Business

With the Treasury cash balance collapsing near zero, Treasury Secretary Mnuchin has written to Congress to warn them that Treasury will need to start taking extraordinary measures when statutory limit on U.S. debt is reinstated on March 16.

A copy of the letter dated March 8 was posted on Treasury website:

“Treasury anticipates it will need to start taking certain extraordinary measures in order to temporarily prevent the United States from defaulting on its obligations”

Via ConvergEx's Nicholas Colas,

Just when you thought the 8 year bull market for US stocks had shown us everything, something new comes along. 

 

That's not what the bankers want to hear...

• *TRUMP STILL COMMITTED TO RESTORING GLASS-STEAGALL: SPICER

Interestingly this comment comes after President Trump met with a group of community bankers...

And that is weghing on The Dow...

So, deregulation... after the big banks have been broken up by Glass-Steagal-lite?

That regulatory-premium in bank stocks has a long way to fall back to the curve...

Following the Trump presidential victory, two prominent macro strategists have undergone a significant change in their outlook: while David Rosenberg, who started off with a deflationary, and bearish outlook, then flipped to inflationary (and bullish), has recently once more "mean-reverted" and expects a further drop in yields as deflationary forces return, his SocGen peer, Albert Edwards - while still expecting a deflationary "ice age" in the longer-run (in case there is any confusion, he expressly states "make no mistake.

Via Charles Hugh-Smith of OfTwoMinds blog,

Eight years after the crisis of 2008-09, central banks are still injecting $200 billion a month into the global financial system to keep it from imploding.

If you want a central banker to choke on his croissant, read him this quote from socio-historian Immanuel Wallerstein: "Countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system."