October 5: Daily Contrarian Reads

The Market’s Moment of Blissful Delusion

The present moment of blissful delusion is remarkable to witness. Take it in. A few words and updated charts will do……..

“The End Of The QE Trade”: Why Bank of America Expects An Imminent Market Correction

……But if Hartnett’s “Icarus” is here, then the just as popular “Humpty Dumpty” must be set to follow, and sure enough Hartnett goes back to square one, and his contention that since there is “nothing to be bearish about”, it’s time to take profits. Below are the various reasons why the BofA strategist expects the long-overdue market top is just around the corner.

Ron Paul On Washington’s Six Year War On Syria—–For What?

Now that the defeat of ISIS in Syria appears imminent, with the Syrian army clearing out some of the last ISIS strongholds in the east, Washington’s interventionists are searching for new excuses to maintain the illegal US military presence in the country. Their original rationale for intervention has long been exposed as another lie.

Mind The Repo—-Surging “Fails” Are Not Good News

The Federal Reserve Bank of NY reported on Friday that repo fails for the week of September 20 were $359 billion (combined “to receive” plus “to deliver”). That’s the second highest weekly total of this year, following $435 billion fails recorded just two weeks earlier. The week in between those two was also high, tallying $325 billion. That makes for three consecutive weeks of unusually high repo fails. While most of the repo market operates in hidden spaces without much notice, one thing we can always depend upon is the correlation of repo fails with collateral problems.

How Did Things Get So Bad In Catalonia?

Unless concrete measures are taken to calm tensions between Madrid and Catalonia, one of Spain’s richest, safest and most visited regions could soon be plunged into chaos. With neither side willing for now to take even a small step back from the brink, the hopes of any kind of negotiated settlement being reached are virtually nil, especially with the European Commission refusing to mediate.

Searching The Globe For Monsters To Destroy—-The Folly of Imperial Washington’s Rebuke To John Quincy Adams

….”Wherever the standard of freedom and independence has been or shall be unfurled, there will her heart, her benedictions and her prayers be. But she goes not abroad in search of monsters to destroy. She is the well-wisher to the freedom and independence of all. She is the champion and vindicator only of her own. She will recommend the general cause, by the countenance of her voice, and the benignant sympathy of her example…..”

Next Fed Chairman:  Fed Has Become A Slave To S&P 500

Kevin Warsh, the favorite to be the next chairman of the U.S. Federal Reserve, apparently believes the central bank has become a servant to the stock market after years of loose monetary policy. Uber-bear Albert Edwards, an economist at Societe Generale’s strategy team, said Monday that after listening to Warsh speak at a banking conference last week, he would be his choice to lead the Fed. He also revealed Warsh felt the Fed had been captured by the “secular stagnation” ideas of former U.S. Treasury Secretary Larry Summers and had become persuaded by the idea that more monetary stimulus is needed.

Catalonia: The People Rise Against A Globalist Central State

At a time when supra-national bureaucracies and globalist initiatives are being foisted on ordinary people, the Catalan people are rising up and taking their destiny into their own hands. While the elites are pushing an agenda of centralization, and concentrated power, the worldwide trend is actually going in the opposite direction, toward decentralization and self-determination. Repression won’t stop it: bullets won’t end it. Indeed, as the Spanish authorities are discovering to their dismay, sending in the troops is far more likely to backfire than to quell the rebellion.

What Recovery? The Construction Spending Example

Construction spending rose slightly in August after two months of serious declines. At a seasonally-adjusted annual rate of $1.22 trillion, that’s slightly less than the estimate for November 2016 when “reflation” (sentiment) was at its apex. It’s a pattern that we see repeated throughout the economic accounts; some growth in the second half of last year but then instead of acceleration as “reflation” might imply more weakness that is quite often severe to the point of (slight) contraction.

This Week’s Crackpot Award Goes To Senator Lankford—-Says Russians Behind The NFL Kneeling Outbreak!

The Post cited Oklahoma Senator James Lankford, a toothy, humorless, young Republican who looks like an escapee from a teen zombie movie. Lankford shocked the world this week by revealing that “Russian Internet trolls” were stoking the NFL kneeling debate……Conservative outlets like Breitbart and Newsmax and Fox played up the “Russians stoked the kneeling controversy” angle because it was in their interest to suggest that domestic support for kneeling protests is less than what it appears. Meanwhile, outlets like the Post, CBS, Salon, and TPM bit on the story among other things because it furthered a longstanding narrative about Russian interference.