Business

In a recent interview, Bill Gross provided some further truthiness regarding the state of the U.S. economy and the unveiling of the Federal Reserve as the world's banker.

As we've said countless times, Gross reiterates in the interview that the Fed's only contribution to the real economy has been to help create more jobs that aren't adding up to any real economic growth (i.e. waiter and bartender jobs at minimum wage). He points out that U.S. economic growth has in fact flat lined.

One look at Twitter this morning and we are left with the impression that if it was indeed the intention of Bloomberg's source (and/or Bloomberg), to "shut down" the website, it may have backfired.

Following yesterday's Yen surge in the aftermath of the disappointing BOJ announcement, the pain for USDJPY long continued, with the key carry pair tumbling as low as 106, the lowest level since October 2014 before stabilizing around 107, and is now headed for its biggest weekly gain since 2008, which in turn has pushed the US dollar to to its lowest close in almost a year as signs of slowing growth in the U.S. dimmed prospects for a Federal Reserve interest-rate increase. As a result, global stocks fell and commodities extended gains in their best month since 2010.

The mysterious ZARJPY indicator of global turmoil is flashing red once again as BofAML's Michael Hartnett warns of soaring sentiment into a potential "summer of shocks."

With BofAML Bull & Bear index (from 0.1 in Feb to 5.0) sentiment at 11-month highs, Hartnett sees the world split into the next few months...

"Summer of Stocks" (boring macro/trading range/grind higher) plausible... cash still high, US/EU credit underpinned, breadth improving

 

The Deutsche Bank Settlement is Meaningless

Written by Jeff Nielson (CLICK FOR ORIGINAL)