The Tragicomedy Of Self-Defeating Monetary Policy
Submitted by Michael Lebowitz via 720Global.com,
“It’s self-defeating to use the wrong monetary policy.” -Ben Bernanke
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Some Canadians May Eat Themselves To Death Unless Oil Prices Rise, Doctor Warns
Late last month in “This Is Canada's Depression: Surging Crime, Soaring Suicides, Overwhelmed Food Banks ‘And The Worst Is Yet To Come,’” we took a sweeping look at what is truly pitiable situation in Alberta, the heart of the Canadian oil patch.
Roughly a third of provincial revenue is derived from “resources” which means that when oil prices collapsed, the territory plunged into recession. Oil and gas investment fell by more than a third in in 2015 and in its latest fiscal update, the government said it fully expects the weakness to carry into 2016.
China Carnage Continues: Despite Huge Liquidty Injection, Stocks & Currency Are Tumbling
Despite the biggest liquidity injection (CNY130bn) in 4 months, it appears Kyle Bass' top trade remains well on target as Offshore Yuan plunges, underperforming Onshore Yuan despite the largest Fix devaluation in two months. In a word - it's chaos in Chinese markets. The Shanghai Composite looks to be opening down 3% - extending yesterday's losses (beyond the US session's ADR's move). What a mess.
First: PBOC devalues the Yuan fix by the most in 2 months...
Chinese Trading Halted Amid Stock Markets Worst Start To The Year
Monday proved to be the worst-ever start to a year for China as stock markets plunged, triggering a trading halt in more than $7 trillion worth of equities, futures and options. Trading was halted at 1:34 p.m. local time after the CSI 300 index dropped to 7 percent. Bloomberg.com reports: An earlier 15-minute suspension at the 5 percent level failed to stop the retreat, with shares extending losses as soon as the market re-opened. Traders said the halts took effect as anticipated without any major technical problems.
For Kyle Bass This Is "The Greatest Investment Opportunity Right Now"
Over the weekend, when citing from an excerpt of the latest Wall Street Week episode, we revealed what to Kyle Bass was the "best investment for the next 3-5 years": the energy space. Bass added he was agnostic as to what subsector of energy one should invest in: whether it is infrastructure, pipelines, producers, upstream, downstream, he believes that there are places in the cap structure of each of these where once can put new capital and generate substantial returns.