Business

Ealier today, we quoted John Plassard, senior equity-sales trader at Mirabaud Securities LLP in Geneva, who explained the surge in global risk as follows: "The Chinese market didn’t react as bad as we feared and with the weak export data there is some big hope that he central banks will react quite fast... It’s a mix of hope of intervention from the Asian central bank, short squeeze and also a relief in some energy and banking sectors, the most shorted sectors."

Ron Paul

Last week US stock markets tumbled yet again, leaving the Dow Jones index down almost 1500 points for the year. In fact, most major world markets are in negative territory this year. There are many Wall Street cheerleaders who are trying to say that this is just a technical correction, that the bottom is near, and that everything will be getting better soon. They are ignoring the real message the markets are trying to send: you cannot print your way to prosperity.

• China’s Yuan Makes Largest Gain Since 2005 on PBOC Cue (WSJ)
• Japan's Nikkei soars over 7%, for its biggest gain since 2008 (BBG)
• Global shares rise as firmer Chinese yuan eases deflation fears (Reuters)
• Banks' Surge Takes Europe's Stock Rally Into 2nd Day; HSBC Rises (BBG)
• Oil extends rally on prospects OPEC could act to counter low prices (Reuters)
• Europe's Higher-Yielding Bonds Benefit as Global Turmoil Eases (BBG)
• Republicans gear up for Supreme Court battle after Scalia's death (Reuters)

Bad news is once again good news... for stocks that is. 

After a month and a half of markets unable to decide if they should buy or sell on ugly data, over the weekend, People’s Bank of China Governor Zhou Xiaochuan expressed faith in the economy, and said there is no basis for further Yuan devaluation, something the PBOC has said consistently over the past year, despite two sharp devaluation episodes.

In his inimitable manner, Abraham Gulowitz unleashes 18 new pages of "all the charts you can eat" to expose the ugly reality of what is going on everywhere.

Trust Busters...