Markets Continue to Collapse, DOW Freefalls 1,300 Points Over Depressing Manufacturing Data
The Dow plunged 490 points by the close of markets on Wednesday, and the Nasdaq and S&P500 also saw their steepest declines since the end of August, closing down 1.6 percent and 1.8 percent, respectively. All three indexes saw an ominous start to the quarter, while both the Dow and the S&P500 saw their worst start since the beginning of the 2008 recession. Also: (Dahboo77) – Whats Going On With Elon Musk and The Head of NASA?
The night before Elon Musk revealed the latest plans for his next-generation Starship, NASA administrator Jim Bridenstine set out to rain on the rocket-maker’s parade with a tweet. “I am looking forward to the SpaceX announcement tomorrow,” the former Oklahoma congressman wrote on Sept. 27. “In the meantime, Commercial Crew is years behind schedule. Also: (Dahboo77) – ‘Retail Apocalypse Continues’: Forever 21 Files For Bankruptcy, 30,000 Jobs At Risk
Following reports earlier this month that a bankruptcy for the fast-fashion pioneer was imminent, Forever 21 filed for Chapter 11 protection in Delaware Sunday night, becoming the latest brick-and-mortar retailer to succumb to the Amazon-driven ‘retail apocalypse’, Bloomberg reports. In addition to the competition from e-commerce retailers, BBG said Forever 21 struggled with high rents and heavy competition from other fast-fashion rivals (like H&M and Zara).
Court papers show Forever 21 has estimated liabilities (on a consolidated basis) of between $1 billion and $10 billion. Thanks to Chapter 11 protection, Forever 21 will continue operating as it works out a plan to pay back all of its creditors. Also: (Dahboo77) – Is The US Dollar Fading As The World’s Dominant Currency?
Prasad digs into the data about the share of US dollar holdings in foreign exchange reserves of central banks. The IMF collects this data. In the last few years, the US dollar share of “allocated” foreign reserves has fallen from 66% to 62%, which seems like a relatively big drop in a short time–depending on what that word “allocated” means. Also: (Dahboo77) – US Troops Tanks Headed to Lithuania for “Extended Mission” Meant to Deter Russia
Lithuania’s Defense Ministry has announced a new deployment of US troops to their country. The deployment will include a number of US soldiers, tanks, and fighting vehicles, and will be an “extended mission.” Also: (Dahboo77) – There’s No End In Sight For The “Retail Apocalypse”
The massive wave of store closures and layoffs in the retail sector has gotten so bad this year, it’s been dubbed the “retail apocalypse.” Also: (Dahboo77) – Ultra Rich Prepare for Economic Storm
We have described, in the last several days, a fascinating trend that is developing: the dash for cash ahead of the next market crash. The Bank for International Settlements (BIS) warned over the weekend about an imminent financial crisis, while it was reported on Monday that billionaire hedge fund manager Paul Singer is building cash to take advantage of opportunities after the next crisis. On Tuesday morning, we noted how 200 institutions that manage a combined $4.1 trillion in assets, are becoming increasingly bearish ahead of 2020. Now Bloomberg is reporting that family offices around the world are stockpiling cash ahead of a market meltdown. Also: (Dahboo77) – US Military Starting to Use China As ‘Bad Guys’ During War Games, Something Big Is Brewing
While the Trump administration and Beijing continue to spar over trade, the Pentagon has been quietly shifting towards a military threat from China during readiness drills according to SCMP. Also: (Dahboo77) – Ron Paul Warns US Rates Are Going Negative, Outraged Trump Goes Off On Powell
Former Texas congressman, Dr. Ron Paul, says that the United States won’t be the exception when negative interest rates crush the economy. Dr. Paul is warning negative interest rates are coming, and the Federal Reserve cannot stop it. Also: (Dahboo77) – DOJ Accuses JPMorgan’s Precious Metals Trading Desk Of Being A Criminal Enterprise
Who would have thought that JPMorgan’s precious metals trading desk is the functional equivalent of the mafia, and that its one-time leader, Blythe Masters, was the mafia’s don? Well, almost everyone who didn’t mind being designated a conspiracy theorist for years. And now comes vindication, because this has just been confirmed by the DOJ, which accused the PM trading desks at JPMorgan of being deeply involved in what prosecutors described as a “massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.”
In an indictment unsealed on Monday morning, the DoJ charged Michael Nowak, a JPMorgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPM’s metals desk, in the probe. (Blythe Masters was somehow omitted).
“Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period — that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told reporters. Also: (Dahboo77) – Japan Will Dump Radioactive Fukushima Water Into Pacific Ocean
More than a million tonnes of contaminated water lies in storage at Fukushima. But the power company says it will run out of space by 2022, forcing Japan to dump radioactive water into the Pacific Ocean.