{"id":17631,"date":"2016-02-11T11:58:42","date_gmt":"2016-02-11T16:58:42","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17631"},"modified":"2016-02-11T11:58:42","modified_gmt":"2016-02-11T16:58:42","slug":"why-markets-are-crashing-faith-in-central-banks-fails","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17631","title":{"rendered":"Why Markets Are Crashing: “Faith In Central Banks Fails”"},"content":{"rendered":"

Why Markets Are Crashing: “Faith In Central Banks Fails”<\/a><\/h3>\n

While Citigroup’s Eric Lee thinks its “ridiculous” to talk fo a US recession, it appears the macro data and markets would strongly disagree: as Bloomberg reports:<\/p>\n

Signals by central banks from Europe to Japan that additional stimulus is at the ready are failing to ease investor concern that global growth will keep slowing.<\/p>\n

Citigroup\u2019s Economic Surprise Index already indicates data in Group of 10 economies are falling short of estimates by the most since April 2013, and a selloff in crude oil and weakening credit markets are exacerbating the malaise. Yellen suggested that the central bank might delay, but not abandon, planned interest-rate increases in response to recent turmoil in financial markets.<\/p>\n

\u201cOver the last few years when we got bad news, equity markets would rally because they would interpret this as potential for central banks to go more dovish,\u201d said Mohit Kumar, head of rates strategy at Credit Agricole SA\u2019s corporate and investment bank unit in London.<\/p>\n

\u201cNow that correlation is shifting to bad news is actually bad news. Investors are concerned over central banks\u2019 policy options given the market is driven by factors over which they have little or no control over.\u201d<\/p><\/blockquote>\n

And so the headline of the day from Bloomberg seems very appropriate:<\/p>\n

Some further clarifications from Bloomberg:<\/p>\n

\"\"<\/a><\/p>\n

Some further clarifications from\u00a0Bloomberg<\/a>:<\/p>\n

\n
Financial markets are signaling that investors have lost faith in central banks\u2019 ability to support the global economy.<\/strong><\/div>\n<\/blockquote>\n

And some\u00a0more<\/a>:<\/p>\n

“The markets are wondering, well, we\u2019ve had these non-conventional monetary policy experiments for the last six or seven years and they haven\u2019t caused a sustainable boost to global growth, so what will the latest moves do,\u201d said Shane Oliver, head of investment strategy at Sydney-based AMP Capital Investors Ltd.\u00a0\u201cIt\u2019s a reasonable question to ask given the events of the last few weeks.\u201d<\/strong><\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Why Markets Are Crashing: “Faith In Central Banks Fails” While Citigroup’s Eric Lee thinks its “ridiculous” to talk fo a US recession, it appears the macro data and markets would strongly disagree: as Bloomberg reports: Signals by central banks from Europe to Japan that additional stimulus is at the ready are failing to ease investor […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,4333,184,1450,2088,366,434,452,500,534,1264,2443,4318],"class_list":["post-17631","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-crude","tag-crude-oil","tag-equity-markets","tag-faith","tag-global-economy","tag-international-monetary-fund","tag-japan","tag-market-collapse","tag-monetary-policy","tag-recession","tag-stock-markets","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17631"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17631\/revisions"}],"predecessor-version":[{"id":17632,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17631\/revisions\/17632"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}