With the S&P 500 trading back above 2,000, it appears The Fed needed to do something to tamp down the enthusiasm exhibited by this manic short squeeze. As Fed vice-chair unleashed the following: "We may be seeing the first stirrings of higher inflastion," the short-squeeze ended and everything reversed...
Killing the short squeeze...
Sending gold higher and stocks and crude lower...
There’s a lot of talk going around these days about “helicopter money.”
For those unfamiliar, it’s billed as a kind of last Keynesian resort when ZIRP, NIRP, and QE have all failed to boost aggregate demand and juice inflation.
For instance, HSBC said the following late last month: “If central banks do not achieve their medium-term inflation targets through NIRP, they may have to adopt other policy measures: looser fiscal policy and even helicopter money are possible in scenarios beyond QE and negative rates.”
Three weeks ago Morgan Stanley did something unthinkable: it admitted the truth that in this centrally-planned "bizarro world" its "Advice Has Been Horrendous" explaining this revelation as follows: "for those who follow our portfolio, we did quite well over the five years from 2011-2015. But, our portfolio just had its worst month in 61 months in January, and things have not improved in February. The market is down more than we thought it would be. Our biggest sector bet has been financials (particularly credit cards).
So did the G-20 decide that coordinated buying of crude oil was "unequivocally good" for the world's economy stock markets?
Tick-for-Tick...
Submitted by Jeffrey Moore via GlobalRiskInsights.com,
In the 14th century, the Medici family of Florence began its rise to prominence, investing profits from a thriving textile trade to fund what would become the largest banking institution in Europe. The success of the legendary banking family helped to usher in the Italian Renaissance and thus change the world. Now, Italian banks seem poised to alter the world yet again.