Business

As we detailed initially here, and followed here, there is a clear and present danger - no matter what the vareious Fed speakers say - that The Fed will be forced into negative rates sooner rather than later. The market appears to be losing complete faith in The Fed's current narrative as bets on NIRP have reached record levels - with 2017 now more likely than 2016 (QE first?).

As we showed previously, the overall bets on NIRP continue to soar to record highs...

By EconMatters

At the peak of the last financial crisis, as the credit liquidation wave was jumping from one highly levered product to the next, one of the hardest hit sectors was Collateralized Loan Obligations (CLO) space, where the rout and massive P&L losses across most tranches led to a revulsion for new issuance, which effectively shut down the sector for the next 3 years.

Submitted by Harry Dent via EconomyandMarkets.com,

So the S&P 500 is out of correction for now and the coast is clear. NOT! This is exactly what we’ve been predicting would happen – after reaching new lows, stocks would have to bounce before they inevitably resume their longer-term trend, which is down.

But stocks haven’t been the only victims of late. Just a couple weeks ago the January nonfarm payroll report came in at 151,000 jobs. So much for the expected 190,000! And of the ones reported, they were mostly low-wage jobs.

More and more analysts and commentators have caught to the fact that the Powers That Be are actively preparing for the next financial crisis with even more extreme measures.

These measures include:

1)   Bank bail-ins

2)   Cash Bans

3)   NIRP

As we’ve been noting since 2013, the template for this process was first laid out in Europe, specifically in Cyprus. With that in mind, it’s worth remembering just how it played out there.

The quick timeline for what happened in Cyprus is as follows: