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Tyler Durden

Tyler Durden

Tyler Durden is a reference to the lead character in Fight Club. It's the pseudonym for Zero Hedge's key author(s) used to hide their identities.

Articles by Tyler Durden

Is The Swiss National Bank A Fraud?

21 hours ago

The price of shares in The Swiss National Bank is up 11 days in a row, soaring 150% in the last two months.

SNB Stock Price, 2010 – 2017(see more posts on Swiss National Bank Stock, ) – Click to enlarge
That sounds like a ‘tulip’ bubble-like ‘fraud’…

Bitcoin and SNB, 2013 – 2017(see more posts on Bitcoin, Swiss National Bank Stock, ) – Click to enlarge
The SNB is up over 120% in Q3 so far – more than double ‘bubble’ Bitcoin…

SNB and Bitcoin, Jul 2017 – Sep 2017(see more posts on Bitcoin, Swiss National Bank Stock, ) – Click to enlarge
Let’s check with the markets ultimate arbiter of what’s fraud and what’s real – JPMorgan CEO Jamie Dimon:
It’s a bubble (because it has exploded vertically in the last

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Fed’s Asset Bubbles Now At The Mercy Of The Rest Of The World’s Central Bankers

2 days ago

“Like watching paint dry,” is how The Fed describes the beginning of the end of its experiment with massively inflating its balance sheet to save the world. As former fund manager Richard Breslow notes, however, Yellen’s decision today means the risk-suppression boot is on the other foot (or feet) of The SNB, The ECB, and The BoJ; as he writes, “have no fear, The SNB knows what it’s doing.”
As we reported previously, In the second quarter of the year, one in which unlike in Q1 fund flows showed a persistent and perplexing outflow from US stocks, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk

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Swiss Mystery: Someone Keeps Flushing €500 Bank Notes Down The Toilet

3 days ago

While there are several comments one can make here, “dirty money”, “flush with cash” and “flushing money down the toilet” certainly coming to mind, perhaps the ECB was on to something when it warned that €500 “Bin Laden” bills (which it has since discontinued to print) tend to be used by criminals.
The reason for this is that in recent weeks, Swiss prosecutors have been gripped by a mystery, trying to figure out why someone tried to flush tens of thousands of euros down the toilet at a Geneva branch of UBS.
And not just once.
The first €500 bills were discovered several months ago in a bathroom close to a bank vault containing hundreds of safe deposit boxes, according to a report in Tribune de Geneve confirmed by

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Swiss National Bank Bubble Regains Lead Over Bitcoin

3 days ago

A week ago we tweeted…

Dear @SNB_BNS_en – you are the next bitcoin: congratulations pic.twitter.com/cld4YNbNLb
— zerohedge (@zerohedge) September 14, 2017

But as Bitcoin rebounded from its China challenges, it overtook The SNB once again as bubbliest bubble. However, a 13% spike in the share price of The Swiss National Bank today has put an end to that leaving the central bank back in first place among the melter-uppers…

WTF > SNB > BTC!?

Related posts: Digital-Currency Milestone: Somebody Just Bought A House With Bitcoin
Forget Tulips & Bitcoin – Here’s The Real Bubble
Weekly SNB Intervention Update: Sight Deposits and Speculative Position
Central Banks Buying Stocks

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Digital-Currency Milestone: Somebody Just Bought A House With Bitcoin

4 days ago

A day after Bridgewater Associates Founder Ray Dalio claimed that bitcoin was “definitely in a bubble” partly because he said the digital currency was too difficult to spend, CoinTelegraph is reporting that the first-ever bitcoin-only real-estate transaction has been completed in Texas.
The transaction “illustrates crypto’s potential to transform how financial transactions are conducted,” according to Futurism.com.
The Texas-based real estate brokerage firm Kuper Sotheby’s International Realty, the firm that reperesented the buyer, declined to disclose the number of bitcoins that were exchanged for the home. Futurism.com noted the ease with which the transaction was conducted. “The buyer simply transferred the

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Boris Johnson Threatens To Resign If Theresa May “Goes Against His Brexit Demands”, Pound Rises

4 days ago

In confirmation that Theresa May’s upcoming Florence speech this Friday is not only what many have called “the most important day for Brexit since the referendum”, but also the most opaque, the Telegraph reports that UK Foreign Secretary Boris Johnson will resign as before the weekend if Theresa May veers towards a “Swiss-style” arrangement with the EU in her upcoming speech.
The Foreign Secretary believes he will have no option but to walk out of the Cabinet if the Prime Minister advocates permanently paying for access to the single market. Stopped by reporters in New York today after going for a run, Mr Johnson said he was not going to resign and described the Cabinet as “a nest of singing birds”.
However, he has

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One-Tenth Of Global GDP Is Now Held In Offshore Tax Havens

6 days ago

Accurately measuring the scope of global wealth inequality is a notoriously difficult undertaking – a fact that was brought to light last year when the International Consortium of Investigative Journalists published the Panama Papers, exposing clients of Panamanian law firm Mossack Fonseca. As the papers revealed, Mossack Fonseca, which is only the world’s fourth-largest provider of offshore financial services, boasted a client roster stacked with some of the world’s wealthiest and most politically connected individuals. The former prime minister of Iceland (who was forced from office because of the revelations), associates of Russian President Vladimir Putin, and the father of former UK Prime Minister David

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Key Events In The Coming Week: All Eyes On Fed Balance Sheet Announcement

7 days ago

This week attention will fall on US FOMC rate decision, BoJ policy rate announcement, German and NZ elections. Economic data releases include PMI in the Euro area, retail sales in the UK and existing home sales in US. In Emerging Markets, there are monetary policy meetings in South Africa, Indonesia, Hungary, Taiwan and Philippines. BofA …

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BIS Finds Global Debt May Be Underreported By $14 Trillion

7 days ago

In its latest annual summary published at the end of June, the IIF found that total nominal global debt had risen to a new all time high of $217 trillion, or 327% of global GDP… … largely as a result of an unprecedented increase in emerging market leverage. While the continued growth in debt in …

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Has The NYT Gone Collectively Mad?

11 days ago

Authored by Robert Parry via ConsortiumNews.com, Crossing a line from recklessness into madness, The New York Times published a front-page opus suggesting that Russia was behind social media criticism of Hillary Clinton… For those of us who have taught journalism or worked as editors, a sign that an article is the product of sloppy or …

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Former UBS Trader Arrested, Charged With Rigging Gold Prices

11 days ago

Three years after we first identified the former head of UBS's gold desk in Zurich as someone directly implicated in the rigging of precious metals prices, Bloomberg reports that Andre Flotron, a Swiss resident, was arrested while visiting the U.S., according to people familiar with the matter. Having been "on leave" since 2014, it appears …

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Forget Tulips & Bitcoin – Here’s The Real Bubble

13 days ago

While the broader market for Swiss stocks has risen modestly this year, one ‘entity’ has outperformed its peers by such a staggering margin, it has left bamboozled market experts struggling for an explanation.
And that company is…the Swiss National Bank.
The price of a share in Swiss National Bank in August rose above 3,000 francs ($3,143) for the first time, more than double the level of a year ago, and up 50% since mid-July, as the Financial Times noted in a story about its performance.
Shares of the SNB trade like any other company listed on the Swiss stock exchange, though because of their price liquidity is somewhat thinner. The Swiss cantons together own 45% of the SNB while 15% is owned by cantonal banks and

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Forget Tulips & Bitcoin – Here’s The Real Bubble

13 days ago

While the broader market for Swiss stocks has risen modestly this year, one 'entity' has outperformed its peers by such a staggering margin, it has left bamboozled market experts struggling for an explanation. And that company is…the Swiss National Bank. The price of a share in Swiss National Bank in August rose above 3,000 francs …

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Six Banks Join UBS’s “Utility Coin” Blockchain Project

22 days ago

Here’s a piece of news that the remaining human members of Wall Street’s FX sales and trading desks probably don’t want to hear.
According to the Financial Times, six of the world’s largest banks have decided to join a blockchain project called “utility coin” that will allow banks to settle trades in securities denominated in different currencies without a money transfer. What’s worse, the banks expect to begin live-testing the project late next year.

Here’s the FT:
“Barclays, Credit Suisse, Canadian Imperial Bank of Commerce, HSBC, MUFG and State Street have teamed up to work on the “utility settlement coin” which was created by Switzerland’s UBS to make financial markets more efficient.
The move comes as the

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The Secret History Of The Banking Crisis

August 14, 2017

Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for?
– Click to enlarge
It is a decade since the first tremors of what would become the Great Financial Crisis began to convulse global markets. Across the world from China and South Korea, to Ukraine, Greece, Brexit Britain and Trump’s America it has shaken our economy, our society and latterly our politics. Indeed, it has thrown into question who “we” are. It has triggered both a remarkable wave of nationalism and a deep questioning of social and economic inequalities. Politicians promise their voters that they will “take back control.” But the basic

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“Under Any Analysis, It’s Insanity”: What War With North Korea Could Look Like

August 14, 2017

Now that the possibility of a war between the US and North Korea seems just one harshly worded tweet away, and the window of opportunity for a diplomatic solution, as well as for the US stopping Kim Jong-Un from obtaining a nuclear-armed ICBM closing fast, analysts have started to analyze President Trump’s military options, what a war between the US and North Korea would look like, and what the global economic consequences would be. Needless to say, this is a challenging exercise due to the countless possible scenario, event permutations and outcomes, not least because China and Russia may also be sucked in, leading to a true world war.
“Realistically, war has to be avoided,” said John Delury, an assistant professor

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American Citizen Held By Immigration Enforcement For Over 3 Years Without Lawyer

August 14, 2017

Submitted by Sovereign Man This Week's Intelligence American Citizen Held by Immigration Enforcement for Over 3 Years Without Lawyer “I am an American citizen,” Davino Watson pleaded with ICE (Immigration and Customs Enforcement) agents, judges, and jailers. But to no avail; he was held in detention for over 3 years as a deportable illegal immigrant. …

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“Mystery” Central Bank Buyer Revealed: SNB Now Owns A Record $84 Billion In US Stocks

August 11, 2017

In the second quarter of the year, one in which unlike in Q1 fund flows showed a persistent and perplexing outflow from US stocks and into European and Emerging Markets, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a “mystery” central bank was quietly bidding up risk assets by aggressively buying stocks. And no, it was not the BOJ: the Japanese Central Bank’s interventions in the stock market are familiar to all by now, and for the most part the BOJ keeps its interventions local, mostly propping up Japanese stocks, whether the Nikkei 225 or the Topix.

The answer was revealed this morning when the hedge fund known as the “Swiss National Bank”

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Risk Off: Global Stocks Slide As “Fire And Fury” Results In “Selling And Fear”

August 10, 2017

US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday’s sharp escalation in the war of words between the U.S. and North Korea. In a broad risk-off move U.S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks. The Swiss franc gained 1.2 percent to 1.1320 per euro its biggest daily advance since February 2015, while the yen surged as much as 0.8% against per euro, its strongest level in three weeks while gold rose.
“Trump’s comments about North Korea have created nervousness and the fear is if the President really means what he said:

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Winning: U.S. Crushes All Other Countries In Latest Obesity Study

August 3, 2017

When President Trump promised last fall that under a Trump administration America would “would win so much you’ll get tired of winning,” we suspect this is not what he had in mind.  According to the latest international obesity study from the Organization For Economic Co-operation and Development (OECD), America is by far the fattest nation in the world with just over 38% of the adult population considered ‘obese.’
Here are some stats from the OECD’s latest study courtesy of the Washington Examiner:

–  In 2015, an estimated 603.7 million adults and 107.7 million children worldwide were obese. That represents about 12 percent of all adults and 5 percent of all children.
–  The prevalence of obesity doubled in 73

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Swiss Banks Paid Out €1 Billion In Negative Interest Rates In The First Half

August 1, 2017

Overnight, the Swiss National Bank disclosed the composition and breakdown of its FX reserves as of June 30. There were no notable changes, as the central bank kept most of its asset allocations unchanged from the previous quarter, with equities, government bonds and “other bonds”, at 20%, 68% and 12% respectively. There were also no shifts in the currency composition as shown in the table below.
There was one notable – and unexpected – development, and it had to do with the SNB’s -0.75% deposit rate. As Reuters writes, Swiss banks paid 970 million Swiss francs ($1 billion) in negative interest rate charges in the first half of 2017, a 40% surge from the previous year, as clients continued to hoard even more cash

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When Do We Know These Are Delusional Markets

July 27, 2017

Latest Investment Outlook
In his latest investment outlook, Fasanara Capital’s Franceso Filia, who two months ago explained in one chart how the “fake market” operates…
… discuss what happens when a “Twin Bubble meets quantitative tightening” and answers why record-low volatility breeds market fragility and precedes system instability. We’ll have more to share on that shortly, but for now, here is Filia with his take on ‘when do we know these are delusional markets‘:

Signs of complacency and disconnect from fundamentals abound. So to sanity check, it may still be helpful to periodically remind ourselves of a few recent ones. In no particular order:
Argentina uses defaults as a recurrent macro-prudential policy,

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Switzerland Opens Door To Bitcoin Asset-Management Business

July 16, 2017

Bitcoin and other cryptos have fallen sharply over the past month in a shakeout that saw some of the early longs decide to take their winnings and walk away. But a 20% drop from the all-time highs hasn’t done much to temper wealthy investors interest in bitcoin and other cryptocurrencies as alternative investments potentially worthy of diversification. And with the Greyscale Bitcoin Investment Trust still trading at a ridiculous premium, and the chances of the SEC approving a bitcoin ETF in the US looking increasingly remote, it’s unsurprising that “private wealth managers” and trying to scoop up wealthy customes who have expressed an interest in bitcoin.
But while regulators in the US and in many other part of the

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Bond Selloff Returns As EM Fears Rise; Oil Slides; BOJ Does Not Intervene

July 11, 2017

U.S. index futures point slightly lower open. Asian shares rose while stocks in Europe fell as energy producers got caught in a downdraft in oil prices and reversed an earlier gain after Goldman unexpectedly warned that WTI could slide below $40 absent “show and awe” from OPEC. The dollar rose, hitting a four-month high against …

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Sornette’s Supercomputer Is Betting On A Market Crash

July 10, 2017

Via FinancialSense.com, One of the world's most powerful supercomputers, retrofitted for trading the stock market, appears to be betting on a crash in the months ahead. The Financial Crisis Observatory (FCO) at ETH Zurich released its latest Global Bubble Status Report on July 1st. As we discussed with FCO’s director, Didier Sornette, on our podcast …

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Key Events In The Coming Busy Week: Fed, BOJ, BOE, SNB, US Inflation And Retail Sales

June 13, 2017

After a tumultous week in the world of politics, with non-stop Trump drama in the US, a disastrous for Theresa May general election in the UK, and pro-establishment results in France and Italy, this is shaping up as another busy week ahead with multiple CB meetings, a full data calendar and even another important Eurogroup meeting for Greece. Wednesday’s FOMC will be the main event, with the Fed expected to hike 25bp (see full Goldman preview here), while the BOJ, BOE and SNB all remain on hold.
Courtesy of BofA, here is the breakdown of key events:
FOMC the star in a G10 Central Bank week
After the eventful UK election, and less than eventful ECB meeting, the week ahead is a busy one, opening with the first round of

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Negative Rates: The New Gold Rush… For Gold Vaults

June 9, 2017

Negative interest rates and the populist uprising that spurred the UK to vote for Brexit and Americans to elect Trump has helped reignite a rush into physical safe haven assets like gold and silver, which however has led to a shortage of safe venues where to store the precious metals (unlike bitcoin, gold actually has a physical dimension). And now companies that operate storage facilities for precious metals and other valuables are ramping up their capacity to help cash in on the soaring demand for storage facilities.
Two firms told Bloomberg they’re planning to open vaults in Europe capable of holding more than 100 million euros ($112 million) in gold, offering customers lower costs than exchange-traded products

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The New Gold Rush… For Gold Vaults

June 8, 2017

Negative interest rates and the populist uprising that spurred the UK to vote for Brexit and Americans to elect Trump has helped reignite a rush into physical safe haven assets like gold and silver, which however has led to a shortage of safe venues where to store the precious metals (unlike bitcoin, gold actually has …

Read More »