bank

Authored by Chris Whalen via The Institutional Risk Analyst,

"It is not down in any map; true places never are."

 

"Moby Dick"

Herman Melville

News reports that prosecutors have dropped their case against Bruno Iksil, the former JPMorgan (NYSE:JPM) trader many know as the “London Whale,” comes as no surprise to readers of The IRA.  Iksil, who resurfaced earlier this year, has been living in relative seclusion in France for the past few years.

When one strips away the lies about central banks' "inflation and employment" mandates and focuses on what they really do - which is to keep asset prices artificially supported and volatility suppressed - the motive behind virtually every central bank act becomes readily apparent: preserve (and increase, if possible) confidence in the market and economy, while saying anything and everything that helps achieve this, or in other words, lie but don't get caught.

Is the recent streak of record low volatility about to end?

While countless analysts, pundits and traders have previously talked their book (if not staked their reputation) on claims VIX is set for an imminent mean-reverting spike, so far that has not happened and in fact net spec positioning in the VIX just hit a record short print as of the latest CFTC week.

The following article by David Haggith is from The Great Recession Blog: 

• HSBC, miners lift European shares as dollar holds near lows (Reuters)
• Republicans Face Tough Choice: Repeal Obamacare or Cut Taxes (BBG)
• Trump’s Decisions Deepen Divide Among Republicans (WSJ)
• Koch Brothers Move to Back White House’s Tax-Cut Plan (BBG)
• Maduro Waits for U.S. Response After Violent Venezuela Vote (BBG)
• OPEC Has a Crippling Problem: Its Members Can’t Stop Pumping (WSJ)
• Catalan Separatist Chief Is Ready to Go to Jail (BBG)