In early February, in a post titled "A Wounded Deutsche Bank Lashes Out At Central Bankers: Stop Easing, You Are Crushing Us", we showed just how vast the feud between Europe's biggest - and ever more troubled commercial bank - and the ECB had become. As DB's Parag Thatte lamented then, "ECB rhetoric suggests additional easing measures forthcoming in March.
Last quarter, the stock of Restoration Hardware crashed after it announced dreadful earnings, which however were somewhat redeemed after the company came up with the most original of excuses: in an exercise of absurd reflexivity, RH blamed its own falling stock price on its poor results: "Historically, our business has a correlation to large movements in stock prices as we believe asset valuations influence our customers’ buying patterns." It also blamed various other things, all of which boiled down to one simple thing: the consumer is simply not spending.
Before we start, there is this...
And the market knows how crap things are as it prices out any rate hikes...
So the incessant bid for stocks (at record valuations) is...
By EconMatters
We think the Brexit vote is really a referendum on the European Union which we think has garnered all the positives from such a union, and now with rising debt to GDP ratios in the peripheral European countries they need the ability to monetize the debt through a currency devaluation like China.
At this point it is just funny really...
What do bonds know?
It seems the doves are winning - because the economy is dismal...
Or is the world now betting on the next round of QE? Buying bonds, buying stocks, buying gold, and selling USDollars?