Jim’s Mailbox

Posted at 10:12 AM (CST) by & filed under Jim's Mailbox.

Courtesy of JB.

Jim

 

 

 

 

 

 

Jim/Bill,

Peter Pan comes back from flying high, but finds nowhere to land!

 

 

 

 

 

 

Look for the “golden” runway m’boy.

CIGA Wolfgang Rech

Don’t Hold Your Breath For A “Powell Put” To Protect From The Market Plunge
October 11, 2018

In April of this year, Deutsche Bank calculated the level of the new “Powell Put,” noting that one can estimate the strike of that ‘put’ in two different ways.

    First, delta neutral, in which a rise in vol is compensated with lowering of the strike in such a way that the underlying is unchanged. Using this approach we find that the S&P drop started at the point when S&P was at 2800 which places the new strike of the Fed put somewhere in the 2300 — 2400 range.

Adding that the “Fed put is embedded in the beta, which represents response of stocks to rates rise. Higher strike, i.e. lower deductible, implies a more protective Fed; lower beta corresponds to a higher deductible or a lower strike of the put.” And as shown above, where previously the beta was 10, it has since jumped to 30, meaning that the Fed remains highly protective (as Bank of America repeatedly showed before). According to Kocic, “this is a residual of the Fed’s awareness of the distortions caused by QE as well as the market’s vulnerability to stimulus withdrawal.”

And as Deutsche further explaineds, it is very unlikely that the market will sell off in a calm, cool and collected manner from its current level to 2,300; in fact, the drop would likely be far more stormy as a result of unwinding convexity flows, which push investors out of equities and into bonds. His explanation below:

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How many Goldman employees does it take to run a country?

Dave

“Not Interested” – Dina Powell Won’t Replace Nikki Haley As UN Ambassador; Will Remain At Goldman: BBG
October 11, 2018

Former Deputy National Security Advisor for Strategy Dina Powell is said to be one of President Trump’s top candidates to replace Nikki Haley as ambassador to the UN when Haley leaves her post at the end of the year. However, according to a Bloomberg report, Powell is leaning toward staying at Goldman Sachs, where she serves on the bank’s 32-member advisory committee. Trump has reportedly called Powell about the job twice, once before Haley announced her resignation and again on Wednesday after their joint goodbye press conference. And although several Goldman execs who reportedly spoke with BBG for its story said they believe Powell would ultimately take the job if offered, others are aggressively pushing for her to stay.

“Dina is certainly a person I would consider and she’s under consideration,” said Trump, who has said he’s considering five people for the job, including Powell. Politico reported on Wednesday that Powell is the ‘top candidate’ for the job.

But Goldman CEO David Solomon made clear that he hopes Powell will remain at Goldman (presumably because the bank needs someone on the inside with strong connections inside the administration, particularly after the controversy surrounding Gary Cohn’s departure). However, if Powell did take the job, she would likely represent a revival of the ‘globalist’ wing of the Trump administration that appeared to lose out to the Bannonites after the Cohn’s departure.

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Courtesy of JB.

Jim

Lawless FBI’s Dir. Refuses To Deny That Trump’s Phone Calls Are Being Listened To
October 11, 2018

The deep state’s agenda against President Donald Trump has become even clearer after FBI Director Christopher Wray refused to give an answer when asked if the FBI has spied on the president.

During a Senate hearing on Wednesday, Wray answered several questions about the FBI investigation into sexual assault allegations against Supreme Court Justice Brett Kavanaugh.

However, the more important story, in terms of the deep state’s surveillance on American citizens, hasn’t been getting as much coverage.

The deep state’s agenda against President Donald Trump has become even clearer after FBI Director Christopher Wray refused to give an answer when asked if the FBI has spied on the president.

During a Senate hearing on Wednesday, Wray answered several questions about the FBI investigation into sexual assault allegations against Supreme Court Justice Brett Kavanaugh.

However, the more important story, in terms of the deep state’s surveillance on American citizens, hasn’t been getting as much coverage.

More…