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Did Covid-19 Just Pop All the Global Financial Bubbles
Did Covid-19 Just Pop All the Global Financial Bubbles? Once confidence and certainty are lost, the willingness to expand debt and leverage collapses. Even though the first-order effects of the Covid-19 pandemic are still impossible to predict, it’s already possible to ask: did the pandemic pop all the global financial bubbles? The reason we can ask […]
This Wasn’t Supposed To Happen: One Day After Fed Rate Cut, Repos Signal Record Liquidity Shortage
This Wasn’t Supposed To Happen: One Day After Fed Rate Cut, Repos Signal Record Liquidity Shortage Yesterday morning, when we discussed the sudden spike in liquidity shortage that resulted in both a (record) oversubscribed term repo and the first oversubscribed overnight repo since the start of the repo crisis, we said that “if going solely by the […]
Saudis Urge More Than 1 Million Bpd Oil Cut To Prop Up Prices, Russia Opposes
Saudis Urge More Than 1 Million Bpd Oil Cut To Prop Up Prices, Russia Opposes Update (0800ET): The Wall Street Journal reports that Russia opposes the Saudi plan to deepen OPEC+ cuts by 1.2mm b/d. Developing… * * * As we detailed earlier, Brent crude futures were up 75 cents, or 1.45%, at 52.61 a […]
“Ground Zero For Trade” – Port Of Long Beach Warns Of Shipping Slump From China
“Ground Zero For Trade” – Port Of Long Beach Warns Of Shipping Slump From China Investors are grossly underestimating the potential economic impact of Covid-19 as the first signs of China’s supply chain meltdown are now washing ashore on US West Coast ports. The Port of Long Beach, the second-largest containerized port in the US, has had […]
Next Economic Downturn May Last Forever And A Day
Next Economic Downturn May Last Forever And A Day Market Manipulation Has Created Big Problems Based on how Japan has fared over the last several decades it is difficult to see the green shoots of a global economic spring forth as a result of lower interest rates. In fact, the next economic downturn will likely […]
Rabobank: What Level Of Interest Rates Will Incentivize You To Risk The Death Of Yourself And Your Family
Rabobank: What Level Of Interest Rates Will Incentivize You To Risk The Death Of Yourself And Your Family “Tonight the super trouper lights are gonna find meShining like the sun (sup-p-per troup-p-per)Smiling, having fun (sup-p-per troup-p-per)Feeling like a number one…” So sang markets yesterday in excitement as we enter what I am dubbing “Super Trouper […]
Bill Fleckenstein: Coronavirus Will Cause A “Confidence Crisis” In The Fed
Bill Fleckenstein: Coronavirus Will Cause A “Confidence Crisis” In The Fed Money manager and metals specialist Bill Fleckenstein appeared on the Quoth the Raven Podcast on Sunday to give his thoughts about gold, the market’s reaction to coronavirus and the Fed’s coming “confidence crisis”. Gold First, talking about last week’s move in gold, Fleckenstein says he doesn’t […]
The Good, Bad, & Ugly Of Virus Response: El-Erian Admits Govts & Central Banks Can Only Do So Much
The Good, Bad, & Ugly Of Virus Response: El-Erian Admits Govts & Central Banks Can Only Do So Much Look for this week to be full of news about governments and central banks signaling their “whatever it takes” willingness to take additional policy measures to fight the contractionary impact of the coronavirus on virtually every […]
Coronageddon: Can a “Minsky Moment” be Avoided?
Coronageddon: Can a “Minsky Moment” be Avoided? There’s a chance that the coronavirus will be contained in the United States and that fewer people will be infected than in China or Iran. But there’s also a possibility that the highly-contagious virus will spread and that there will be sporadic outbreaks across the country. If this […]
Equity & Oil Futures Crash As Market Opens Without Fed Bailout
Equity & Oil Futures Crash As Market Opens Without Fed Bailout After Friday afternoon’s combination of Jay Powell’s statement and a major rebalancing flow sent stocks soaring into the close, a lack of the much-demanded ‘coordinated global easing’ this weekend has spoiled the party and futures are opening down hard. Friday’s almost 1000 point surge […]
2020 Crash
2020 Crash Complacency came before the fall. All of 2019 market participants ignored the non existent earnings growth. Too strong was the now pavlovian reflex to chase easy central bank money. Too trusting in central banks to again produce a reflation scenario that would make all the troubles go away. Everything was ignored and markets […]
“We’ve Reached The Tipping Point” – Guggenheim’s Minerd Warns Virus Will Deflate The Everything Bubble
“We’ve Reached The Tipping Point” – Guggenheim’s Minerd Warns Virus Will Deflate The Everything Bubble Last week, Guggenheim’s Global CIO Scott Minerd exclaimed that “the cognitive dissonance in the market is stunning,” as he reflected on the ever-rising stock prices (and collapsing credit spreads) he was seeing in the face of growing global fears of the virus’ […]
Why a bear market will lead to a dollar collapse
Why a bear market will lead to a dollar collapse Falling equity markets this week are likely to signal the onset of a bear market, responding to a combination of the coronavirus spreading beyond China and persistent indications of a developing recession. This has provoked a flight into US Treasuries, with the ten-year yield falling […]
Global Demographic Fact Vs. Central Bank Sorcery
Global Demographic Fact Vs. Central Bank Sorcery Summary The annual growth of the working-age population is the organic baseline for growth in national, regional, and global consumption. However, since World War II, interest rate policy has moved inversely of annual working-age population growth, to incent ever more debt as working-age population growth has decelerated to […]
