As we warned yesterday - no, Deutsche Bank is not fixed...
So, no, Deutsche Bank (and its $64 trilion derivatives book) is not "fixed" - far from it...
You Are Here...
US Financial stocks are holding "Dimon is buying" gains but their credit is leaking wider this morning.
Judging by all the bearish commentary unleashed in recent weeks, one would think that the S&P has lost half of its gains since the artificial central-bank driven levitation was unleashed in 2009. Instead it is just over 10% below its all time highs. Still, for many the lack of the low-volume, low-vol levitation they have grown to love so much over the past 7 years, is making them nervous.
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
If we collectively choose wishful thinking, catastrophic consequences are guaranteed.
Wishful thinking has been an integral driver of the "recovery" 2009-2015: asset bubbles aren't bubbles, central bank policies are brilliantly successful, unemployment has dropped to levels of full employment, and so on.
The problems with wishful thinking that I describe in my book A Radically Beneficial World are becoming more apparent by the day:
Something strange is going on. Heading into the Friday open, in his daily letter to "clients", Dennis Gartman said that in his "retirement portfolio" he was short the market and long gold, to wit:
