It is the 16th of October 2019

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Former IMF Chief Economist Admits Japan's "Endgame" Scenario Is Now In Play

Back in October 2014, just after the BOJ drastically expanded its QE operation, we warned that the biggest risk facing the BOJ (and the ECB, and the Fed, and all other central banks actively soaking up securities from the open market) was a lack of monetizable supply. We cited Takuji Okubo, chief economist at Japan Macro Advisors in Tokyo, who said that at the scale of its current debt monetization, the BOJ could end up owning half of the JGB market by as early as in 2018. He added that "The BOJ is basically declaring that Japan will need to fix its long-term problems by 2018, or risk becoming a failed nation."

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Behold Accounting Magic 101: This Is How Alcoa Just "Beat" Consensus EPS

Some companies are notorious for buying back billions in stock in order to mask the decline in their earnings by reducing the number of shares outstanding. Alcoa, which still has a major debt overhang from the last financial crisis, is unable to do that as it simply does not have the free cash flow to dedicate to shareholder friendly activities. Instead, Klaus Kleinfeld's company is forced to resort to an even more primitive form of EPS fudging: massive quarterly EPS addbacks.

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Inflation Is Not Risen - It's The Cheapest Easter "Since Lehman"

As christians remember the fall and rise of Jesus, there is another - perhaps more important to many - rising-and-falling thing to celebrate: Egg prices are the cheapest for Easter since at least 2008...

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"Fear" Indicator Surges To Record High

As CS' Josh Lukeman notes, the degree of hedging we’re seeing as we go higher illustrated in the CS Fear index (now at all-time highs) suggests institutional investors are not believers in the equity rally

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