You know you have 'tinkered' too much in the machincations of what dealers now call a "dead market" when the world's largest sovereign bond market is inverted at the short-end and the long-end. The utter folly of Peter Pan policy has sent 10Y JGB yields below the BoJ's overnight call rate for the first time ever...
Earlier today, Canada's new Liberal government unveiled a stimulus budget meant to revive slumping growth with a surge in infrastructure spending and said it would run a deficit nearly three times larger than promised during last year's election.
On Saturday, we highlighted a rather disturbing statistic.
60+ day delinquencies for subprime auto ABS have now risen above crisis levels to 5.16% - levels we haven't seen since 1996.
Submitted by Charles Huigh-Smith of OfTwoMinds blog,
Cheap imports, offshoring of production and the global expansion of financial markets have driven U.S. corporate and financial profits to unprecedented heights.
Earlier today Fed President Evans said this "I think the economic fundamentals [of the US] are really quite good." As the following three charts show, there is only one thing that looks "quite good" and it is not 'economic fundamentals'...
Federal Reserve Bank of Chicago President Charles Evans says “we expect 2016 growth will be 2 to 2.5 percent and I think the fundamentals are really quite good for the economy going forward.”