Business

Early this morning, we discussed the unexpected tumble in the Chinese small-cap stock index, the ChiNext, will plunged by over 5%...

... as a result of growing concerns that a new round of deleveraging is about to be imposed by Beijing following the conclusion of China’s 5th National Financial Work Conference (NFWC), which was attended by president Xi Jinping, and set the agenda for critical financial reforms over the coming years. As the People's Daily noted on Monday:

In the years after its 2009 bankruptcy, Chrysler looked for a dedicated lender to help customers "finance their cars quickly"...which was code for a lender who could help the struggling OEM expand their market share by making extremely risky loans to subprime borrowers all while laying off the credit risk to unsuspecting pension funds.  As such, Chrysler ultimately picked Santander due to its expertise in “automated decisioning”...which was code for the ability to advance credit without actually performing income verification tests on borrowers.

Authored by Mike Shedlock via MishTalk.com,

Since 2010, the highest year-over-year wage increase in any month for production and nonsupervisory employees is near 2.6%.

For a two-year stretch between summer of 2011 and summer of 2013 wage increases less than 2% were the norm.

Yet, firms complain about labor costs while simultaneously complaining about the lack of workers. 

Bloomberg reports Firms Under Pressure as Labor Drought Grows, U.S. Survey Shows.

It was bound to happen: after hundreds of millions of capital was raised through "Initial Coin Offerings", with the recently concluded Tezos coin offering raising a record $232 million in 2 weeks, it was inevitable that (at least) one would get hacked. On Monday morning, that's precisely what happened to CoinDash, a blockchain startup focusing on "cryptocurrency social trading and portfolio management platforms", which sent out an urgent warning to investors advising of a severe cyber security breach of its crowdfunding page.

With the 24/7 pump from mainstream media that everything is awesome (look at record high stocks) - despite President Trump - it's all too easy to ignore collapsing 'hard' data, geopolitical turmoil, and the looming reality that the world's central bankers are taking a distinctly hawkish turn. However, as former fund manager Richard Breslow notes, overnight we just got a big reminder that butterflies' wings are flapping around the world, and no one knows when the chaotic hurricane will follow...

Via Bloomberg,