Europe

The ECB's "whatever it takes" ponzi strategy of keeping the dream alive in Europe's financial system has finally been caught as rapid collapse in the banking system is contagiously spreading to peripheral sovereigns once again. Portugal risk spreads are up 120bps in the last 3 weeks and Spain and Italy are soaring over 35 and 50bps respectively as the almost self-dealing nature of banks buying "risk-free" EU bonds and repoing for cash via The ECB comes home to roost...

Germany may be careening towards a head on-collision when it comes to Europe’s worsening migrant crisis, but tragically, the country had a very real fatal train wreck on Tuesday when two commuter trains crashed near Bad Aibling, in Bavaria.

Just before 7 a.m. two regional trains collided on a rail line which Bloomberg notes "is commonly used by commuters heading to work in Munich, and would normally also carry children traveling to school."

With China offline for the rest of the week, global markets have found a new Asian bogeyman in the face of Japan which as reported last night saw its markets crash, and the Yen soar, showing that less than 2 weeks after the BOJ unveiled NIRP, yet another central bank has lost control.

Late last month, in what amounted to a tacit admission that nothing is working when it comes to pulling Japan out of its decades’ long stint in the deflationary doldrums, the BoJ adopted negative rates.

As we detailed previously, back on September 11, Zero Hedge predicted the events which unfolded in Paris last Friday (and the resulting aftermath) with uncanny accuracy. Specifically, we said that