Tuesday, December 11, 2018

The Wild East: Airlines in South & Southeast Asia

by Wolf Richter, Wolf Street:

Huge aircraft orders, booming traffic, dozens of upstarts with easy mega-funding, fierce competition, already a big collapse, and allegations of shady business.

As of October 31, Airbus had 6,245 members of the A320neo family on order, of which around 250 had already been delivered. Even taking into account the large discounts which are the norm for large orders, the estimated value for this order book alone was in the region of about US$705 billion. Boeing had 4,783 members of the 737MAX family on order, with 241 already delivered, and an estimated order book value for this family of aircraft alone of US $526 billion.

Yield Curve Inversion & Recession Fears | Gary Christenson


from Silver Doctors:


Stock Market DROPS 550 Points! Deutsche Bank Hits RECORD LOW! FANG Stocks SELL OFF!


from The Money GPS:


Every Bubble Is In Search Of A Pin

by Chris Martenson, Peak Prosperity:

The ‘Everything Bubble’ has popped

Now that the world’s central banking cartel is taking a long-overdue pause from printing money and handing it to the wealthy elite, the collection of asset price bubbles nested within the Everything Bubble are starting to burst.

The cartel (especially the ECB and the Fed) is hoping it can gently deflate these bubbles it created, but that’s a fantasy. Bubbles always burst badly; it’s their nature to do so. Economic suffering and misery always accompany their termination.

It’s said that “every bubble is in search of a pin”. History certainly shows they always manage to find one.

Market Report: Gold up, stocks slide

by Alasdair Macleod, GoldMoney:

Gold and silver closed higher on the week in European trade this morning (Friday). Gold was up $18 at $1240.00, and silver up 35 cents at $14.51. The week saw very quiet trading in both contracts, partly due to US markets being closed on Wednesday for ex-President George Bush’s funeral.

The focus of financial markets has moved from the dollar to trade policies, and a growing feeling that the world will enter a recession in 2019. After a significant drop in the oil price since October, prices are moving sideways rather than recovering. In the last week, most base metal prices also eased, reflecting growing concerns over the economic outlook.

‘I Won’t Be Here When It Blows’

by Karl Denninger, Market Ticker:

So-cited the Daily Beast (which demands I let it run crazy-scam ads to view, so no linkey will be provided.)

The reference is to the debt at the federal level; Trump has been led to believe and has bought into the idea that “growth” can fix the problem.

He’s not only wrong those telling him this are lying.  You need only look at the last fiscal year — he got his “growth” but federal debt expanded at 6.2% of the economy, far beyond any rational target for GDP and also roughly double the actual realized GDP expansion.

Two exponentially-growing (that is, “x% per year” growth) things, where one exponent is larger than the other, will always blow up with the larger running away in a hockey-stick fashion.  This is trivially provable if you don’t believe it in seconds using Excel or Google’s Sheets.

Have Gold and Silver Hit a Turning Point? – With Silver Fortune

from Smaul gld:


Irish Central Bank Refuses To Discuss Gold Reserves In Bank of England Vaults

by Mark O’Byrne, GoldCore:

– As Brexit looms, the Central Bank of Ireland has refused to discuss the location and value of Irish gold reserves
– No date given for removal of “commercially sensitive” gold reserves from Bank of England vaults

– Bank of England vaults in London believed to hold almost €200 million of Irish gold
– Ireland’s financial system & economy is hugely exposed to a Brexit downturn

Ugly Week for Stocks: Bad Sign that Even the WSJ’s Mega-Effort to Reflate them Fizzled

by Wolf Richter, Wolf Street:

FANGMAN down 10.4% for the week, down $1.12 trillion from peak. Apple plunges.

This week was ugly for stocks in its own right, but it was particularly ugly because there was a major – and briefly very successful – effort by the Wall Street Journal to manipulate share prices higher. Tuesday was a bad day. Wednesday the stock market was closed. And Thursday just before noon, the Dow was already down over 700 points. It was time to pull out the big guns, namely the WSJ citing unnamed Fed “officials.”

Gold Flows into ETFs for Second Straight Month; Global Holdings Up on the Year

by Peter Schiff, Schiff Gold:

Gold holdings in gold-backed ETFs rose for the second straight month and turned positive for the year in November.

According to a report by the World Gold Council, 21.2 tons of gold, valued at about $804 million, flowed into ETFs last month. Total global holding rose to 2,365 tons. 

Global stock markets remained volatile, although they ultimately ended the month mixed. Oil performance was a key story as the commodity fell more than 22% on the month amidst supply concerns. The US 2/10 Treasury yield curve flattened to near-low prices on the year as investors became concerned that US economic conditions may have peaked and could be showing potential for a recession in either 2019 or 2020. Long-dollar hedged gold is now higher on the year, rallying over 6% in Q3 with the improving gold and US dollar pricing.”