This Is Where America's Runaway Inflation Is Hiding | Zero Hedge

This Is Where America's Runaway Inflation Is Hiding | Zero Hedge: "Which brings us to the one chart showing where the "missing" runaway inflation in the US is hiding: if one shows the annual increase in asking rents, what one gets is the following stunning chart which shows that while rent inflation had been roughly in the 1-2% corridor for two decades, starting in 2013 something snapped, and rent inflation for some 43 million Americans has exploded and is currently printing at a blended four quarter average rate of just over 8%, the highest on record, and 4 times higher than Yellen's inflationary target."



'via Blog this'

Obama Admits Couldn't "Convince Americans Of Recovery", Bashes 'The Big Short' | Zero Hedge

Obama Admits Couldn't "Convince Americans Of Recovery", Bashes 'The Big Short' | Zero Hedge: "Reflecting on his economic legacy, President Barack Obama disputes the conclusion in “The Big Short” movie that nothing changed on Wall Street after the 2008 economic meltdown, and maintains that his policies have helped stabilize the financial sector.
 "

Perhaps the following nine charts will provide a little more color as just what "saving the world" looks like for President Obama (red shaded section is his 'reign') and why the American public just would not fall for his now-admitted bullshit...

But that's not all, in his New York Times' diatribe, President Obama takes further aim at more fiction-peddlers - those of "The Big Short"...as Bloomberg reports,

Reflecting on his economic legacy, President Barack Obama disputes the conclusion in “The Big Short” movie that nothing changed on Wall Street after the 2008 economic meltdown, and maintains that his policies have helped stabilize the financial sector.

...Obama bemoaned his fractious relationship with Wall Street, said finance is absorbing more science and engineering talent than it should, and speculated he might have gone into business if not politics. But he has little patience for criticism from business leaders.

“One of the constants that I’ve had to deal with over the last few years is folks on Wall Street complaining, even as the stock market went from in the 6,000s to 16,000 or 17,000,” he said, referring to the rise in the Dow Jones Industrial Average during his administration.

“They’d be constantly complaining about our economic policies. That’s not rooted in anything they’re experiencing; it has to do with ideology and their aggravations about higher taxes.”

In the Dodd-Frank legislation to overhaul the financial system, Obama sees a major shift in how Wall Street is regulated. He takes issue with Hollywood’s version, reflected in the 2015 film “The Big Short,” which suggested that little has changed on Wall Street. The movie was based on the 2010 best-seller of the same name by Michael Lewis.

“There is no doubt that the financial system is substantially more stable,” Obama said, adding, “It is true that we have not dismantled the financial system, and in that sense, Bernie Sanders’s critique is correct.”

Yeah looks like you really showed them!!

'via Blog this'

'Investors' Panic-Buy S&P At Open - Erases All BoJ Cliff-Dive Losses | Zero Hedge

'Investors' Panic-Buy S&P At Open - Erases All BoJ Cliff-Dive Losses | Zero Hedge: "It appears Facebook Ads trumps trillions from Kuroda... for now..."

Well that un-escalated quickly...

It appears Facebook Ads trumps trillions from Kuroda... for now...

'via Blog this'

2.607 Days Later, The "Most Hated Bull Market Ever" Is Now The Second Longest In History | Zero Hedge

2.607 Days Later, The "Most Hated Bull Market Ever" Is Now The Second Longest In History | Zero Hedge: "And it only took $14 trillion in central bank liquidity, a global, coordinated central bank "put", central banks purchases of Treasuries, MBS, ETFs and corporate bonds,  and nearly 700 rate cuts in the past 7 years to achieve it."



'via Blog this'

The ‘Trump Effect’ is contaminating our kids — and could resonate for years - The Washington Post

The ‘Trump Effect’ is contaminating our kids — and could resonate for years - The Washington Post: "Think we’re in for a disastrous four years if Donald Trump is elected president?

You’re being optimistic. Given what some of our children are learning from him, it may take an entire generation to recover from the hateful rhetoric he has aimed at immigrants, Muslims and Blacks Lives Matter protesters.

Trump’s vitriol is making it off the campaign trail and into the lingua franca of children at an alarming rate. Just watch coverage from Trump rallies to hear the next phrases kids will be slinging at school."



'via Blog this'

Intel to cut 12,000 jobs globally - Apr. 19, 2016

Intel to cut 12,000 jobs globally - Apr. 19, 2016: "Tech giant Intel will cut up to 12,000 people from its staff globally, or about 11% of its workforce, the company announced Tuesday."



'via Blog this'

Caterpillar cuts 2016 profit outlook, sees China improvement | Reuters

Caterpillar cuts 2016 profit outlook, sees China improvement | Reuters: "Caterpillar Inc, the world's largest maker of heavy machinery, on Friday lowered its 2016 sales and earnings outlook as steep declines in revenue from its construction, oil and gas and rail business segments hurt quarterly profit.

Caterpillar, which has seen demand for equipment used in the energy and mining industries hit hard by a drop in commodity prices, experienced lower sales in the first quarter across all regions. To help stem the slide, Caterpillar cut about 8,600 jobs and closed nearly 15 facilities so far as part of a restructuring plan announced in 2015.

Even so, Caterpillar said it is encouraged by improvement in demand for heavy machinery in China.

"Infrastructure projects are starting and for the first time in a few years, we're seeing stronger demand from China," said Caterpillar Chief Financial Officer Brad Halverson.

In fact, Chinese sales of construction equipment are up slightly year-over-year, the company said.

The Peoria, Illinois company now expects 2016 earnings per share at $3.00, or $3.70 per share excluding restructuring costs. The previous forecast was $3.50 per share, or $4.00 per share, excluding restructuring costs."



'via Blog this'

One Commodity Trader Writes: "What Is Happening Has Absolutely No "Reasonable" Explanation" | Zero Hedge

One Commodity Trader Writes: "What Is Happening Has Absolutely No "Reasonable" Explanation" | Zero Hedge: "What explains the move in Crude? Ok, I could try and put some sort of “rationality” on the initial move from $26 - $40 (as crazy as it was), but the action in the oil market since Sunday’s “about face” in Doha?  No way anything other than pure, simple and outright manipulation can explain these last 3 days of action in the crude oil market… nothing…

How about the fact that the main drag on the inflation figures has been what? What? FOOD

Where the World's Unsold Cars Go To Die | Zero Hedge

Where the World's Unsold Cars Go To Die | Zero Hedge: "In the past several years, one of the topics covered in detail on these pages has been the surge in such gimmicks designed to disguise lack of demand and end customer sales, used extensively by US automotive manufacturers, better known as "channel stuffing", of which General Motors is particularly guilty and whose inventory at dealer lots just hit a new record high. But did you know that when it comes to flat or declining sales and stagnant end demand, channel stuffing is merely the beginning?

Presenting...

Where the World's Unsold Cars Go To Die"

In the past several years, one of the topics covered in detail on these pages has been the surge in such gimmicks designed to disguise lack of demand and end customer sales, used extensively by US automotive manufacturers, better known as "channel stuffing", of which General Motors is particularly guilty and whose inventory at dealer lots just hit a new record high. But did you know that when it comes to flat or declining sales and stagnant end demand, channel stuffing is merely the beginning?

Presenting...

Where the World's Unsold Cars Go To Die (courtesy of Vincent Lewis' Unsold Cars)

Above is just a few of the thousands upon thousands of unsold cars at Sheerness, United Kingdom.  Please do see this on Google Maps....type in Sheerness, United Kingdom.  Look to the west coast, below River Thames next to River Medway. Left of A249, Brielle Way.

Timestamp: Friday, May 16th, 2014.

There are hundreds of places like this in the world today and they keep on piling up...

THE WORLDS UNSOLD CAR STOCKPILE

Houston...We have a problem!...Nobody is buying brand new cars anymore!  Well they are, but not on the scale they once were.  Millions of brand new unsold cars are just sitting redundant on runways and car parks around the world.  There, they stay, slowly deteriorating without being maintained.

Below is an image of a massive car park at Swindon, United Kingdom, with thousands upon thousands of unsold cars just sitting there with not a buyer in sight. The car manufacturers have to buy more and more land just to park their cars as they perpetually roll off the production line.

There is proof that the worlds recession is still biting and wont let go.  All around the world there are huge stockpiles of unsold cars and they are being added to every day.  They have run out of space to park all of these brand new unsold cars and are having to buy acres and acres of land to store them.

NOTE:

The images on this webpage showing all of these unsold cars are just a very small portion of those around the world.  There are literally thousands of these "car parks" rammed full of unsold cars in practically every country on the planet.  Just in case you were wondering, these images have not been Photoshopped, they are the real deal!

Its hard to believe that there are so many unsold cars in the world but its true.  The worse part is that the amount of unsold cars keeps on getting bigger every day.

It would be fair to say that it is becoming a mechanical epidemic of epic proportions.  If anybody from outer space is reading this webpage, we here on Earth have too many cars, why not come and buy a few hundred thousand of them for your own planet! (sorry but this is all I can think of)

Below is shown just a few of the 57,000 cars (and growing) that await delivery from their home in the Port of Baltimore, Maryland, U.S.A. With Google Maps look South of Broening Hwy in Dundalk for the massive expanse of space where all these cars are parked up.

The car industry would never sell these cars at massive reductions in their prices to get rid of them, no they still want every buck.  If they were to price these cars for a couple of thousand they would sell them.  However, nobody would then buy any expensive cars and then they  would end up being unsold.  Its quite a pickle we have gotten ourselves into.

Below is shown an image of the Nissan test track in Sunderland United Kingdom.  Only it is no longer being used, reason...there are too many unsold cars parked up on it!  The amount of cars keeps on piling up on it until its overflowing.  Nissan then acquires more land to park up the cars, as they continue to come off the production line.

UPDATE: Currently May 16th, 2014, all of these cars at the Nissan Sunderland test track have disappeared? Now I don't believe they have all suddenly been sold.  I would guess they may have been taken away and recycled to make room for the next vast production run.

Indeed next to that test track and adjacent to the Nissan factory, they are collating again as shown on the Google Maps image below.  So where did the last lot go? This is not an employees car park by the way.

None of the images on this webpage are of ordinary car parks at shopping malls, football matches etc.  Trust me, they are just mountains and mountains of brand spanking new unsold cars. There is no real reason why you should be driving an old clunker now is there?

The car industry cannot stop making new cars because they would have to close their factories and lay off tens of thousands of employees.  This would further add to the recession.  Also the domino effect would be catastrophic as steel manufactures would not sell their steel. All the tens of thousands of places where car components are made would also be effected, indeed the world could come to a grinding halt.

Below is shown just a small area of a gigantic car park  in Spain where tens of thousands of cars just sit and sunbathe all day.

They are also piling up at the port of Valencia in Spain as seen below.  They are either waiting to be exported to...nowhere or have been imported...to go nowhere.

Tens of thousands of cars are still being made every week but hardly any of them are being sold.  Nearly every household in developed countries already has a car or even two or three cars parked up on their driveway as it is.

Below is an image of thousands upon thousands of unsold cars parked up on a runway near St Petersburg in Russia.  They are all imported from Europe, they are all then parked up and they are all then left to rot. Consequently, the airport is now unusable for its original purpose.

The cycle of buying, using, buying using has been broken, it is now just a case of "using" with no buying. Below is an image of thousands of unsold cars parked up on an disused runway at Upper Heyford, Bicester, Oxfordshire. They are seriously running out of space to store these cars.

It is a sorry state of affairs and there is no answer to it, solutions don't exist.  So the cars just keep on being manufactured and keep on adding to the millions of unsold cars already sitting redundant around the world.

Below are parked tens of thousands of cars at Royal Portbury Docks, Avonmouth, near Bristol in the United Kingdom. If you look on Google Maps and scan around the area at say 200ft you will see nothing but parked up unsold cars. They are absolutley everywhere in that area practically every open space has unsold cars parked up on it.

Below is that same area in Avonmouth, UK, but zoomed out. Every gray space that you see is filled with unsold cars.  Anyone want to hazard a guess at how many are there...

As it is, there are more cars than there are people on the planet with an estimated 10 billion roadworthy cars in the world today.

We literally cannot make enough of them. Below are seen just a few of the thousands of Citroen's parked up at Corby, Northamptonshire in England. They are being added to daily, imported from France but with nowhere else to go once they arrive.

So there they sit, brand spanking new cars, all with a couple of miles on the clock that was consummate with them being driven to their car parks.  Below is the latest May 2014 Google Maps image of unsold cars in Corby, Northamptonshire.

Manufacturing more cars than can be sold is against all logic, logistics and economics but it continues day after day, week after week, month after month, year in year out.

Below is shown a recent (April 2014) screen grab from Google Maps of the Italian port of Civitavecchia.  All those little specks are a few thousand brand new unsold Peugeots.  Just collecting dust and maybe a bit of salty sea spray!

Below, all nice and shiny but with nowhere to go.  Red and white and black and silver, purple, pink and blue, all the colors of the rainbow and be they all brand new.  Indeed all the colors of the rainbow are down there on those cars, making pretty mosaics, montages of color and still life.  Maybe that is all they will now ever be, surreal urban art of the techno production age.  Magnificent metal boxes, wasting space and saving grace, all sitting still, because its business at mill.

All around the world these cars just keep on piling up, there is no end in sight.  The economy shouts out quite loud that nobody has the money anymore to spend on a new car. The reason being that they are making their "old" cars go on a lot longer.  But we cannot stop making them, soon we will run out of space to park them.  We are nearly running out of space to drive them that's for sure!

Below, more cars mount up in the port of Valencia in Spain. They will not be exported as there is nowhere for them to go, so they just sit and rot in their colorful droves.

Gone are the days when the family would have a new car every year, they are now keeping what they have got.  It may be fair to say that some  families still get a new car every year but its the majority that now do not.

The results are in these images, hundreds of thousands if not millions of cars around the world are driven from their factories, parked up and left.

Could we say that these cars have been left to rot!  Maybe, as these cars will certainly rot if they are not bought, driven and cared for.  It does not look like they will be sold any day soon, many of them have been standing for over 12 months or even longer and this is detrimental to the car.

Below, as far as the eye can see, right into the background, cars, cars and more cars. But what's beyond the horizon?  Have a guess...Yes that's right...even more cars!  All brand new but with no homes to go to.  Do you think they will ever start giving them away, that may be the only radical solution.  Who knows, you could soon be getting a free car with every packet of cornflakes.

When a car is left standing idle, all the oil sinks to the bottom of the sump, and then corrosion begins to set in on all the internal engine parts where the oil has drained away.

Cold corrosion is when condensation builds up in the cylinders and rust forms in the bores. The engines would then start to seize and would need to be professionally freed before they could be started.  Also the tires start to lose air and the batteries start to go flat, indeed the detrimental list goes on and on.

So the longer they sit there the worse it slowly becomes for them.  What is the answer to this?  Well they need to be sold and that just isn't happening.

The epidemic is not improving, it is getting worse.  Car manufactureres are constantly coming out with new models with the latest technology in them.  Hence prospective buyers of, for example, a new Citroen Xsara Picasso want the latest model, not last years model.  Hence all the unsold Citroen Xsara Picasso cars from the previous year will now have even lesser chance of being sold.

The problems then just keep on mounting up.  In the end, the unsold cars that are say 2 years old will have no alternative but to be either crushed up, dismantled and/or their parts recycled.

Some car manufacturers moved their production over to China, General Motors and Cadillac are examples of this.  They are then shipped over in containers and unloaded at ports.  However they are now being told to put a big halt in their import into the U.S.A. as they just can't sell them in the quantities they would desire.  Consequently Chinese car parks are now filling up with brand new American cars.  Well nobody in China can afford them on their meagre pittance wages, so there they will stay until our economy improves...which it might do in a few generations.

'via Blog this'

The Last Time Automakers Channel-Stuffed This Much, Lehman and GM Went Bankrupt | Zero Hedge

The Last Time Automakers Channel-Stuffed This Much, Lehman and GM Went Bankrupt | Zero Hedge: "While day after day we are told how fantastic auto sales are in America... and how the reported data from the automakers shows just how 'strong' the US consumer must be.. and therefore the US economy.

However, as the following chart shows - it's all false!!

Relative to apparently surging sales, inventories of (unsold) motor vehicles are at their highest since August 2008..."



'via Blog this'

"Why Stocks Need More Really Bad News" | Zero Hedge

"Why Stocks Need More Really Bad News" | Zero Hedge: "it is simply because every uptick is on the back of more artificial stimulus and no reflection of actual organic growth and fundamentals"



'via Blog this'

"China Yuan Gold Fix Is Part Of A Planned Shift From Dollar": China's Bocom | Zero Hedge

"China Yuan Gold Fix Is Part Of A Planned Shift From Dollar": China's Bocom | Zero Hedge: "China's shift to an official local-currency-based gold fixing is "the culmination of a two-year plan to move away from a US-centric monetary system," according to Bocom strategist Hao Hong. In an insightfully honest Bloomberg TV interview, Hong admits that "by trading physical gold in renminbi, China is slowly chipping away at the dominance of US dollars." Gold, silver, and petroleum "are the three USD-based commodites that China wants most control of" according to Hong but "gold in particular is one of the commodities that China is hoarding very hard.""



'via Blog this'

Fed Inspector General: "We Discovered Issues That Warrant Immediate Attention" | Zero Hedge

Fed Inspector General: "We Discovered Issues That Warrant Immediate Attention" | Zero Hedge: "Will anything change? Most certainly: the WSJ will be far more careful when reported on B-grade stories that are hardly market moving, while Jon Hilsenrath will be put behind even more expensive firewalls so that only the richest hedge fund managers will have access to his "Fed expert network" information.

Will the Fed actually stop leaking information that makes billionaires out of millionaires? Don't make us laugh.

"



'via Blog this'

S&P 500 Tops 2,100 - What Happens Next? | Zero Hedge

S&P 500 Tops 2,100 - What Happens Next? | Zero Hedge: "Following the disappointment of Doha, US equities have soared off the dip with The Dow topping the all-important 18,000 level and now S&P back above 2,100..."

Following the disappointment of Doha, US equities have soared off the dip with The Dow topping the all-important 18,000 level and now S&P back above 2,100...

All the while, earnings are collapsing.

Looks fine to us, right? What could go wrong?

'via Blog this'

Institutionalized Lying - Why Central Bankers Never See Bubbles | Zero Hedge

Institutionalized Lying - Why Central Bankers Never See Bubbles | Zero Hedge: "Every day there is more confirmation that the casino is an exceedingly dangerous place and that exposure to the stock, bond and related markets is to be avoided at all hazards. In essence the whole shebang is based on institutionalized lying, meaning that prouncements of central bankers, Wall Street brokers and big company executives are a tissue of misdirection, obfuscation and outright deceit."

At length, all of these scams will give way to the reality of a gathering global recession and a sustained slump in earnings. That is, the S&P 500 is heading through 1300 from above long before it ever again penetrates from below its old May 2015 high of 2130——even as the robo-machines play tag with the chart points.

But as indicated above, reported LTM profits as of year-end 2015 stood at just $86.47 per S&P 500 share. That particular number is a flat-out bull killer. At a plausible PE multiple of 15X, it does indeed imply 1300 on the S&P 500 index.

It also means that the robo-machines and hedge fund gamblers have painted a scarlet numeral of 24.2X on the casino’s front entrance. But it comes at a time when the so-called historical average PE ratios are way too high for present realities. That is, in a world sliding into a prolonged deflationary decline, capitalization rates should be falling into the sub-basement of history, not soaring into it’s nosebleed section.

Why? Because current earnings are worth far less than normal owing to the prospect that renewed earnings growth anytime soon is lodged somewhere between zero and none.

So when capitalization rates should be plunging the casino has them soaring, while pretending its all awesome on the earnings front through the process of institutionalized lying, as was on such pointed display today.

Indeed, for the third time this century, corporate earnings are already in free fall. Yet the Wall Street hockey sticks are still pointing archly to the upper right of the chart.

Yet this time the backstory is even sketchier. When reported S&P 500 earnings peaked at $84.92 per share in June 2007 (LTM basis), they had grown at a 6.8% annualized rate since the prior peak of about $54/share in Q3 2000. By contrast, at the reported $86.47 level for the LTM period ending in Q4 2015, the implied 8-year growth rate is…….well, nothing at all unless you prefer two digit precision. In that case, the CAGR is 0.22%.

That’s right. Based on the kind of real corporate earnings that CEOs and CFOs must certify on penalty of jail time, profits are now barely above the June 2007 level, and are once again heading down the slippery slope traced twice already during this era of central bank bubble finance.

Yes, as per today’s blatant legerdemain, the sell side stock peddlers insist these GAAP profits are to be ignored because they are chock-a-block with non-recurring items.

Well, yes they are. As an excellent recent Wall Street Journal investigation showed, the Wall Street version of ex-items earnings came in for 2015 at $1.040 trillion for the S&P 500.But that was 32% higher than actual GAAP earnings of $787 billion!

'via Blog this'

Punching cars hurts everyone

Punching cars hurts everyone: "Faking new-vehicle sales. Reporting as "sold" new vehicles that stay on the lot as service loaners, rentals, demos or "executive" cars. Vehicles quickly resold as used at big discounts, with little or no mileage.

I'm not talking about normal demos and service loaners that see significant use before being resold.

Every calendar year, there's a discrepancy between reported U.S. sales and registrations, averaging 128,000 annually between 2005 and 2014. But in 2015, that jumped to 286,832. That's a lot of, ahem, service loaners.

Call it car punching. Call it fuzzy sales. It's probably not illegal. I'm sure some automaker can trot out a business plan showing it makes financial sense and is legit.

Car punching is still a bad habit.

And automakers should knock it off. Especially in a market still rising.

There are drawbacks to overdoing incentives, leasing, long loans and dumping unwanted vehicles into rental fleets. But the results are fairly predictable. Excessive leases or rental cars become gluts of returning used cars. Big spiffs crush profits. Long loan buyers stay out of the market longer.

But fake sales are toxic. Like acid, they slowly eat away at brands.

If at month end, an automaker pressures dealers to self-register several new vehicles -- as service loaners, demos, dealer rentals or dealer employee short-leases -- that may boost "sales" that month.

But it's a bad deal all around. The dealer's factory cash may not cover losses on discounted "used" cars. The factory pulled that bonus from other marketing funds -- or profits."



'via Blog this'

Thursday Humor - Initial Jobless Claims "Unexpectedly" Plunge To 43-Year Lows | Zero Hedge

Thursday Humor - Initial Jobless Claims "Unexpectedly" Plunge To 43-Year Lows | Zero Hedge: "Having risen along with weakness in broad market surveys (ISM, PMI, NFIB) throughout January, initial jobless claims have plunged twice since (despite the same surveys getting worse) breaking down to 253k in the last week - the lowest since 1973!"



'via Blog this'

Jobless Claims in U.S. Decline to Match Lowest Since 1973 - Bloomberg

Jobless Claims in U.S. Decline to Match Lowest Since 1973 - Bloomberg: "“Jobless claims are running really low and all other labor market data are telling us that the economy is creating a lot of jobs,” said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. “This is further confirmation that the labor market is strong.”"



'via Blog this'

Regulators reject plans of 5 big U.S. banks for preventing another taxpayer bailout - The Washington Post

Regulators reject plans of 5 big U.S. banks for preventing another taxpayer bailout - The Washington Post: "Federal regulators said Wednesday that five of the country’s largest banks, including JPMorgan Chase and Bank of America, still don’t have credible plans for winding down their operations without taxpayer help if they start to fail.

These so-called “living wills” are a critical requirement of the 2010 financial reform package, Dodd-Frank, aimed at a preventing a repeat of the taxpayer bailouts that took place during the financial crisis. The regulators found various problems with the plans submitted by Bank of America, Bank of New York Mellon, J.P. Morgan Chase, State Street, and Wells Fargo.

The failures are likely to tap into populist concerns that U.S. banks are still “too big to fail.”  It comes as the banking sector is likely to report weaker financial results for the first quarter of the year.

The five banks have until October to address the problems found by the Federal Reserve and the Federal Deposit Insurance Corporation. If the deficiencies aren’t addressed, the banks could face higher capital requirements or other regulatory sanctions if their plans are still not deemed sufficient."



'via Blog this'

JPMorgan's Q1 income falls 6.7% but beats estimates; stock jumps

JPMorgan's Q1 income falls 6.7% but beats estimates; stock jumps: "JPMorgan Chase (JPM), the nation’s largest bank by assets, said Wednesday its first quarter net income fell 6.7% from a year ago to $5.5 billion after it raised its loan loss reserves.

Earnings per share for the New York-based company totaled $1.35 vs. $1.26 estimated by the analysts who were polled by S&P Global Market Intelligence.

Revenue dipped 3% to $24.1 billion. It beat $22.9 billion estimated by the analysts.

The company's stock rose 3% in pre-market trading.

JPMorgan's results are key because they offer the first look at whether the concerns that have hammered bank stocks this year are justified. Industry executives have warned that falling oil prices, declining merger activities and global economic uncertainties are weighing on their businesses despite continued robustness in consumer banking.

"We delivered solid results this quarter with strong underlying drivers," said CEO Jamie Dimon in a statement. "The consumer businesses continue to grow loans and deposits impressively, attracting deposits faster than the industry. The U.S. consumer remains healthy and consumer credit trends are favorable.”

The sluggish environment in its investment banking and asset management businesses was attributed for the revenue decline. "The decline was largely
driven by lower fixed income markets revenue and investment banking fees, in both cases versus strong performance in the prior year
quarter," JPMorgan said.

Large banks, including JPMorgan, have raised their loan loss reserves for the first time in years in response to souring loans to troubled oil and gas companies, raising costs and worrying investors. And it showed in the latest results. Its provision for credit losses was raised from $959 million a year ago to $1.8 billion in the first quarter, cutting into its bottom line.

JPMorgan's consumer and community banking, its largest business unit, reported a 4% revenue gain to $11.1 billion due to higher deposit balances, deposit-related fees and debit card revenue. Net income rose 12% to $2.5 billion.

Mortgage banking revenue was 7% higher to $1.9 billion, fueled by growth in its loans. The business that issues credit cards and business and car loans reported $4.7 billion in revenue, up 2%, driven by higher auto lease, credit card sales volumes and higher loan balances.

Its corporate and investment banking unit, which handles mergers, acquisitions, corporate finance and other transactions, saw its revenue tumble 15% to $8.1 billion, Lower debt and equity underwriting fees were blamed but higher advisory fees helped offset the decline. Net income fell 22% to $2 billion.

The asset management unit, which manages money for clients, reported a 1% decline in revenue to $3 billion. Net income rose 17% to $587 million due to higher interest income and loan growth."



'via Blog this'

Ben Bernanke: "Helicopter Money May Be The Best Available Alternative" | Zero Hedge

Ben Bernanke: "Helicopter Money May Be The Best Available Alternative" | Zero Hedge: "Which brings us to Bernanke's conclusion:

Money-financed fiscal programs (MFFPs), known colloquially as helicopter drops, are very unlikely to be needed in the United States in the foreseeable future. They also present a number of practical challenges of implementation, including integrating them into operational monetary frameworks and assuring appropriate governance and coordination between the legislature and the central bank. However, under certain extreme circumstances—sharply deficient aggregate demand, exhausted monetary policy, and unwillingness of the legislature to use debt-financed fiscal policies—such programs may be the best available alternative. It would be premature to rule them out"



'via Blog this'

Here Is What Janet Yellen Answered When Asked If The U.S. Is In An "Economic Bubble" | Zero Hedge

Here Is What Janet Yellen Answered When Asked If The U.S. Is In An "Economic Bubble" | Zero Hedge:



Sphincter says what ? -



 "This was her response:

Well, let me start -- let me start with the question of the Fed's credibility. And you used the word "promises" in connection with that. And as I tried to emphasize in my opening statement, the paths that the participants project for the federal funds rate and how it will evolve are not a pre-set plan or commitment or promise of the committee. Indeed, they are not even -- the median should not be interpreted as a committee-endorsed forecast.  And there's a lot of uncertainty around each participant's projection. And they will evolve. Those assessments of appropriate policy are completely contingent on each participant's forecasts of the economy and how economic events will unfold. And they are, of course, uncertain. And you should fully expect that forecasts for the appropriate path of policy on the part of all participants will evolve over time as shocks, positive or negative, hit the economy that alter those forecasts. So, you have seen a shift this time in most participants' assessments of the appropriate path for policy. And as I tried to indicate, I think that largely reflects a somewhat slower projected path for global growth -- for growth in the global economy outside the United States, and for some tightening in credit conditions in the form of an increase in spreads. And those changes in financial conditions and in the path of the global economy have induced changes in the assessment of individual participants in what path is appropriate to achieve our objectives. So that's what you see -- that's what you see now.
Got that?  Apparently neither did Liesman, who openly admitted in his traditional post-Fed spar with Rick Santelli, the following:

Santelli: Steve, could you understand any of it? Any of it seriously? Just a yes or no.
Liesman: Not much, it was not precisely responsive to the question i asked."



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Q1 GDP To Be Revised Even Lower After February Trade Deficit Grows More Than Expected | Zero Hedge

Q1 GDP To Be Revised Even Lower After February Trade Deficit Grows More Than Expected | Zero Hedge: "As of this moment, the Atlanta Fed calculates Q1 GDP to be -0.7% (Bank of America has it at 0.6%). We expect this number to be promptly revised even lower following the latest disappointing trade data from the US, when moments ago the BEA reported that the US February deficit rose from $45.9BN to $47.1BN, missing the $46.2BN consensus estimate. This was the largest monthly deficit since August 2015's $50.5BN, and the number is likely only going to increase as the US is once again forced to start importing more oil with its own shale industry increasingly mothballed.

From the BEA:

The U.S. monthly international trade deficit increased in February 2016 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $45.9 billion in January (revised) to $47.1 billion in February, as imports increased more than exports. The previously published January deficit was $45.7 billion. The goods deficit increased $0.9 billion from January to $64.7 billion in February. The services surplus decreased $0.3 billion from January to $17.7 billion in February."



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In 20 Words The ECB Explains The Business Model Of Every Central Bank | Zero Hedge

In 20 Words The ECB Explains The Business Model Of Every Central Bank | Zero Hedge: "
"Central banks are protected from insolvency due to their ability to create money and can therefore operate with negative equity."
"



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Treasury Dept. tries again to stop companies from giving up U.S. citizenship for lower taxes - Chicago Tribune

Treasury Dept. tries again to stop companies from giving up U.S. citizenship for lower taxes - Chicago Tribune: "Currently, in order to escape some of the restrictions that Congress and Treasury have put in place to stop inversions, the shareholders of the U.S. company must own less than 60 percent of the combined company. Pfizer's shareholders would own 56 percent of the combined company, for example. But that is in part because Allergen has completed previous acquisitions of U.S. companies that have increased its size. The biggest was when the former Actavis bought Allergan.


Raw deal for AbbVie, but does anyone care?
Under the new rules, stock that Allergan has issued within the past three years to acquire U.S. companies wouldn't be included in the calculations.

Pfizer is reviewing the Treasury Department's announcement, Joan Campion, a company spokeswoman, told Bloomberg. "We won't speculate on any potential impact until the review is completed," she said.

Business leaders have said that companies have few choices as long as the U.S. corporate tax rate remains the highest in the developed world, 35 percent."



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Your Last Minute Payrolls Preview: What Wall Street Expects (And Why It May Be Disappointed) | Zero Hedge

Your Last Minute Payrolls Preview: What Wall Street Expects (And Why It May Be Disappointed) | Zero Hedge: "Finally, courtesy of Bloomberg, this is how the market reacted to job reports in the past half year: of the last 6 employment reports, 5 most recent spurred selloffs, 1 previous triggered rally.

Feb. data released on March 4: NFP rose 242k vs 195k est.

10Y yield rose as much as 6.7bp to 1.900%, then retreated as U.S. equity futures failed to hold gains; closed higher by 4bp
SPX rose 0.33%
Jan. data released on Feb. 5; NFP rose 151k vs 190k est.

10Y yield rose as much as 5.5bp as report was viewed strong enough to keep alive possibility of another rate hike this year; closed lower by 0.4bp at 1.836% amid selloff in U.S. equities and oil
SPX fell 1.85%
Dec. data released on Jan. 8; NFP rose 292k vs 200k est.

10Y yield rose as much as 6.5bp to 2.211% and closed lower by 3bp at 2.116% amid declines in U.S. stocks and oil
SPX fell 1.08%
Nov. data released on Dec. 4; NFP rose 211k vs 200k est.

10Y yield rose as much as 4.3bp to 2.356% as report set stage for Dec. 16 Fed rate increase, then erased increase and fell 4.4bp amid oil plunge
SPX rose 2.05%
Oct. data released on Nov. 6; NFP rose 271k vs 185k est.

10Y yield rose as much as 11.5bp to 2.347% and closed near session high while 2Y yield touched highest since May 2010 as market priced in higher odds of Dec. rate hike
SPX fell 0.03%
Sept. data released on Oct. 2; NFP rose 142k vs 201k est.

10Y yield fell as much as 13.5bp to 1.902% and closed down by 4.3bp while 5Y yield fell as much as 19.5bp as market priced in a lower chance Fed would begin rate hikes this year
SPX rose 1.43%"



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Where The March Jobs Were: The Minimum Wage Deluge Continues | Zero Hedge

Where The March Jobs Were: The Minimum Wage Deluge Continues | Zero Hedge: "the three top categories of all job additions, were once again all minimum wages jobs.

Education and Health: 51K
Retail Trade: 48K
Leisure and Hospitality: 40K"



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Waiters And Bartenders Rise To Record, As Manufacturing Workers Drop Most Since 2009 | Zero Hedge

Waiters And Bartenders Rise To Record, As Manufacturing Workers Drop Most Since 2009 | Zero Hedge: "But not all is lost: as has been the case for virtually every month during the "recovery", virtually every laid off manufacturing worker could find a job as a waiter: in March, the workers in the "Food services and drinking places" category, aka waiters, bartenders and minimum wage line cooks, rose again to a new record high of 11,307,000 workers, an increase of 25K in the month, offsetting virtually all lost manufacturing jobs."



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Exposed - How Two Janet Yellen Phone Calls Saved The World | Zero Hedge

Exposed - How Two Janet Yellen Phone Calls Saved The World | Zero Hedge: "Thanks to the just released February diary of Fed chief Yellen, we now know exactly when she called Bank of England Governor (and former Goldman Sachs employee) Marc Carney and ECB President (and former Goldman Sachs employee) Mario Draghi.

Can you guess when?

The answer:"



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Why One Economist Doesn't Believe The March Jobs Number | Zero Hedge

Why One Economist Doesn't Believe The March Jobs Number | Zero Hedge: "Retail Was Strongest Factor +48K: Dubious Achievement Award

BLS sees a Retail Renaissance

Despite a lackluster holiday sales season and massive big box store closures, despite major 1Q hiring companies like Home Depot reporting flat hiring plans, the BLS model reports 181K payrolls added in 1Q 2016. 

To put that into context:

Best 1Q ever
Better than the entire annual Retail payroll growth for 2014; 2/3s the level of 2015
Fewer stores than ever, more big-box store closings, weak sales.  And yet, most hiring ever.  Hmmmmm....."



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"Godfather" Of Technical Analysis 'Nails' The Correction | Zero Hedge

"Godfather" Of Technical Analysis 'Nails' The Correction | Zero Hedge: "Two words - "nailed it!"

 

Of course, Mr. Acampora is not alone. Jim Cramer recently "nailed it" too..."



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