iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
16,220 Blog Posts

Mika Brzezinski: There Are ‘Literally’ No Real Men in the White House Who Can Stop Trump

Ever since the election season began, the left has been going ‘literally’ apeshit over Trump’s usage of Twitter. In recent month’s they’ve been autistically screeching over it — demanding that Jack Dorsey, CEO of Twitter, ban him. They’ve trotted out GOP deep state shills, neocons, professors, think tankfags — all trying to dissuade the President from using a platform that communicates directly to the people.

The main stream media, feeling threatened by the President cutting them out from the middle man position, have been pursuing a scorched earth strategy — attempting to remove him from the White House, while also reminding him that ‘voters’ hate his fucking twitter account.

Today, Mika Brzezinski called out the men inside the White House for failing to stop the President from using his Twitter account.

Main stream media has been constant with their opeds, some even trying to accuse the President’s use of the social media platform as ‘unconstitutional.’ Here are just as handle of titles by those livid with the President.

If Trump is such a dunce for tweeting and is hurting himself politically, why the fuck do the leftards care? If anything, they should be elated by it — since it only serves to hurt him, as they so readily like to say. Another theory is they’re control freaks who chimp out at the idea that Trump crushed Hillary Clinton, whilst spending 1/3rd of her campaign budget on traditional media, catching waves and having fun —  memeing all day like a boss on Twitter — shitposting his way into the oval office.

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TERROR ATTACK REPORTED IN BRUSSELS; MARKETS DIVE

Both retail and basic resources got lit up, weak throughout the day, only accentuated after reports out of Brussels that some lad ran about a train station screaming ‘allah akbar’, detonating himself in the process.

Markets were heavy from the morning, accelerating declines towards the end of the day — applying a brutal sort of punishment to sectors already in bear market territory. We are truly in a Tale of Two Cities market, where the best performers keep trucking ahead, making news highs, amidst turbulence and tumult in retail and oil and gas names.


Data courtesy of Exodus.

On a separate note, Prodigy from Mobb Deep died today, apparently from sickle cell anemia. I actually read his biography many years ago and was delighted by his sordid tales, regarding the inane NYC rap scene. As a teenager, not knowing what good music was, he was quite popular in Brooklyn and around NYC.

RIP

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Illinois Governor Warns His State is Entering ‘Banana Republic’ Territory, Not Even the Lottery is Safe

Illinois, buoyed by its crown jewel and murder capital of the United States, Chicago, is heading towards financial ruin — castigated the once proud state into ‘banana republic’ status, as described by Governor Bruce Rauner (R).

Court ordered payments, unpaid bills amounting to billions, has the state scrambling for cash. Current estimates predict 100% of the state’s monthly revenue will be energetically devoured — causing Rauner to call a special session with the democratically led assembly to pass a budget for the first time in three years.

If the budget fails, and God willing it shall, Illinois will lose their lottery.

(Sausagefags eternally beat down)

Source: Fox

The state lotto requires a payment from the legislature each year. The current appropriation expires June 30, meaning no authority to pay prizes. In anticipation of a budget deadlock, the state already is planning to halt Powerball and Mega Millions sales.

“It is disappointing that the legislature’s inability to pass a budget has led to this development and will result in Illinois lottery players being denied the opportunity to play these popular games,” Illinois Lottery Acting Director Greg Smith told Fox News.

“We’re like a banana republic,” Rauner said earlier this month, after the General Assembly failed, yet again, to pass a budget package by the regular session deadline. “We can’t manage our money.”

Due to the utter incompetence by Illinois legislators, Moody’s recently downgraded their credit rating to the lowest of any state in the union. One of the more notable red flags is the state’s $130 billion unfunded pension obligations. When they say ‘unfunded’, what they really mean is they spent all of the money employees set aside for their retirement — wasting it on pet projects, a grotesque display of debauchery all too familiar with America’s maturing form of crony capitalism.

Additionally, upwards of $13 billion in bills are in arrears.

“Nobody here in Illinois is considering bankruptcy—first of all, it’s not allowed,” said Steve Brown, press secretary for Illinois House Speaker Michael Madigan. “Second of all, it would damage the reputation of the state and it’s just not necessary.”

U.S. Sens. Dick Durbin and Tammy Duckworth, both Democrats from Illinois, declined to respond to Fox News’ request for comment on whether they would consider getting involved in introducing a measure allowing state bankruptcy.

“Illinois is the fiscal model of what not to do,” Rep. Peter Roskam, R-Ill., told Fox News, while not commenting on the bankruptcy question. “This avoidance in behavior toward dealing with our challenges is what leads to the devastating impacts we are seeing today.”

Just last week, the Illinois comptroller, who is responsible for paying the state’s bills, warned the office would be paying out 100 percent of Illinois’ monthly revenue, leaving negative funds for “discretionary spending. ”

But Rauner claims the Republicans have a new plan that could remedy the state’s crippling financial situation.

“Republicans in the General Assembly have laid out a compromise budget that I can sign,” Rauner said, calling it a “true compromise.”

 

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U.S. Shoots Down Iranian Drone Over Syria

The more pertinent question is, since when did Iran have a drone program? Ah, that dates back to 2011, when President Obama literally gave Iran U.S. drone technology, during the RQ 170 incident. I know, you think I’m making this up. Why would Obama do anything at all for the Persians, stemming from giving them drone technology to removing sanctions, to paying them billions for the release of US hostages? You’d have to ask him.

But I do know this.

Source: Wikipedia:

On 12 December 2011, U.S. administration asked Iran to return the captured U.S. drone.[27] The day before, on 11 December, General Salami stated that “no nation welcomes other countries’ spy drones in its territory, and no one sends back the spying equipment and its information back to the country of origin.”[28] On 13 December 2011, Defence Minister of Iran, dismissed the request and said “Instead of apologising to the Iranian nation, it is brazenly asking for the drone back.” And the ministry spokesman, Mehmanparast, stated that “it seems he [Obama] has forgotten that Iran’s airspace was violated, spying operations were undertaken, international laws were violated and that Iran’s internal affairs were interfered with. … Instead of an official apology and admitting to this violation, they are making this request.”[29]

Former U.S. Vice President Dick Cheney criticised Obama’s decisions on the drone, saying that, after the aircraft went down, the president should have ordered an air strike within Iran: “The right response to that would have been to go in immediately after it had gone down and destroy it. You can do that from the air … and, in effect, make it impossible for them to benefit from having captured that drone.” Instead, “he asked nicely for them to return it, and they aren’t going to”.[30]

On 17 January 2012, an Iranian company said it would send miniature, pink, toy versions of the captured drone to President Obama as a response to the request for sending the drone back.

Shortly thereafter, Iran announced it has reverse engineered it.

On 10 December 2011, Iran announced that it intended to carry out reverse engineering on the captured RQ-170 Sentinel stealth aircraft.[6] In April 2012, the Army of the Guardians of the Islamic Revolution claimed to have succeeded in extracting the entirety of the data collected by the drone and are currently in the process of building a replica of the aircraft.[33] Iran claimed to have been approached by countries, including China and Russia, seeking information on the drone.[34] Although U.S. officials expressed concern over the possibility of China or Russia receiving the drone’s technology, they cast doubt on whether Iran could replicate the technology of the aircraft, as well as the amount of intelligence data available, due to the precautions installed for malfunctioning drones.[35] On May 2014, Iranian state TV displayed what was claimed to be a reverse engineered RQ-170. Sources familiar with the RQ-170’s design say that the Iranian RQ-170 is merely a static mock-up rather than a flyable aircraft.[36] In November 2014 Iran claimed to have carried out a successful test flight of an aircraft based on reverse engineering of the RQ-170.

Isn’t that heartwarming?

Fast forward to today, the United States shot down an Iranian drone over the Syria — the second drone this month.

The Iranian Shaheed 129 drone looks very similar to the MQ-1 Predator Drone made by General Atomics, who sells these armed UCAVs to UAE and Turkey.

MQ1


Iran’s Shaheed 129

The armed pro-regime Shaheed-129 UAV was shot down by a U.S. F-15E Strike Eagle about 12:30 a.m. after it displayed hostile intent and advanced on Coalition forces. This is the second the U.S. shot down an Iranian drone in less than a month.

The coalition forces were manning an established combat outpost to the northeast of At Tanf where they are training and advising partner ground forces in the fight against ISIS. This is the same location where another pro-regime UAV dropped munitions near Coalition forces before it was shot down on June 8.

The F-15E intercepted the armed UAV after it was observed advancing on the coalition position. The armed UAV was shot down when it continued to advance on the coalition’s position without diverting its course.

While the country obsesses over Russian phantoms, the DOD is in the process of expanding an illegal war in Syria — furthering a neocon strategy that has wreaked havoc upon America’s balance sheet for the past 30 years.

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So What’s Up with Steve Mnuchin’s Sunglasses?

Whenever I see this guy talk, he has those stupid fucking sunglasses on. He wears them inside too.

Look.

All I hear from this guy is how awesome the tax cuts are going to be and how Trump is unlocking liquidity and how long Jeff Bezos dick is. Yet, at the end of the day, Steve is all sunglasses, no vision. Where the fuck are my tax cuts Steve? Why don’t you take the shades off and get serious about making America great again?

Here’s Steve being a pussy about the Fed, not wanting to commit to firing Grandma Yellen.

This guy is just ridiculous, former Goldman guy turned Hollywood weirdo, now Treasury Secretary with a penchant for making terse statements — all the while wearing fucking sunglasses indoors.

We’re doomed.

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If the Economy is So Great, Then Why Are Treasuries at Year to Date Highs?

Just to play Devil’s advocate here, in light of my previous CAT post. We see the markets are record highs. The Fed menacing us with higher rates. Employment, seemingly, full. Yet, here we are with 10yr yields at 2.17%. How in the fuck are all these things happening at the same time?

Robust economic activity, while deflationary pressures mount, as evidenced by bond yields?

I have 10% of my assets in TLT, aka “The Ark”, and it looks like it wants higher.

In the past, economic activity guided yields. In a post apocalyptic world (2008), central banks control yields and cast a perversion upon traditional economic theories. That’s my take on it.

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Bears, Get in Here and Explain This Data: $CAT is Crushing It

As much as I would like the world to burn, it just isn’t ready to happen. The early 2016 scare, emanating from China, is over. We see that in the share prices of Macau based casinos. And we are seeing strong economic data released on a monthly basis in China.

Caterpillar just released their retail data for May vs April and it’s indicating extreme optimism and a fuckload of sales.

Caterpillar reports May 2017 retail data; total machines worldwide +8% vs +1% in April of 2017
Total Machines (May 2017 vs April 2017)

Asia Pacific +49% versus +47%
EAME: -6% vs -10%
Latin America: -15% vs -30%
North America: +2% vs -7%
World: +8% vs +1%
Total Energy & Transportation (May 2017 vs April 2017)

Power Gen -10% vs -2%
Industrial +4% vs -11%
Transportation +9% vs -3%
Oil and gas +13% vs +4%
Total +4% vs -2%

Industrials are on the rise, perhaps somewhat stymied by recent weakness in crude. Nevertheless, CAT is higher by 41% over the past year, in spite of declining revenues and earnings. But the stock was likely reflecting the turn we’re about to see now. Funny how the market knows, well in advance, when an economic tailwind is coming.

The bigger story here isn’t to shill for CAT, but instead highlight the fact that industrial activity is quickening.

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Oil Traders Suffer the Pangs of Hell, As WTI Sports a $43 Handle

Crude is getting crushed early going, off by more than 2%. I never believe what the headlines say when it comes to crude. I like to believe the commodity is used as an economic weapon to hurt others. Recent weakness in the commodity is linked to an upsurge in Libyan production, and of course shalefags on the US drilling like maniacs.

Crude stockpiles remain 100 million strong. The fact of the matter is, crude is in a danger zone now of slipping back into the $30s. If it does that, I think we’ll start to hear about wells getting shut in and smaller companies in danger of failing on their debt covenants.

Here is what Bloomberg is citing as notable in the crude space this morning.

Libya is pumping about 900,000 barrels a day, according to a person with direct knowledge of the matter, who asked not to be identified for lack of authority to speak to the media.

There were 5,946 drilled-but-uncompleted wells in U.S. oilfields at the end of May, the most in at least three years, according to EIA estimates.

Pierre Andurand’s oil hedge fund lost 17.3 percent in the year through May as one of the world’s most prominent energy bulls suffered in the wake of last month’s OPEC meeting, according to a document outlining the fund’s performance.

Bottom line: the sector is down 37% for the year. The notion that inflation is back is dead. We are raising rates in a deflationary environment. It’s only a matter of time before this all catches up to markets — currently in a haze, enjoying the low VIX environment.

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Democrats Hold the Senate Floor to Protest Trumpcare; But It’s All a Farce

I know Trumpfags will get upset with me over this issue — but Trumpcare is complete horseshit. It’s a different sort of horseshit than Obamacare — which was, essentially, free healthcare for homeless people — fucking everyone else. Trumpcare merely punts the homeless people into graveyards, whilst screwing everyone else.

How do I know this, without reading the gagillion pages in the healthcare bill?

The god damned healthcare stocks are higher.

Here are the YTD gains for some of the more prominent healthcare names.

CNC+39%, ANTM +34%, WCG +28%, MOH +28%, CI +27%, HCA +14%.

The list goes on and on.

I understand the vast majority of expenses emanates from real estate expenses. Pharamafags like to explain how the price of drugs is a transitory, almost meaningless, line item.

Go fuck yourselves.

Everything should be slashed. The healthcare lobbyists in DC should be rounded up and guillotined for ‘crimes against the people.’ The whole industry is one giant corrupt fuckery, designed to milk the dying baby boomers to maximum levels or carnivorous crony capitalism. Do not tell me that I should pay $2k per mo for a family plan, because MUH American exceptionalism produces great healthcare. What use is the healthcare if you don’t have access to it?

Both parties are complicit in perfidious fleecing of the middle class, through unbelievable corruption in healthcare.

Ever spend a weekend in the hospital? I once had to have a procedure done and was in between insurance plans — sticking me with a bill that amounted to tens of thousands. I had the money to pay it, but instead opted to tell them to ‘literally’ fuck themselves.

I will not be a party to ingratiating criminals who prey upon the weak and the poor to build monuments for themselves.

The only time that I can recall healthcare stocks getting drilled was when Bill Clinton proposed reform, which was defeated, helped by that fucking bastard BILL KRISTOL. With the benefit of hindsight, the Bill Clinton aka Hillary Clinton reform of 1993 was probably a good thing for ordinary folk. I recall seeing those stocks plunge lower on a daily basis, in an unbelievable manner. I was an intern at Seligman at the time and those greedy bastards were smartly buying the dip in those beaten down healthcare names. The carnage was truly palpable.

There is no such thing as win-win in the healthcare industry, for both consumer and provider. Someone has to lose; and as far as I am concerned, we’ve been on the losing end of the see-saw for the better part of forever.

Schumer ‘holding the floor’ tonight, in protest of the GOP bill. Like it fucking matters.

 

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Will the Amazon Hegemony Render the Minivan Extinct?

In spite of having 3 kids, I never succumbed to the pressures of buying a minivan. Often times, while on vacation, I rented them — but I never took the plunge into buying its convenience because of my ardent belief that they were for faggots.

I’ve always purchased large SUVs, eight-seaters, in order to ferry my children to and fro. In NYC, about 30% of residents do not drive — due to lack of parking spots and convenience of the big city rat’s nest.

But with the Amazon-Whole Foods deal, some are beginning to wonder what it might mean for the auto space, specifically the minivan. About 40% of people use their cars, primarily for shopping for food. What will the future look like, once autonomous cars and Amazon drones take over the grocery space.

It probably won’t eliminate the need for minivans and other large vehicles; but at the margins, it will certainly have an effect.

Interestingly, on the day Amazon announced it was acquiring Whole Foods, the auto dealership space was the worst performer. Large vehicles are the highest margins on the lots.

If Jeff Bezos ends up rendering the minivan extinct, it may very well end up being his best accomplishment ever.

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