Monthly Archives: January 2016

Shanghai Fund Manager Dumps All Holdings in ‘Insane’ Market

"'This is insane,' Chen Gang, chief investment officer at Shanghai Heqi Tongyi Asset Management Co., said in an interview on Thursday. 'We were forced to liquidate all our holdings this morning,' said Chen, whose firm manages about 300 million yuan ($45.5 million). Many private funds and hedge funds in China have agreements with investors spelling out mandatory liquidation levels if their holdings drop below a certain value. The CSRC capped the size of stakes that major investors are allowed to sell at 1 percent of a company’s shares for three months effective Jan. 9, the regulator said in a statement on Thursday. The restriction replaces an existing six-month ban that is due to expire Friday." Continue reading →

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Arizona Bill Would Set the Stage to Nullify Some Executive Orders and Supreme Court Opinions

PHOENIX, Ariz. (Jan. 7, 2016) – A bill prefiled in the Arizona House would set the stage for the state to refuse cooperation with any executive orders or Supreme Court opinions “not in pursuance of the Constitution,” nullifying such actions in effect. Rep. Mark Finchem (R-Tucson), along with seven other sponsors and cosponsors, introduced House…

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Virginia Bill Would Block Obamacare Enforcement

RICHMOND, Va. (Jan. 7, 2016) – A bill prefiled in the Virginia House would prohibit state cooperation or implementation for most of Obamacare, taking a huge step toward nullifying the federal health care program in practice within the state. Del. Brenda Pogge (R-Norge) prefiled House Bill 338 (HB338) on Jan. 5. The legislation would prohibit the state…

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Wyoming Bills would Ease State Marijuana Laws, Help Nullify Federal Prohibition

CHEYENNE, Wyo. (Jan. 7, 2016) – Two bills filed in the Wyoming House would significantly ease the state’s marijuana laws, taking a big step toward nullifying federal cannabis prohibition in practice in the state. Rep. James Byrd (D-Laramie) prefiled House Bill 3 (HB0003) on Dec. 17. The legislation would decriminalize possession of small amounts of…

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New Hampshire Proposal would Ban State Funding of Planned Parenthood

CONCORD, N.H. (Jan. 7, 2015) – A proposed amendment to the New Hampshire state constitution would effectively ban any state funding of Planned Parenthood, or any organization involved in abortion. This would take a small step toward effectively nullifying Roe v. Wade in the Live Free of Die State. A coalition of 17 legislators prefiled…

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Households lost from quantitative easing; gov’ts, big business won [2013]

"The big winners, to the tune of $1.6 trillion by the end of 2012, were the governments of the US, the UK and eurozone, from the reduced costs of servicing their debts and from the increased profits made by the their respective central banks (who magically create money to buy government debts which pay them interest). McKinsey believes that households have been significant losers from cheap money. How much have they lost? Well McKinsey says that from 2007 to 2012, the cumulative net loss of interest income for American households was $360bn, compared with a cumulative net loss of $160bn for eurozone citizens and $110bn (£70bn) for British people." Continue reading →

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Societé General Strategist: Yellen’s Dithering Fed Is Destined for Infamy

"The Federal Reserve’s failure to recognize its role in driving the third dangerous asset bubble in 15 years will destroy the central bank’s reputation for good, said Albert Edwards, global strategist at Societe Generale. Edwards said it’s too late to avoid another massive collapse in asset prices. 'This time the Fed’s largesse has fueled another corporate debt explosion,' he said. 'The real rate of corporate borrowing is even greater than was seen during the late 1990s tech bubble. This is 100 percent attributable to the Fed’s excessively loose monetary policy.'" Continue reading →

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‘Big Short’ Genius Thinks Another Financial Crisis Is Looming

"Well, we are right back at it: trying to stimulate growth through easy money. It hasn’t worked, but it’s the only tool the Fed’s got. Meanwhile, the Fed’s policies widen the wealth gap, which feeds political extremism, forcing gridlock in Washington. It seems the world is headed toward negative real interest rates on a global scale. This is toxic. Interest rates are used to price risk, and so in the current environment, the risk-pricing mechanism is broken. That is not healthy for an economy. We are building up terrific stresses in the system, and any fault lines there will certainly harm the outlook." Continue reading →

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China halts stock market again after CSI 300 plunges more than 7%

"China's stocks were suspended from all trade on Thursday after theCSI300 tumbled more than 7 percent in early trade, triggering the market's circuit breaker for a second time this week. That drop-kicked stock markets across Asia, which were already wallowing after a weaker open amid concerns over China's swooning currency and economic slowdown as well as falling oil prices. China's securities regulator also issued new rules to restrict the percentage of shares major shareholders in listed companies can sell every three months, in an attempt to stabilize markets. Shareholders are not allowed to sell more than 1 percent of a company's share in that period." Continue reading →

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Virginia Senate Bill Would Curb “Policing for Profit” via Asset Forfeiture, But Federal Loophole Remains

RICHMOND, Va. (Jan. 6, 2016) – A bill filed in the Virginia Senate for the 2016 legislative session would reform the state’s asset forfeiture laws, making it more difficult for police to seize property. But a loophole in the legislation would allow law enforcement to work with the feds to skirt the more stringent state law. Sen.…

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