Business

With Chinese equities tumbling in the face of PBOC's liquidity withdrawal (record spike in o/n HIBOR) and short-squeeze of CNH shorts (and carry traders), the sell-side is as confused as a CNBC anhcor at what is good and what is bad. UBS urges investors not to sell while JPM fears a structured-product-driven vicious cycle between EM and Chinese equities. Following a record-breaking surge in offshore Yuan against the USD (12 handles top to bottom) during the US session, selling has resumed into the fix.

Authored by Senator Rand Paul and Mark Spitznagel, originally posted at Time.com,

The country deserves to understand the extent of its balance sheet

On Jan. 12, Congress is scheduled to vote on the “Audit the Fed” legislation (H.R. 24/S. 264), which, if passed, would bring to an end to the Federal Reserve’s unchecked—and even arguably unconstitutional—power in the financial markets and the economy.

On Friday we presented Kyle Bass' latest interview in which the Texas hedge fund manager explained the reasoning why he thought shorting the Yuan is the "greatest investment opportunity right now." The crux behind the argument was well-known to Zero Hedge readers, namely China's peaking credit cycle driven by soaring bad, or non-performing, loans which have so far been swept away, but which courtesy of a $35 trillion financial system are nothing short of a "neutron bomb", as we first dubbed the embedded risk, waiting to go off. Here is Bass:

Via GEFIRA,

World oil consumption is more than 90 million barrels a day. Between 2009 and 2014 oil was traded for about 110 dollars a barrel; now oil is changing hands for 32 dollars a barrel. Roughly a 7-billion-dollar cash flow a day is vanishing from the global market.

Norway’s sovereign wealth fund that has accumulated a stake of 4.5 billion dollars in Apple over the past years, will turn from an Apple buyer into an Apple seller.

It's not the economy (or fundamentals), stupid - It's The Fed!

So we had a rate-hike, and...surprise - markets puked

Source: NorthmanTrader.com

Still think anything other than The Fed matters?

The S&P 500 has just caught back down almost perfectly to The Fed's balance-sheet-implied level...