Via HardAssetsAlliance.com,
I was sure I misread the title, because everyone instinctively knows this policy is a bad idea… right?
But I didn’t misread it. And it was far from the only article in support of it.
The title was “Get Ready to be Showered by Helicopter Money.” And the voices behind this policy are growing.
Free money to your bank account
As a result of the dramatic surge in the S&P500 from its February lows, which erased the worst ever start to a year, and nearly regained the all time highs in the US stock market on a combination of a central bank scramble to reflate, the "Shanghai Accord", and the most violent short squeeze in history, coupled with a historic credit injection by China which as we first reported amounted to a record $1 trillion in just the first three months of the year...
... economists have shelved discussions about the threat of a US recession.
That is a mistake.
The dollar's gyrations remain a key source of inspiration for traders with the fundamental focus continuing to switch between falling US and rising OPEC production, according to Saxo Bank's Ole Hanson.
The nervousness and negative price action seen this week was triggered by a change in focus from falling US production towards the rising supply from others, especially within OPEC. Having seen calendar 2017 almost hit $50 last week the realisation that further upside may be hard to achieve may has helped trigger increased demand for protection.
One year ago, SunEdison was the darling of the hedge fund world. It is now bankrupt. Moments ago, Jim Chanos revealed that (in addition to Tesla) he is also short Elon Musk's SolarCity, sending the stock sliding.
But what is the bear case?
Well, courtesy of Axiom's Gordon Johnson, here are some very specific reasons why Chanos may once again have a home run on his "short" hands. Below is his "big picture" summary:
SOLARCITY CORP. (SCTY – $26.45 – SELL)
Following the denial in February that this action is in any way about reducing cash, The ECB has made its decision on the EUR500 Bill: