US Federal Reserve

If you've ever watched Senator Elizabeth Warren grill a Fed chief on Capitol Hill you know that she's not one to mince words and she's not one that's easily impressed or intimidated. 

The darling of the liberal Democrats, Warren looms large over the 2016 race which many suspected she would run in. She didn't, but the Massachusetts Senator casts a long shadow and on Monday, she had apparently seen all she cared to see of GOP frontrunner Donald Trump. 

Submitted by Bill Bonner of Bonner & Partners (annotated by Acting-Man.com's Pater Tenebrarum),

Grotesque Mutants

Let’s see… U.S. corporate earnings have been going down for three quarters in a row. The median household income is lower than it was 10 years ago. And now JPMorgan Chase has increased its estimated risk of a recession to about one in three.

From the grotesque mutants collection

After last week's ridiculous FOMC announcement which forced even such "party line" commentators as Steve Liesman to ask Yellen if the Fed has lost all credibility after its dots tumbled despite surging core inflation and a mandate low unemployment rate, one can be forgiven if all they laugh at the latest Fed "forecast."

Last June, China’s stock market miracle ended in tears.

The SHCOMP’s inexorable, parabolic ascent was to a large degree facilitated by an explosion of margin debt, the likes of which could not be found in any other major market across the globe. For instance, by the end of June, the outstanding balance of margin transactions as a percentage of the SHCOMP’s free float market cap was nearly 14% compared to just 5.5% for the S&P and less than 1% for the TOPIX.

The sarcastic highlight of the overnight session was the Chinese stock market, where just one month after injecting a record amount of new loans into the financial system, the PBOC lamented the danger posed by China's tremendous debt load: "Lending as a share of GDP, especially corporate lending as a share of GDP, is too high" People’s Bank of China Governor Zhou Xiaochuan told China Development Forum yesterday.