Will EVs Break The Grid?

While the UK government has vowed to end the sale of all new conventional gasoline and diesel cars by 2040, as part of a wider plan to fight air pollution, there is talk that electricity demand will lead to a fast and dirty response to a strained power grid.
But here’s what everyone’s missing in that debate: While EV sales are going to rise and electricity demand to power them will strain the grid and lead to less-than-ideal power generation solutions, the whole plan will help clean power generation to increase its market share.
Nothing is black and white. And big transformations are never immediate. We’re not talking about an overnight elixir that will magically clean up the air; we’re talking about a step-by-step process that is gradually less dirty.

This post was published at Zero Hedge on Aug 17, 2017.

‘Deep’ Subprime Car Loan Delinquencies Highest Since 2007 (As Auto Dealer Offers Bad FICO Rebate!)

It was bound to happen, despite Dodd-Frank legislation and the creation of the Consumer Financial Protection Bureau following the financial crisis.
(Bloomberg) – Amid all the reflection on the 10-year anniversary of the start of the subprime loan crisis, here’s a throwback that investors could probably do without.
There’s a section of the auto-loan market – known in industry parlance as deep subprime – where delinquency rates have ticked up to levels last seen in 2007, according to data compiled by credit reporting bureau Equifax.
‘Performance of recent deep subprime vintages is awful,’ Equifax said in a slide show on second-quarter credit trends.

This post was published at Wall Street Examiner by Anthony B Sanders ‘ August 17, 2017.


GOLD: $1286.50 UP $13.45
Silver: $17.06 UP 11 cent(s)
Closing access prices:
Gold $1288.60
silver: $17.04
Premium of Shanghai 2nd fix/NY:$4.34
LONDON FIRST GOLD FIX: 5:30 am est $1285.90
For comex gold:
TOTAL NOTICES SO FAR: 4581 FOR 458,100 OZ (14.248 TONNES)
For silver:
425,000 OZ/
Total number of notices filed so far this month: 1000 for 5,000,000 oz

This post was published at Harvey Organ Blog on August 17, 2017.

The Dow Falls 274 Points As ‘Eclipse Fever’ Hits The Financial Markets

Have we now entered a time of major financial shaking? On Thursday, the Dow Jones Industrial Average was down 274 points. The was the largest decline for the Dow since May, and high yield bonds were down dramatically as well. Many are blaming the terror attack in Barcelona and ‘instability in the White House’ for the downturn, but could ‘eclipse fever’ also be a factor? The closer that we get to the solar eclipse on August 21st, the weirder people seem to be getting. You will see what I am talking about below.
But first let’s talk about the financial markets. I have been warning that stocks are massively overvalued for quite a while now, and it turns out that the Federal Reserve very much agrees with me…
‘Since the April assessment, vulnerabilities associated with asset valuation pressures had edged up from notable to elevated, as asset prices remained high or climbed further, risk spreads narrowed, and expected and actual volatility remained muted in a range of financial markets.’
Even the Fed is warning that we are in a bubble, and it is just a matter of time until that bubble bursts.

This post was published at The Economic Collapse Blog on August 17th, 2017.

Democratic Missouri Senator: “I Hope Trump Is Assassinated!”

A Missouri state senator, Maria Chappelle-Nadal (D-University City), has landed herself in a bit of hot water with with the U. S. Secret Service today after posting, then deleting, a comment on Facebook which read, “I hope Trump is assassinated!”
Unfortunately, as Chappelle-Nadal should have learned at this point in her life, the internet never forgets and the St. Louis Post-Dispatch managed to get their hands on the post:

This post was published at Zero Hedge on Aug 17, 2017.

CNN’s Wolf Blitzer Speculates That Barcelona Attack May Be “Copycat” Of Charlottesville

This is a new low, even for CNN.
Following a terrorist attack that has left at least 13 people dead and 50 injured in Barcelona after a van, allegedly driven by a man carrying a Moroccan passport, plowed through crowded streets (see our coverage here), CNN’s Wolf Blitzer actually suggested on air that the attacker may be a “copycat” looking to recreate the Charlottesville tragedy.
‘There will be questions about copycats. Questions, if what happened in Barcelona, was at all, at all, a copycat version of what happened in Charlottesville, Virginia,’ Blitzer said. ‘Even though they may be different characters and different political ambitions, they use the same killing device. A vehicle going at high speed a group, a large group, of pedestrians.’

This post was published at Zero Hedge on Aug 17, 2017.

“Friends Don’t Let Friends Buy VIX”

I would NOT be selling volatility here. My title was dripping with sarcasm…
Selling Volatility Is Very Crowded and Dangerous Now
You know a trade is getting crowded when my parents start asking about it. You know just how one sided something is when people think that even Chuck Norris can’t make money buying vol.
Last Week’s Spike in VIX has brought out nothing but sellers of volatility. I think selling VIX is very crowded and fraught with danger.
SVXY Shares Outstanding

This post was published at Zero Hedge on Aug 17, 2017.

We Sang Dirges in the Dark

I typically stay away from politics in The 10th Man. Besides, you probably get enough of it on Facebook!
I only study politics recreationally, so I feel that I only have a recreational grasp of it. I have a lot of respect for the very smart and incisive political pundits.
But I don’t stare at politics every day. I stare at markets every day, and I am pretty comfortable saying that my knowledge of markets is smarter and more incisive than most people’s.
And you know what I have noticed about markets lately? They don’t care about Trump.
When Merck CEO Ken Frazier stepped down from the President’s Manufacturing Council on account of Trump’s remarks on Charlottesville, did you see Trump’s reaction?
That sounds like a direct threat of litigation to me. You know what Merck stock did in response?

This post was published at Mauldin Economics on AUGUST 17, 2017.

Stocks and Precious Metals Charts – We’re Going Wrong

“And then many will fall by the wayside, and hate and betray one and another. False prophets will arise, and lead them astray. And because of the increase in wickedness, the love of many will grow cold. But those who stand firm to the end will be saved.
And the gospel of the kingdom will be preached throughout the whole world, as a testimony to all nations. And then the end will come.”
Matthew 24:10-15

As you can see from the schedule below, there will be a stock option expiration on this Friday.
The next Comex option expiration is on the 28th, and will be more significant for silver rather than gold for that option month.

This post was published at Jesses Crossroads Cafe on 16 AUGUST 2017.

Fed’s Kaplan Admits Stock Valuations Are Elevated, But He’s Not Worried For One Reason

There were two explicit warnings about stock market valuations in the latest Fed Minutes: first, the Fed warned that “vulnerabilities associated with asset valuation pressures had edged up from notable to elevated, as asset prices remained high or climbed further, risk spreads narrowed, and expected and actual volatility remained muted in a range of financial markets.” Then, in an odd admission, the Fed said that “recent rises in equity prices might be part of a broad-based adjustment of asset prices to changes in longer-term financial conditions, importantly including a lower neutral real interest rate, and, therefore, the recent equity price increases might not provide much additional impetus to aggregate spending on goods and services.” In other words, the entire premise behind the “wealth effect” – the assumption that high stock prices will lead to a boost in spending – may have been, oops, wrong.
One day later, Dallas Fed president Robert Kaplan picked up where the minutes left off with a discussion of market valuations, and said that while risks associated with high stock valuations may be “elevated” he is not worried; what he is worried about ‘is a correction accompanied with leverage.’

This post was published at Zero Hedge on Aug 17, 2017.

Shorting Stocks Will Outperform The Market

On December 1st, with a short-sell report I wrote on L Brands (LB) and published by Seeking Alpha that I used to launch the Short Seller’s Journal, I explained why L Brands was a great short idea at $96. Here was my rationale:
L Brands (NYSE:LB) is a specialty retailer that operates the Victoria Secret and Bath & Body Works chains. It also operates La Senza, a Canada-based intimate apparel retail concept, and Henri Bendel, a highend accessory products brand. The stock has run from under $7 in March 2009 to its current (November 27) price of $96.68. In that time period, it has outperformed the S&P 500 by over 350%. But, in the context of rapidly slowing revenue growth, declining operating margins, increasing financial leverage and a likely pullback in consumer spending, LB’s stock is extremely overvalued relative to its underlying fundamentals and relative to its peers. In my view, LB represents a compelling opportunity to short the highly overvalued stock of a company operating in a business sector facing significant economic headwinds.
Here’s how the LB short performed from 12/1/15 to present, after reporting an pre-arranged ‘beat’ of Wall St’s earnings estimates (the big game that has developed over the years is for management to ‘wink wink’ walk Wall Street’s robotic analysts’ quarterly estimates down to a level below the actual numbers the company plans to report) but was forced to warn about the rest of the year:

This post was published at Investment Research Dynamics on August 17, 2017.

Tech Rally Internals Tank: Nasdaq Ratio Crashes To Record Low

On an equal-weight basis, the Nasdaq 100 just dropped to a relative all-time low.
There are countless ways to measure the level of participation in a stock market rally. By ‘participation’, we are referring to the number of stocks that are taking part in the rally. One way is to look at the market’s ‘internals’, e.g., advances vs. declines, new highs vs. new lows, etc. As an indication of good quality participation, we like to see a high number of each of the former vs. each of the latter. When that is not occurring, even as the indices hold up well, we say that the rally is ‘thinning’, or seeing a decreasing level of participation. We’ve published multiple examples of this internal weakness in recent weeks.
Another way of measuring participation within a rally is by looking at indices on an equally-weighted basis instead of a cap-weighted basis. I

This post was published at Zero Hedge on Aug 17, 2017.

If the Lights Go Out, You’ll Want to Own Gold

Imagine the financial chaos that would ensue if there was a widespread, long-term, power grid failure. Business would literally halt.
Stop and think for a moment about how dependent the financial system is on computers. Banking, stock and bond trading, and the vast majority of our day-to-day transactions, rely on computer networks. Many people don’t even use cash anymore. Everything is digital. We even have wholly digital currencies like Bitcoin.
We take these computer systems for granted. In reality, they put us at considerable financial risk. This vulnerability is another reason you should buy gold.
During a recent interview covered in Forbes, Marc Faber talked about the importance of owning physical assets like gold and silver, and holding them outside of the banking system. He said the biggest geopolitical risk isn’t a conventional war. It’s a cyber attack that could take down the power grid.

This post was published at Schiffgold on AUGUST 17, 2017.

Is The Eclipse Nothing More Than A Money-Making Scheme For The Elites?

There are many conspiracies surrounding the total solar eclipse that will occur on Monday, August 21. Everyone, including scientists, talk like this is a sure thing, but is it?
Some conspiracy theorists are asking us all to follow the money. And they make a few good points. On August 21, the moon will pass between the Earth and the sun, obscuring the light of our star. The government agency NASA says this will result in ‘one of nature’s most awe-inspiring sights.’ But some say that it’s all just a gigantic conspiracy to make money.
The Atlantic says ‘something doesn’t add up.’ The astronomers at NASA claim to have calculated down to the minute exactly when and where this will happen, and for how long, and have put out maps detailing the ‘path of totality.’ They have reportedly known about this eclipse for years, just by virtue of some sort of complex math. But they haven’t released the math to the public so we can check the calculations for ourselves.

This post was published at shtfplan on August 17th, 2017.

So When Will China’s Debt Bubble Finally Blow Up?

The upside is fake stability. The downside is too ugly to contemplate.
Corporate debt in China has soared to $18 trillion, or 169% of GDP, the largest pile of corporate debt in the world, according to the worried Bank for International Settlements. The OECD has warned about it earlier this year. The New York Fed warned about this debt boom in February and that it could lead to a ‘financial crisis,’ but that authorities have many tools to control it.
The IMF regularly warns about China’s corporate debt, broken-record-like, and did so again a few days ago, lambasting the authorities for their reluctance to tamp down on the growth of debt. The ‘current trajectory,’ it said, ‘could eventually lead to a sharp adjustment.’
The Chinese authorities – the government and the central bank, supported by the state-owned megabanks – have allowed some bonds to default, rather than bail them out, to make some kind of theoretical point, and they have been working furiously on a balancing act, tamping down on the credit growth that fuels the economy and simultaneously stimulating the economy with more credit to keep the debt bubble from imploding. A misstep could create a global mess.
‘Everyone knows there’s a credit problem in China, but I find that people often forget about the scale; it’s important in global terms,’ Charlene Chu told the Financial Times. Back in 2011, when she was still a China banking analyst at Fitch Ratings, she went out on a limb with her radical estimates that there was much more debt than disclosed by the central bank, particularly in the shadow banking system, that banks were concealing risky loans in off-balance-sheet vehicles, and that this soaring opaque debt could have nasty consequences. Her outlandish views at the time have since then become the consensus.

This post was published at Wolf Street on Aug 17, 2017.

Republican Senator Corker Calls For “Radical Change” In The White House

Tennessee Republican Senator Bob Corker has just unloaded on President Trump as he spoke to reporters…
“I do think that there do need to be radical changes. The President has not yet been able to demonstrate the stability nor some of the competence that he needs to demonstrates in order to be successful. And we need for him to be successful, our nation needs for him to be successful. It doesn’t matter whether you are republican or democrat. We need for our president, the world needs our president to be successful.”
“He also has recently not demonstrated that he understands the character of this nation. He has not demonstrated that he understands what makes this nation great and what it is today. He has got to demonstrate the characteristics of a president who understands that.
And without the things that I just mentioned happening our nation is going to go through great peril.

This post was published at Zero Hedge on Aug 17, 2017.