Record Dow, Nasdaq, S&P, Russell, Bitcoin And US Debt

Volumes – expectedly – were extremely light and so, we all know what that means: a dash for trash meltup. NASDAQ keeps powering ahead as the S&P and Dow recover from yesterday afternoon's cliff dive. Trannies now up 13.3% off the debt-ceiling lows 5 weeks ago… sure, why not. "Most shorted" names outperformed once again but it seems investors, while not wanting to sell, are happy to bid for protection as VIX diverges. Credit markets also diverged bearishly today. Stocks disconnected (a la yesterday) from JPY carry briefly but rapidly caught up in the low volume churn. Bonds leaked higher in yield (unch on the week now); the USD pushed higher after Europe's close (back to unch on the week); but inventories and USD strength weighed on oil prices and precious metals limped modestly lower.

 

NASDAQ is playing catch-up to the Trannies…

 

The "most shorted" names continue to push higher on momentum from yesterday's major squeeze after the attempt to sell on Monday…

 

Another day of divergence and convergence with JPY carry trades – this time sellers banged higher by the carry arbs…

 

VIX has been relatively well bid for the last week as managers appear loathe to sell but desirous of protection (VIX is notably rich relative to realized vol)…

 

Credit markets diverged notably on the day…

 

Oil slumped and commodities in general slid lower…

 

The USD rallied back to unch on the week led by notably JPY (and AUD) weakness…

 

 

Finally, putting everything into perspective, US Federal debt joined the party, obviously, and just printed at a fresh all time high of just over $17.2 trillion

 

Charts: Bloomberg

Bonus Charts: Give Thanks…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/jnuBtfQswww/story01.htm Tyler Durden

Record Dow, Nasdaq, S&P, Russell, Bitcoin And US Debt

Volumes – expectedly – were extremely light and so, we all know what that means: a dash for trash meltup. NASDAQ keeps powering ahead as the S&P and Dow recover from yesterday afternoon's cliff dive. Trannies now up 13.3% off the debt-ceiling lows 5 weeks ago… sure, why not. "Most shorted" names outperformed once again but it seems investors, while not wanting to sell, are happy to bid for protection as VIX diverges. Credit markets also diverged bearishly today. Stocks disconnected (a la yesterday) from JPY carry briefly but rapidly caught up in the low volume churn. Bonds leaked higher in yield (unch on the week now); the USD pushed higher after Europe's close (back to unch on the week); but inventories and USD strength weighed on oil prices and precious metals limped modestly lower.

 

NASDAQ is playing catch-up to the Trannies…

 

The "most shorted" names continue to push higher on momentum from yesterday's major squeeze after the attempt to sell on Monday…

 

Another day of divergence and convergence with JPY carry trades – this time sellers banged higher by the carry arbs…

 

VIX has been relatively well bid for the last week as managers appear loathe to sell but desirous of protection (VIX is notably rich relative to realized vol)…

 

Credit markets diverged notably on the day…

 

Oil slumped and commodities in general slid lower…

 

The USD rallied back to unch on the week led by notably JPY (and AUD) weakness…

 

 

Finally, putting everything into perspective, US Federal debt joined the party, obviously, and just printed at a fresh all time high of just over $17.2 trillion

 

Charts: Bloomberg

Bonus Charts: Give Thanks…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/jnuBtfQswww/story01.htm Tyler Durden

David Stockman Fears “Panic” When The “Lunatic” Fed “Loses Control”

“It’s only a question of time before the central banks lose control,” David Stockman warns a shocked CNBC anchor, “and a panic sets in when people realize that these values are massively overstated.”

The outspoken author of The Great Deformation rages “the Fed is exporting its lunatic policies worldwide,” as central banks around the world have followed the Fed’s lead, “for either good reasons of defending their own currency and their trade and their exchange rate, or because they’re replicating the Fed’s erroneous policies.”

If one cares to look, Stockman adds, “there are bubbles everywhere,” citing Russell 2000 valuations of 75x LTM earnings as an example, “that makes no sense. It’s up 43% in the last year, but earnings of the Russell 2000 companies have not increased at all.” This is dangerous, he strongly cautions, “I haven’t seen too many bubbles in history” that haven’t ended violently.


“I’m not drinking the Kool-Aid…”

“Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated everywhere.” 

 



    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/i7F8GkWCJU4/story01.htm Tyler Durden

David Stockman Fears "Panic" When The "Lunatic" Fed "Loses Control"

“It’s only a question of time before the central banks lose control,” David Stockman warns a shocked CNBC anchor, “and a panic sets in when people realize that these values are massively overstated.”

The outspoken author of The Great Deformation rages “the Fed is exporting its lunatic policies worldwide,” as central banks around the world have followed the Fed’s lead, “for either good reasons of defending their own currency and their trade and their exchange rate, or because they’re replicating the Fed’s erroneous policies.”

If one cares to look, Stockman adds, “there are bubbles everywhere,” citing Russell 2000 valuations of 75x LTM earnings as an example, “that makes no sense. It’s up 43% in the last year, but earnings of the Russell 2000 companies have not increased at all.” This is dangerous, he strongly cautions, “I haven’t seen too many bubbles in history” that haven’t ended violently.


“I’m not drinking the Kool-Aid…”

“Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated everywhere.” 

 



    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/i7F8GkWCJU4/story01.htm Tyler Durden

E-Cigarette Ban Proposed in Chicago

Chicago is on its way to becoming the first major
U.S. city to ban electronic cigarette use in public and to place
other regulations on the product.

In December, the city council will vote on a proposal to amend
and expand a current tobacco ordinance. Backed by Mayor Rahm
Emanuel and aldermen Will Burns and Ed Burke, this measure would
ban the sale of e-cigarettes to minors, require retailers to gain a
license to sell e-cigarette products, force them to sell these
products behind the counter, and – despite the fact that
e-cigarettes contain no tobacco – apply the same public
prohibitions to them as tobacco products. The Chicago
Sun-Times

explains
that this means “adults would be prohibited from that
smoking e-cigarettes in virtually all of indoor Chicago except
private homes and vehicles, hotel rooms designated for smoking and
at least 10 feet away from building entrances.” If it passes, the
ordinance will take effect in January 2014.

All of this, city officials assure, is aimed at protecting
children. Chicago Health Commissioner Dr. Bechara Choucair told the
Sun-Times that it’s not enough that “we’ve seen a decrease
[in youth smoking], then a plateau. We really need to break that
plateau.” Choucair hopes to stamp out youth use of both cigarettes
and e-cigarettes.

Erika Sward, vice president of the American Lung Association,

voiced
approval for Chicago’s planned ban, saying, “We don’t
want to have people now exposed to e-cigarette second-hand
emissions until we know more about them.”

But can government officials actually convince people to stop
smoking cigarettes while also preventing them from utilizing
alternatives? Reason‘s Jacob Sullum has extensively
covered e-cigarette issues and has noted
that e-cigarettes are
not a gateway
to tobacco use, rather, “because e-cigarettes
more closely simulate the experience of smoking than nicotine gum,
patches, or inhalers do, they may be more
effective
 in helping smokers quit.” Likewise, addressing
concerns about safety, he has
pointed out
that “the health hazards of vaping pale beside
those of smoking,” so the decrease in tobacco use that has
coincided with the
rise of e-cigarette use
in young people “might signal
successful harm reduction.”

Other cities considering e-cigarette restrictions include

New York City
,
Oklahoma City
, and
Beverly Hills
.

ReasonTV’s Tracy Oppenheimer addressed a number of e-cigarette
issues in the video below:

from Hit & Run http://reason.com/blog/2013/11/27/e-cigarettes-ban-proposed-in-chicago
via IFTTT

Greenspan #Timestamped – “Dow 16,000 Is Not A Bubble”

The maestro clarifies his ‘experienced’ perspective of spotting bubbles in the following quote from his interview with Bloomberg TV’s Al Hunt:

“This does not have the characteristics, as far as I’m concerned, of a stock market bubble,”

Of course, as we noted here, some would beg to differ; but perhaps what would be useful is for the former Fed head to explain what ‘characteristics’ do constitute a bubble…

 

Nope, no bubble here…

 

 

 

And here’s his explanation…

The stock price generally goes up about 7 percent a year for the long term,” Greenspan said. “It didn’t go anywhere since October 2007 and the result of that is we’re just now breaching that. We have had no growth in stock prices for years.”

But as we explained here, there is a reason the Fed can’t see the bubble (aside from not wanting to).


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/5nvIDYP2bjs/story01.htm Tyler Durden

Greenspan #Timestamped – "Dow 16,000 Is Not A Bubble"

The maestro clarifies his ‘experienced’ perspective of spotting bubbles in the following quote from his interview with Bloomberg TV’s Al Hunt:

“This does not have the characteristics, as far as I’m concerned, of a stock market bubble,”

Of course, as we noted here, some would beg to differ; but perhaps what would be useful is for the former Fed head to explain what ‘characteristics’ do constitute a bubble…

 

Nope, no bubble here…

 

 

 

And here’s his explanation…

The stock price generally goes up about 7 percent a year for the long term,” Greenspan said. “It didn’t go anywhere since October 2007 and the result of that is we’re just now breaching that. We have had no growth in stock prices for years.”

But as we explained here, there is a reason the Fed can’t see the bubble (aside from not wanting to).


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/5nvIDYP2bjs/story01.htm Tyler Durden

Japan Reacts to Fukushima Crisis By Banning Journalism

2 weeks after the Fukushima accident, we reported that the government responded to the nuclear accident by trying to raise acceptable radiation levels and pretending that radiation is good for us.

We noted earlier this month:

Japan will likely pass a new anti-whistleblowing law in an attempt to silence criticism of Tepco and the government:

Japanese Prime Minister Shinzo Abe’s government is planning a state secrets act that critics say could curtail public access to information on a wide range of issues, including tensions with China and the Fukushima nuclear crisis.

 

The new law would dramatically expand the definition of official secrets and journalists convicted under it could be jailed for up to five years.

In reality, reporters covering Fukushima have long been harassed and censored.

Unfortunately, this is coming to pass. As EneNews reports:

Associated Press, Nov. 26, 2013: Japan’s more powerful lower house of Parliament approved a state secrecy bill late Tuesday […] Critics say it might sway authorities to withhold more information about nuclear power plants […] The move is welcomed by the United States […] lawyer Hiroyasu Maki said the bill’s definition of secrets is so vague and broad that it could easily be expanded to include radiation data […] Journalists who obtain information “inappropriately” or “wrongfully” can get up to five years in prison, prompting criticism that it would make officials more secretive and intimidate the media. Attempted leaks or inappropriate reporting, complicity or solicitation are also considered illegal. […] Japan’s proposed law also designates the prime minister as a third-party overseer.

 

BBC, Nov. 26, 2013: Japan approves new state secrecy bill to combat leaks […] The bill now goes to the upper house, where it is also likely to be passed.

 

The Australian, Nov. 25, 2013: Japanese press baulks at push for ‘fascist’ secrecy laws […] Taro Yamamoto [an upper house lawmaker] said the law threatened to recreate a fascist state in Japan. “This secrecy law represents a coup d’etat by a particular group of politicians and bureaucrats,” he told a press conference in Tokyo. “I believe the secrecy bill will eventually lead to the repression of the average person. It will allow those in power to crack down on anyone who is criticising them – the path we are on is the recreation of a fascist state.” He said the withholding of radiation data after the Fukushima disaster showed the Japanese government was predisposed to hiding information from its citizens and this law would only make things worse. […] The Asahi Shimbun newspaper likened the law to “conspiracy” regulations in pre-war Japan and said it could be used to stymie access to facts on nuclear accidents […]

 

Foreign Correspondents’ Club of Japan president Lucy Birmingham: “We are alarmed by the text of the bill, as well as associated statements made by some ruling party lawmakers, relating to the potential targeting of journalists for prosecution and imprisonment.”

 

Activist Kazuyuki Tokune: “I may be arrested some day for my anti-nuclear activity […] But that doesn’t stop me.”

 

Lawrence Repeta, a law professor at Meiji University in Tokyo: “This is a severe threat on freedom to report in Japan […] It appears the Abe administration has decided that they can get a lot of what they want, which is to escape oversight, to decrease transparency in the government by passing a law that grants the government and officials broad authority to designate information as secret.”

 

U.S. Charge d’Affairs Kurt Tong: It’s a positive step that would make Japan a “more effective alliance partner.”

 

Prime Minister Shinzo Abe: “This law is designed to protect the safety of the people.”

 

See also: Japan Deputy Prime Minister talks about “learning from the Nazis” — Previously said to let elderly people “hurry up and die” (VIDEO)

Rather than addressing the problems head-on, the Japanese government is circling the wagons.

Unfortunately, the United States is no better. Specifically, the American government:

As we noted 6 months after Fukushima melted d
own:

American and Canadian authorities have virtually stopped monitoring airborne radiation, and are not testing fish for radiation. (Indeed, the EPA reacted to Fukushima by raising “acceptable” radiation levels.)

 

***

 

The failure of the American, Canadian and other governments to test for and share results is making it difficult to hold an open scientific debate about what is happening.

Earlier this year, the acting EPA director signed a revised version of the EPA’s Protective Action Guide for radiological incidents, which radically relaxing the safety guidelines agencies follow in the wake of a nuclear-reactor meltdown or other unexpected release of radiation.  EPA whistleblowers called it “a public health policy only Dr. Strangelove could embrace.”

As we noted right after Fukushima happened, this is standard operating procedure for government these days:

When the economy imploded in 2008, how did the government respond?

 

Did it crack down on fraud? Force bankrupt companies to admit that their speculative gambling with our money had failed? Rein in the funny business?

 

Of course not!

 

The government just helped cover up how bad things were, used claims of national security to keep everything in the dark, and changed basic rules and definitions to allow the game to continue. See this, this, this and this.

When BP – through criminal negligence – blew out the Deepwater Horizon oil well, the government helped cover it up (the cover up is ongoing).

 

The government also changed the testing standards for seafood to pretend that higher levels of toxic PAHs in our food was business-as-usual.

 

So now that Japan is suffering the worst nuclear accident since Chernobyl – if not of all time – is the government riding to the rescue to help fix the problem, or at least to provide accurate information to its citizens so they can make informed decisions?

 

Of course not!

 

The EPA is closing ranks with the nuclear power industry ….

 

Indeed, some government scientists and media shills are now “reexamining” old studies that show that radioactive substances like plutonium cause cancer to argue that they help prevent cancer.

 

It is not just bubbleheads like Ann Coulter saying this. Government scientists from the Pacific Northwest National Laboratories and pro-nuclear hacks like Lawrence Solomon are saying this. [Update.]

 

In other words, this is a concerted propaganda campaign to cover up the severity of a major nuclear accident by raising acceptable levels of radiation and saying that a little radiation is good for us.

Any time the results of bad government policy is revealed, the government just covers it up rather than changing the policy.

Bonus:

All-In-One-Chunk: How to Reduce Your Risk of Radiation from Fukushima


 
   



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/rVNXyfYw4-8/story01.htm George Washington

Whatever You Do, Don’t Short Stocks On These Three Days In December

Regular readers know that at the end of every month we look at the next month’s POMO schedule, and urgently advise against shorting stocks on POMO days. That in the New Normal POMO days are pretty much every single day, may have something to do with why the S&P is set for a +30% close in 2013. However, in December the Fed has something very special served up. In addition to the usual $45 billion in total monthly wealth effect injections (which happen to quietly end up directly in Singapore private wealth offshore accounts), in the next month, Ben Bernanke’s parting gift to the 0.1% will be not one… not two… but a whopping three days with double POMOs: December 3, December 9 and, drumroll, December 19, aka the day after the final 2-day FOMC meeting of 2013, when Kevin Henry and his peers will monetize up to a whopping $7.5 billion in one day!

Is it a harbinger that something bad may take place the day before? We doubt it: this is merely the Fed doing everything it can in its power to make sure Santa Claus appears right on schedule for the billionaires of the world just so their spending habits are not impaired.

We, however, are positive that anyone caught shorting stocks on pretty much any day in December, but especially those three, will certainly not feel the benefits of whatever wealth the middle class has left being funneled into the bank accounts of the uberwealthy, as Ben Bernanke’s reverse Robin Hood ramps on, alongside the Russell 2000.

Joking aside, something notable is that while the Fed is not monetizing anything between Christmas and New Year’s Day in 2013, it had no problems with injecting liquidity in the quiet week of 2012. One wonders what changed.

Source: Central Planning Politburo of New York


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Ev5Eq0b3sFA/story01.htm Tyler Durden

Whatever You Do, Don't Short Stocks On These Three Days In December

Regular readers know that at the end of every month we look at the next month’s POMO schedule, and urgently advise against shorting stocks on POMO days. That in the New Normal POMO days are pretty much every single day, may have something to do with why the S&P is set for a +30% close in 2013. However, in December the Fed has something very special served up. In addition to the usual $45 billion in total monthly wealth effect injections (which happen to quietly end up directly in Singapore private wealth offshore accounts), in the next month, Ben Bernanke’s parting gift to the 0.1% will be not one… not two… but a whopping three days with double POMOs: December 3, December 9 and, drumroll, December 19, aka the day after the final 2-day FOMC meeting of 2013, when Kevin Henry and his peers will monetize up to a whopping $7.5 billion in one day!

Is it a harbinger that something bad may take place the day before? We doubt it: this is merely the Fed doing everything it can in its power to make sure Santa Claus appears right on schedule for the billionaires of the world just so their spending habits are not impaired.

We, however, are positive that anyone caught shorting stocks on pretty much any day in December, but especially those three, will certainly not feel the benefits of whatever wealth the middle class has left being funneled into the bank accounts of the uberwealthy, as Ben Bernanke’s reverse Robin Hood ramps on, alongside the Russell 2000.

Joking aside, something notable is that while the Fed is not monetizing anything between Christmas and New Year’s Day in 2013, it had no problems with injecting liquidity in the quiet week of 2012. One wonders what changed.

Source: Central Planning Politburo of New York


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Ev5Eq0b3sFA/story01.htm Tyler Durden