{"id":55881,"date":"2020-12-05T07:47:21","date_gmt":"2020-12-05T12:47:21","guid":{"rendered":"https:\/\/olduvai.ca\/?p=55881"},"modified":"2020-12-05T07:47:21","modified_gmt":"2020-12-05T12:47:21","slug":"weekly-commentary-monetary-disorder-in-extremis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=55881","title":{"rendered":"Weekly Commentary: Monetary Disorder In Extremis"},"content":{"rendered":"<h3 class=\"post-title entry-title\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2020\/12\/weekly-commentary-monetary-disorder-in.html\">Weekly Commentary: Monetary Disorder In Extremis<\/a><\/h3>\n<div class=\"post-header\">\n<div class=\"post-header-line-1\">November non-farm payrolls gained 245,000, only about half the mean forecasts &#8211; and down from October\u2019s 610,000. It was the weakest job growth since April\u2019s employment debacle. U.S. equities rallied on the disappointing news. A few Bloomberg headlines captured the aura: \u201cStocks Gain as Jobs Miss Boosts Stimulus Bets;\u201d \u201cFed Case for Fresh Action Gets Stronger on Soft U.S. Jobs Report;\u201d and \u201cJobs Data Was a \u2018Perfect Miss\u2019 for Fed and Aid.\u201d<\/div>\n<\/div>\n<div id=\"post-body-470435405587076357\" class=\"post-body entry-content\">\nBad news has never been more positively received in the stock market. Some analysts are now anticipating the Fed will soon supersize its already massive monthly bond purchases. Chairman Powell\u2019s comments this week did little to dissuade such thinking: \u201cWe are going to keep our rates low and keep our tools working until we feel like we really are very clearly past the danger that is presented to the economy from the pandemic.\u201d<\/p>\n<p>The U.S. Bubble Economy structure has evolved into a voracious Credit glutton. There\u2019s a strong case for significant additional fiscal stimulus. The case for boosting monetary stimulus is not compelling. Financial conditions have remained ultra-loose. Credit stays readily available for even the riskiest corporate borrowers, as bond issuance surges to new heights. While formidable, the remarkable speculative Bubble throughout corporate Credit is dwarfed by what has regressed to a raging stock market mania.<\/p>\n<p>Manic November will be chronicled for posterity. Future historians will surely be confounded. It is being called the strongest ever November for equities. Up 12% for the month, the Dow posted its largest one-month advance since January 1987. The S&amp;P500 returned 10.9%, a huge bonanza relegated to small potatoes by the \u201cmelt-up\u201d in the broader market. The \u201caverage stock\u201d Value Line Arithmetic Index posted an 18.3% advance in November. The small cap Russell 2000 also surged 18.3%, and the S&amp;P400 Midcaps rose 14.1%.<\/p><\/div>\n<div>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: Monetary Disorder In Extremis November non-farm payrolls gained 245,000, only about half the mean forecasts &#8211; and down from October\u2019s 610,000. It was the weakest job growth since April\u2019s employment debacle. U.S. equities rallied on the disappointing news. A few Bloomberg headlines captured the aura: \u201cStocks Gain as Jobs Miss Boosts Stimulus Bets;\u201d [&hellip;]<\/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":[124,7756,16861,303,1849,30668,535,3650],"class_list":["post-55881","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-credit-bubble-bulletin","tag-doug-noland","tag-fed","tag-financial-markets","tag-job-growth","tag-monetary-stimulus","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55881","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=55881"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55881\/revisions"}],"predecessor-version":[{"id":55882,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/55881\/revisions\/55882"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=55881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=55881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=55881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}