjFmE
via IFTTT

“It Just Occurred To Me” – Trump Proposes Boycott Of Apple, While Tweeting From An iPhone

Moments after AAPL announced on Wednesday that it would not comply with FBI demands to hack into its phone, Donald Trump was already arguing vehemently that Apple should help investigators crack the phone’s encryption system: “To think that Apple won’t allow us to get into her cell phone,” Trump said on Fox and Friends Wednesday morning. “Who do they think they are? No, we have to open it up.”

“Apple, this is one case, this is a case that certainly we should be able to get into the phone,” he said. “And we should find out what happened, why it happened, and maybe there’s other people involved and we have to do that.”

“I agree 100% with the courts,” the mogul added. “In that case, we should open it up. I think security over all — we have to open it up, and we have to use our heads. We have to use common sense.”

And then, moments ago during a campaign event in Pawleys Island, South Carolina, Trump had an epiphany: “It just occurred to me.” His solution: a boycott of Apple Inc products until the tech giant agrees to U.S. government demands that it unlock the cellphone of the San Bernardino killer.

“Boycott Apple until they give up the information,” Trump said. “The phone is owned by the government… Tim Cook is looking to do a big number probably to show how liberal he is. Apple should give up.”

The billionaire’s call to action followed an interview with Bloomberg in which he offered harsh words for Cook.

“Tim Cook is living in the world of the make believe,” Trump said Friday in a telephone interview. “I would come down so hard on him — you have no idea — his head would be spinning all of the way back to Silicon Valley.”

“I think Tim Cook is totally out of line and I think the government should come down on Tim Cook very, very hard,” Trump said in the interview Friday. “I think it’s a disgrace what he is doing, we’re talking about lives, potentially thousands of lives, and we should find out who else was involved in the plot where 14 people were killed.”

It was unclear initially it Trump had a specific cell phone company as an alternatives, or if this was all part of a grand marketing ploy by Tim Cook to get Trump’s opponents to rush out and purchase iPhones in retaliation. We will keep an eye on channels checks over the next few days for the answer.

But the biggest irony is shown is self-evident in the screengrab of Trump’s latest tweet below.


via Zero Hedge http://ift.tt/1LxDPXw Tyler Durden

Best Week Of 2016 For Stocks Amid Biggest Short-Squeeze In A Year

Come on… stocks are up large… everything must be awesome!!

 

This was S&P and Dow Transports best week of the year… (Dow Industrials best week in 3 months, Nasdaq and Small Caps best week in 4 months)

Today's moves were capped at the European close…

 

Trannies are up 5 weeks in a row – the same after The Oct 2014 Bullard Bounce…

 

Let's just look across assets this week:

  • US equities Up 2.5% to 3.5%
  • US Treasuries ~Unchanged
  • Oil ~Unchanged
  • Gold ~Unchanged
  • USDJPY -0.5%
  • IG Credit ~Unchanged

 

Homebuilders outperformed (despite weak Starts and Permits data, weak sentiment, weak mortgage applications and weak architecture billings), and Financials and Energy had their best week of the year…

 

But Credit markets did not play along with financial stocks…

 

The Wednesday panic spike in stocks appears to have been some kind of market-neutral liquidation as "Weak Momentum" stocks soared relative to "Strong Momentum" stocks…

 

And shorts were massively squeezed also… this was the biggest short-squeeze week since the first week of Feb 2015

 

And something very odd was going on in The VIX ETF complex…

 

Icahn Enterprises plunged after S&P shifted to negative watch, implying a junk rating looms…

 

Treasury yields see-sawed all week (shortened week), ending with 10Y practically unchanged and the short-end up 2-3bps…

 

USDJPY's tumble was the biggest news this week but EUR weakness helped USD Index rise 0.75% on the week…

 

Modest USD strength on the week left gold and silver lower. Copper and crude outperformed, after crude plunged to unch on the week early on today…

 

The crude futures roll today sparked panic-buying in the March contract into the close which ramped the cash-roll higher…

 

Notably Oil VIX plunged on the week (from over 80 to almost 60)…

 

 

Charts: Bloomberg


via Zero Hedge http://ift.tt/1XCtYqc Tyler Durden

Has The Market Crash Only Just Begun?

Having successfully called the market's retreat in the fall of 2015, Universa's Mark Spitznagel is not taking a victory lap as he warns Bloomberg TV that "the crash has only just begun."

Investors are facing the most binary "let's make a deal" market in history in Spitznagel's view: choose Door #1 to bet on Keynesianism, central planners, and monetary interventionism; or Door #2 to bet on free markets and natural price discovery.

"There is massive cognitive dissonance here," Spitznagel explains as history teaches us that door #2 is the right choice… but it's not possible to do that today as investors have been coerced to choose door #1, but when door #1 is slammed open "we will see that dreaded black swan monster."

That is what is going on right now:

"Investors want to go with The Fed when it's working – like David Zervos… the problem is, when do you know that it is not working?"

"At some point this stops working…"

 

"the market is going through a resolution process, transitioning from the cognitive dissonance of Door #1 to the harsh reality of Door #2… if everyone were to change doors at the same time, that is a market crash… it can't be done in a non-messy way."

Must watch reality check behind the smoke and mirrors we call markets… (we note Mark's excellent analogy starting at around 3:10)


via Zero Hedge http://ift.tt/1XCtY9P Tyler Durden