Authored by Lance Roberts via RealInvestmentAdvice.com,
There is a really big crisis coming.
Think about it this way.
After 8 years and a 230% stock market advance the pension funds of Dallas, Chicago, and Houston are in severe trouble. But it isn’t just these municipalities that are in trouble, but also most of the public and private pensions that still operate in the country today.
Four months ago we showed that according to 6 month EURCZK forwards - driven by a recent surge in Czech inflation - the market was convinced the Czech central bank would end its Koruna peg to the Euro some time before the summer.
S&P futures are little changed at 6am ET, trading at 2347.55 and paring an earlier 0.4 percent drop, on the back of the USDJPY ramp which for the second day in a row has emerged alongside the European open, just as the key 110 support level appears in danger, soothing concerns about the Fed's balance sheet reduction and "some" Fed officials warning that stocks have gotten expensive.
After yesterday's sudden last hour swoon, in which the DJIA tumbled over 200 points after the FOMC Minutes, the biggest intraday reversal in 14 months, suddenly the bears - especially those who until recently were on the fences - are getting more vocal, such as Mark Cudmore, Bloomberg's former FX trader who this morning writes that "it’s now a matter of when, not if, markets break down into a proper bout of risk-aversion." As for timing, he sayd that "we’re debating the hour rather than the week."
His full note:
Authored by Wolf Richter via Wolf Street,
Condo sales in Miami-Dade County have plunged. Condos on the market have surged. Supply has hit 14 months. Developers are sitting on completed units they can’t sell, and months’ supply in their projects has reached several years.