Margin Debt Soars To New Record; Investor Net Worth Hits Record Low

The correlation between stock prices and margin debt continues to rise (to new records of exuberant "Fed's got our backs" hope) as NYSE member margin balances surge to new record highs. Relative to the NYSE Composite, this is the most &qu… [...]

Germany Doesn’t the Fed… Why Should We?

  Since the Financial Crisis erupted in 2007, the US Federal Reserve has engaged in dozens of interventions/ bailouts to try and prop up the financial system. Now, I realize that everyone knows the Fed is “printing money.” However, whe… [...]

DOJ Announces $13 Billion "Largest Ever" Settlement With JP Morgan

To the DOJ, a $13 billion receipt is the “largest ever settlement with a single entity.” To #AskJPM, a $13 billion outlay is a 100%+ IRR. And perhaps more relevant, let’s recall that JPM holds $550 billion in Fed excess reserves, on which it is paid 0…. [...]

Why Has Nobody Gone To Jail For The Financial Crisis? Judge Rakoff Says: "Blame The Government"

By US District Judge Jed S. Rakoff (pdf) Why Have No High Level Executives Been Prosecuted In Connection With The Financial Crisis? Five years have passed since the onset of what is sometimes called the Great Recession. While the economy has slowly imp… [...]

Because Of The Fed "Mortgage Market Liquidity Is As Bad As When Bear Stearns Failed"

Remember the main reason why the Fed should have tapered, namely the illiquidity in the bond market it is creating with its feverish pace of collateral extraction, and conversion of quality collateral into 500x fwd P/E dot com dot two stocks? Here to p… [...]

Bart Chilton Jumps CFTC Ship

On the day when the CFTC begins considering ‘speculative position limits’, believed to be “the signal rule of [his] tenure at the Commission,” Bart Chilton has had enough. Having “left traders in their own” during the shutdown, Chilton expressed “excit… [...]

John Taylor Explains Why Economic Failure Causes Political Polarization

Authored by John Taylor, originally posted at, It is a common view that the shutdown, the debt-limit debacle and the repeated failure to enact entitlement and pro-growth tax reform reflect increased political polarization. I believe this gets t… [...]

The New Normal?

Submitted by Jim Quinn of The Burning platform The New Normal? Our government and financial “leaders” tell us that things are back to normal and we are well on our way to economic recovery. They report rising GDP, declining unemployment, and record… [...]

JPMorgan Settles With FHFA For $5.1 Billion

It’s Friday afternoon, do you know where your fortress-balance-sheet bank’s massive settlement deal with the government is… *JPMORGAN TO PAY $5.1 BILLION OVER FHFA MORTGAGE CLAIMS *FHFA SAYS JPM TO PAY ABOUT $2.74B TO FREDDIE, $1.26B TO FANNIE *JPMO… [...]

Frontrunning: October 22

Despite budget win, Obama has weak hand with Congress (Reuters) Carney Brings In McKinsey for Bank of England Strategy Rethink (BBG) Bill Gates Buys Stake in Spanish Construction Company FCC (WSJ) Jerusalem Mayor Barkat Seeks New Term in Race Arabs Si… [...]