Business

Dow futures are down over 100 points from the cash close, testing the lows of the day following carnage in the Chinese currency markets. Despite the biggest drop in onshore Yuan since August devaluation, Offshore Yuan has collapsed to its lowest since September 2010. What is more worrisome (or positive for Kyle Bass) is that the spread between onshore and offshore Yuan has blown out to 1250 pips - a record - indicating dramatic outflows and/or expectations of further devaluation to come.

Yuan is in free-fall...

Everyone knows that at $35/barrel oil, virtually every US shale company is cash flow negative and is therefore burning through cash and other forms of liquidity such as bank revolvers and term loans, just as everyone knows that should oil remain at these prices, the US shale sector is facing an avalanche of defaults.

What is less known is who will be the next round of companies to default.

Submitted by Simon Black via SovereignMan.com,

Well, it happened again.

China’s stock market plunged, sending more than half a trillion dollars to money heaven.

What a surprise, it turns out that a massive credit bubble is actually unsustainable and will eventually burst. Shocker.

And just like what happened last year when Chinese stocks tanked, the government is stepping in to centrally plan the stock market recovery.

President Obama has signed an executive order on gun control that requires private individuals to obtain a Federal Firearms License before selling their gun.  The new gun control laws were rushed through by Obama who bypassed Congress in order to implement stricter rules following the recent San Bernardino shooting.

Authored by Nomi Prins, author of "All The Presidents' Bankers", via NomiPrins.com,