The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Negative Interest Rates Set The Stage For The Next Crisis (Stephen Roach)
• Why Negative Interest Rates Spell Doom For Capitalism (Romano)
• Central Banking Is In Crisis. Can The World Economy Be Far Behind? (Economist)
• Bank of Japan Baffled by Negative Reaction to Negative-Rate Policy (WSJ)
• Nomura Sees Yen Falling More Than 10% on BOJ Negative Rates (BBG)
• Abenomics? How About Kurodanomics? (BBG)
• OECD Calls for Urgent Increase in Government Spending (WSJ)
• China Bears Say the Capital Outflow Is Just Beginning (BBG)
• Red Ink In China (Economist)
• Overproduction Swamps Smaller Chinese Cities, Revealing Depth of Crisis (WSJ)
• You Cannot Print Your Way to Prosperity (Ron Paul)
• The Real Economy Is Talking, but Treasuries Aren’t Listening (BBG)
• Number Of UK Homes Worth More Than £1 Million Set To ‘Triple By 2030’ (G.)
• 400,000 Americans In Jeopardy As Giant Pension Fund Plans 50% Benefit Cuts (ZH)
• The Political War on Cash (WSJ)
• Swiss MPs Want New 5,000-Franc Banknotes To ‘Save Privacy And Freedom’ (L.)
• The Stressed-Out Oil Industry Faces an Existential Crisis (BBG)
• Oil Gives Up Gains as Inventories Build (WSJ)
• Anglo American Cut to Junk for Third Time This Week (BBG)
• Wary On Turkey, EU Prepares For Refugee Crisis In Greece (Reuters)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

Negative Interest Rates A ‘Dangerous Experiment’, Warns Morgan Stanley (MW)
Negative Interest Rates Are A ‘Gigantic Fiscal Failure’ (AEP)
Japan’s Exports Drop Most Since 2009 as Sales to China Fall (BBG)
Japan Shelves Plan to Let Pension Fund Directly Invest in Stocks (WSJ)
China’s Banks May Be Getting Creative About Hiding Their Losses (BBG)
China Central Bank Takes Another Step To Guide Interest Rates Lower (BBG)
High Chance of China Hard Landing, Says Adviser to Japan’s Abe (BBG)
Why the Chinese Yuan Will Lose 30% of its Value (CHS)
China’s $600 Billion Subprime Crisis Is Already Here (BBG)
Not Even a Wave of Oil Bankruptcies Will Shrink Crude Production (WSJ)
Less Than 4% Of World Oil Supply In The Red At $35/b (Platts)
Venezuela Lifts Gasoline Price by 6,200% and Devalues Currency by 37% (BBG)
The Real Crisis is for Bank Bonds, Not Banks (WSJ)
Fed’s Kashkari: 25% Capital Requirement May Be Right for Banks (WSJ)
Banking Reform Is More Complex Than It Needs To Be (Chu)
Italy Would Veto Any Cap On Banks’ Government Debt Holding (Reuters)
German Central Bank Chief On Collision Course With Draghi Over QE (T.)
Russia Sues Ukraine in London High Court Over $3 Billion Default (BBG)
WikiLeaks Releases Classified Data On EU Military Op Against Refugee Flows (RT)
European States Deeply Divided On Refugee Crisis Ahead Of Summit (Guardian)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Banks’ Balance Sheets Are Poor Guides To Actual Risks And Uncertainties (FT)
• Banks Are Still The Weak Links In The Economic Chain (FT)
• The Eurozone Can’t Survive Another Banking Crisis (MW)
• I’m in Awe at Just How Fast Global Trade is Unraveling (WS)
• Tilting At Windmills: The Faustian Folly Of Quantitative Easing (Steve Keen)
• If Zero Interest Rates Fixed What’s Broken, We’d Be in Paradise (CHS)
• China Turns on Taps and Loosens Screws in Bid to Support Growth (BBG)
• China Debt Binge Spurs S&P Warning (BBG)
• China Loses Control of the Economic Story Line (WSJ)
• China’s Big Bet On Latin America Is Going Bust (CNN)
• Pimco’s $12 Billion Standoff Over Austria Bad Bank (BBG)
• Things Are Coming Unglued for Canadian Investors (WS)
• Calgary Housing Market Collapses As “Three-Alarm Blaze” Burns In Vancouver (ZH)
• What Are We Smelling? (Dmitry Orlov)
• Not a game (Papachelas)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Central Bankers ‘Don’t Have A Clue’ – Jim Rogers (CNN)
• There Is Worse To Come As QE Loses Its Impact (FT)
• Markets Putting Faith in QE4? (WSJ)
• BOJ Launches Negative Rates, Already Dubbed A Failure By Markets (Reuters)
• China’s Problems ‘Just Gargantuan’ (CNBC)
• China Created A Record Half A Trillion Dollars Of Debt In January (ZH)
• China’s Bad Loans Rise to Highest in a Decade (BBG)
• Chinese Premier Faults Regulators’ Handling of Stocks, Yuan Rout (BBG)
• China Favors Flexibility in Managing Yuan (WSJ)
• Capital Flight Signals Investors Still Bracing For China To Devalue Yuan (MW)
• A Massive Banking Crisis Is Brewing In Singapore, Says Zulauf (SBR)
• Keiser: Deutsche Bank ‘Technically Insolvent’, Running A ‘Ponzi Scheme’ (RT)
• The Never-Ending Story: Europe’s Banks Face a Frightening Future (BBG)
• Low Oil Prices Claim New Victim, an Offshore Driller From Texas (NY Times)
• Sellers Of Auckland Houses Want $100,000 More Than They Did Last Year (Stuff)
• Repricing Reality (Jim Kunstler)
• German Minister Asks For Half A Billion To Create Jobs For Refugees (EA)
• Greek Minister: Hungary Has Sent Nothing, Not Even A Blanket (EA)
• Unknown Dead Fill Lesbos Cemetery For Refugees Drowned At Sea (Reuters)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Japan’s Economy Shrinks 1.4% As Abenomics Is Blown Off Course (Guardian)
• China Imports Plunge -18.8% YoY In January, Exports Fall -11.2% (FT)
• Yuan Rises Most Since 2005 as PBOC Voices Support, Raises Fixing (BBG)
• PBoC Governor Zhou Breaks Long Silence (BBG)
• Chinese Start to Lose Confidence in Their Currency (NY Times)
• China Markets Brace for Wild Swings in Year of the Monkey (WSJ)
• Selloff Plus A Market Holiday Make China Stocks Look Even More Expensive (BBG)
• Hong Kong Land Price Plunges Nearly 70% in Government Tender (BBG)
• Pakistan Default Risk Surges as $50 Billion Debt Bill Coming Due (BBG)
• ECB In Talks With Italy Over Buying Bundles Of Bad Loans (Reuters)
• Italy’s Banking Crisis Spirals Elegantly out of Control (WS)
• Nuclear Fuel Storage in South Australia Seen as Economic Boon (BBG)
• Oil Resumes Drop as Iran Loads Europe Cargo (BBG)
• Condensate Vs Crude Oil: What’s Actually in Those Storage Tanks? (Westexas)
• Renewables: The Next Fracking? (JMG)

Is This Debt’s Last Rattle?

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth


Crowd outside Wall Street Stock Exchange on BlackThursday Oct 24 1929

What we see happening today is why we called our news overview the “Debt Rattle” 8 years ago. The last gasps of a broken system ravished by the very much cancer-like progress of debt. Yes, it took longer than it should have, and than we thought. But that’s pretty much irrelevant, unless you were trying to get rich off of the downfall of your own world. Always a noble goal.

There’s one reason for the delay only: central bank hubris. And now the entire shebang is falling to bits. That this would proceed in chaotic ways was always a given. People don’t know where to look first or last, neither central bankers nor investors nor anyone else.

It’s starting to feel like we have functioning markets again. Starting. Central bankers still seek to meddle where and when they can, but their role is largely done. It’s hard to pinpoint what exactly started it, but certainly after Kuroda’s negative rate ‘surprise’ fell as flat on its face as it did, and then fell straight through the floor and subsequently shot up through the midnight skies, a whole lot more ‘omnipotence credibility’ has disappeared.

Kuroda achieved the very opposite of what he wanted, the yen soared up instead of down -big!-, and that will reflect on Yellen, Draghi et al, because they all use the same playbook. And the latter so far still got a little bit of what they were shooting for, not the opposite. Still, one could also make a good case that it was Yellen’s rate hike that was the culprit. Or even Draghi’s ‘whatever it takes’. It doesn’t matter much anymore.

Though what should remain clear is that it was in their interference in markets to begin with, as extremely expensive as it has been extremely useless and dumb, that the real guilt resides. Or we could take it even a step further back and point to the credit bubbles blown in the west before 2008. Central banks could have let that one go, and allow it to run its natural course. Instead, they decided they should inflate their own balance sheets. What could go wrong? Continue reading

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

China’s Central Bank Says No Basis for Continued Yuan Decline (BBG)
Why Kuroda’s ‘Bazooka’ May Be Out of Ammunition (WSJ)
BoJ Deputy Says Japan Needs Bolder Measures To Unlock Growth (FT)
Swedish Central Bank Move Creates a Global Shudder (NY Times)
Bond Investors Looking Out for Stimulus Hint in Draghi Testimony (BBG)
There Are Still a Few Tricks Seen Up Central Bankers’ Sleeves
Former Dallas Fed President Calls Out Central Banks (CNBC)
Nomura Drops to Pre-Abenomics Level as Japan’s Brokers Slump (BBG)
Deutsche Bank Buyback Sparks Backlash From Newest Investors (BBG)
This is How Financial Chaos Begins (WS)
Pension Funds See 20% Spike In Deficit (AP)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Abenomics Is In Poor Health After Nikkei Slide, And It May Be Terminal (G.)
• Yen’s Best Two-Week Run Since 1998 Just the Start (BBG)
• The World’s Hottest Trade Has Suddenly Turned Ice-Cold (CNBC)
• Credit Default Swaps Are Back As Investors Look For Panic Button (BBG)
• ‘Austrians Need Constitutional Right to Pay in Cash’ (BBG)
• The Shipping Industry Is Suffering From China’s Trade Slowdown (BBG)
• China Central Bank: Speculators Should Not Dominate Sentiment (Reuters)
• America’s Big Banks Are Fleeing The Mortgage Market (MW)
• Large Increase in Debts Held by Americans Over Age 50 (WSJ)
• The Eurozone Crisis Is Back On The Boil (Guardian)
• Schäuble Says Portugal Debt Woes Trump ‘Strong’ Deutsche Bank (BBG)
• European Banks Are In The Eye Of A New Financial Storm (Economist)
• 150,000 Penguins Die After Giant Iceberg Renders Colony Landlocked (Guardian)
• Four Billion People Face Severe Water Scarcity (Guardian)
• Merkel Turns to ‘Coalition of Willing’ to Tackle Refugee Crisis (BBG)
• EU Is Poised To Restrict Passport-Free Travel (AP)
• 80,000 Refugees Arrive In Europe In First Six Weeks Of 2016 (UNHCR)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Japanese Stock Market Plunges 5% As Global Rout Gathers Pace (Guardian)
• Asian Shares Slip As Bank Fears Add To Global Gloom (Reuters)
• Global Assault on Banks Intensifies as Investors Punish Weakness (BBG)
• Emerging Stocks Rout Deepens on Risk Aversion as Currencies Drop (BBG)
• Yuan Declines Most in Two Weeks as Global Selloff Saps Sentiment (BBG)
• Asia’s Rich Advised to Buy Yen as BOJ’s Negative Rates Backfire (BBG)
• Who Stole The Yen Carry Trade? (CNBC)
• If Credit Is Right, The S&P Is Facing A 40% Crash (ZH)
• How Much Further Could Stocks Fall? (BI)
• S&P Cuts Deutsche Bank’s Tier 1 Securities Rating To B+ from BB- (Reuters)
• The Week When Central Bank Planning Died? (MW)
• China Buys The World With State-Backed Debt (FT)
• China Turns a Glut of Oil Into a Flood of Diesel (BBG)
• 11.5% Of Syrian Population Killed Or Injured (Guardian)
• Greeks At Frontline Of Refugee Crisis Angry At Europe’s Criticism (Reuters)
• The Grandmothers Of Lesvos (Kath.)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Europe Stocks Head for Worst Drop Since August as SocGen Plunges (BBG)
• Hong Kong Stocks Fall 4% in Worst Start to Lunar New Year Since ’94 (BBG)
• Yellen: Not Sure We Can -Legally- Do Negative Rate (CNBC)
• How Low Can Central Banks Go? JPMorgan Reckons Way, Way Lower (BBG)
• Kyle Bass Says China Bank Losses May Top 400% of Subprime Crisis (BBG)
• Bass: China Banks May Lose 5 Times US Banks’ Subprime Losses (CNBC)
• Germany’s DAX Is One Of The World’s Worst-Performing Stock Markets (BBG)
• It’s A Bad Time To Be A Bank (Ind.)
• European Banks Face More Energy Problems (CNBC)
• Energy Debt Fuels Broader Malaise (BBG)
• Is The Market In European Coco Bonds About To Pop? (Ind.)
• Some Hedge Funds Want to Make Subprime Auto Loans Next Big Short (BBG)
• The Mining Industry Makes Oil Giants Look Great (BBG)
• Why Does the US Government Pursue Student Debtors in Prison? (BBG)
• Notes from the Locked Ward (Jim Kunstler)
• When Will the Rest of Europe Want Its Own ‘Brexit’? (BBG)
• Will Greece Become a Refugee Bottleneck? (Spiegel)

The Daily Debt Rattel

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

• Europe’s Dead Cats Bounce, Deutsche Up 10% (BBG)
• Surging Credit Risk for Banks a Major Issue in European Markets (WSJ)
• Banks Eye More Cost Cuts Amid Global Growth Concerns (Reuters)
• Europe Banks May Face $27 Billion Energy-Loan Losses (BBG)
• European Banks: Oil, Commodity Exposure As High As 160% Of Tangible Book (ZH)
• Europe’s ‘Doom-Loop’ Returns As Credit Markets Seize Up (AEP)
• Options Bears Circle Nasdaq (BBG)
• Deutsche Bank’s Big Unknowns (BBG)
• The Market Isn’t Buying That Deutsche Bank Is ‘Rock Solid’ (Coppola)
• Deutsche Considers Multibillion Bond Buyback (FT)
• Distillates Demand Signals US Recession Is Imminent (BI)
• US Oil Drillers Must Slash Another $24 Billion This Year (BBG)
• Five Reasons Behind US Bank Stocks Selloff (FT)
• 10-Year Japanese Government Bond Yield Falls Below Zero (FT)
• EU Probes Suspected Rigging Of $1.5 Trillion Debt Market (FT)
• Italy, A Ponzi Scheme Of Gargantuan Proportions (Tenebrarum)
• Maersk Profit Plunges as Oil, Container Units Both Suffer (BBG)
• Australia Admits Recent Stellar Job Numbers Were Cooked (ZH)
• Pentagon Fires First Shot In New Arms Race (Guardian)
• NATO Weighs Mission to Monitor Mediterranean Refugee Flow (BBG)
• Border Fences Will Not Stop Refugees, Migrants Heading To Europe (Reuters)

The Daily Debt Rattle

Submitted by Raúl Ilargi Meijer  –  The Automatic Earth

‘Panic Situation’ As Asia Stocks Tumble Amid Fears Of New Global Recession (G.)
Global Bond Rally Near ‘Panic’ Level With Japan Yield Below Zero (BBG)
Japan’s 10-Year Yield Falls Below Zero for the First Time (BBG)
US Bank Stocks And Bonds Clobbered By Recession Worry (Reuters)
Investors Dump Stocks, Seek Safe Havens As Bank Fears Flare (Reuters)
Banks Bonds Are “The Epicenter Of Growth Concerns Globally” (BBG)
Goldman Sachs Sees Near-Zero Risk Of UK Recession Despite Market Tantrum (AEP)
Chesapeake Energy Plunges On Bankruptcy Fears (Forbes)
150 Oil And Gas Companies “At Risk Of Bankruptcy” As Prices Fall (BBG)
US Oil Industry Woes Grow As Storage Levels Hit ‘Critical Level’ (MW)
Jim Rogers: “The Market Knows It’s Over” (SHTF)
Can Hobbit Tourism Save New Zealand’s Troubled Dairy Farmers? (BBG)
Turkey’s Erdogan Threatened To Flood Europe With Migrants (Reuters)
35 Refugees Die Off Turkish Coast (Guardian)