Short Hillary, Pity Powell, and Just Buy Gold- Echobay

Politics

"Two basic principles of management, and regulation, and life, are:You get what you measure, and the thing that you measure will get gamed."- Matt Levine

"Show me the Structure of a Market and I will show you how that market is gamed"-Vince Lanci

Summary- On Gaming Markets

Wells Fargo is gaming the market.Mastercard is gaming the market. Anyone with the ability to see the difference between laws and ethics with a desire to financially over achieve will game the market. It is a product of loopholes in laws created by politicians with no capital market experience. It is a part of human nature to get away with what we can. The child caught stealing a cookie is not sorry he stole the cookie. He is sorry he got caught.

Corporations have all the rights of people, but none of the social responsibility. They are therefore left to pursue their mandate, making money. Employees are encouraged to maximize profits. They feel insulated from the law. They create accounts for bonuses. Use white out on NiNJA mortgage applications and generally do what they have to. This is the downside of capitalism. And Elon Musk is a good guy in this scenario.

We ask, what will replace capitalism when resource scarcity and distribution logistics are no longer an issue? We say, give the top 5 companies in the world all the money there is. Then watch them choke. For then government's purpose will be needed. That purpose at its heart is the redistribution of wealth. Less socialistically, it is to slow the concentration of wealth into the hands of a few. To put the breaks on Darwinism in the hopes that mankind can rise above that goal. But for now, Capitalism is the best we got. Just don't call the USA a democracy. it is fast becoming a government by the corporations for the corporations. Fascism in reverse.- VBL

h/t RormNob

sorenk@marketslant.com

In Focus- Hillary Picks Powell's Brain, Then Games the System?

We will comment later in a separate post if warranted. In the meantime, read this. It is the inception point for Hillary's Gaming of the Market Structure

Is This For Real?

h/t DB

Just Buy Gold and have your stops in- It's a trade.

Global/Market News

Wells Fargo Opened a Couple Million Fake Accounts:BBG- for opening customer accounts without the customers' permission
German Exports Plunge in July:WSJ- more reason for December 8 QE launch
Mastercard sued for £14 billion in Britain's biggest damages claim:RTRS- overcharging users, surprise

WatchList

PRICECHANGE% CHG GC=F1,338.00-3.60-0.27% SI=F19.49-0.19-0.96% PL=F1,087.10-0.90-0.08% HG=F2.100.00-0.05% NG=F2.93+0.01+0.31% CL=F47.65-0.61-1.26% GLD127.59-0.68-0.53% USO10.96+0.44+4.18%

On MarketSlant

Global Equities

Shanghai 3,078.85-17.10 (-0.55%)Nikkei 225 16,965.76+6.99 (0.04%)Hang Seng Index 24,099.70+180.36 (0.75%)TSEC 9,164.88-98.01 (-1.06%)FTSE 100 6,837.20-21.50 (-0.31%)EURO STOXX 50 3,071.07-12.47 (-0.40%)CAC 40 4,521.04-21.16 (-0.47%)

Currencies

EUR/USD1.1274+0.0009 (0.08%)USD/JPY102.6285+0.3240 (0.32%)GBP/USD1.3317+0.0010 (0.08%)USD/CAD1.2951+0.0028 (0.22%)USD/HKD7.7553-0.0010 (-0.01%)USD/CNY6.6804+0.0164 (0.25%)AUD/USD0.7604-0.0047 (-0.61%)

Economic Calendar

DateTime (ET)StatisticForActualBriefing ForecastMarket ExpectsPriorRevised FromSep 610:00 AMISM ServicesAug51.454.254.755.5--Sep 77:00 AMMBA Mortgage Index09/030.9%NANA2.8%-Sep 710:00 AMJOLTS - Job OpeningsJuly5.871MNANA5.643M5.624MSep 710:30 AMCrude Inventories09/03-NANA2.276M-Sep 72:00 PMFed's Beige BookSep-NANANA-Sep 88:30 AMInitial Claims09/03259K265K265K263K--Sep 88:30 AMContinuing Claims08/272144KNANA2151K2159KSep 810:30 AMNatural Gas Inventories09/0336 bcfNANA51 bcf-Sep 811:00 AMCrude Inventories09/03-14.513MNANA2.276M-Sep 83:00 PMConsumer CreditJul$17.7B$14.6B$16.0B$14.5B$12.3BSep 910:00 AMWholesale InventoriesJul-0.1%0.0%0.3%-