Business

It's a day ending in -day, which means it is time for another Jeff Gundlach fire sermon, as transcribed by Reuters. And while in his most recent address to the mortals the new bond king from DoubleLine focused on tremors in the bond market, predicting that "credit fund bankruptcies are coming," and that "the VIX needs to surge above 40 before a bottom can be made in the high-yield junk bond market", today he focused on a topic we have been covering all day, namely the collapse of faith in central bankers and the ascent of gold as a preferred asset class to paper money and bank deposits.

One of Britain’s biggest gold dealers has said it has taken record-day sales on Thursday amounting to £5.6 million, as traders have purchased record-amounts of gold in a panic amid fears that the world is on the brink of a huge financial crisis.  BullionByPost’s managing director Rob Halliday-Stein says that Thursday’s sales are the largest ever for the company. Telegraph.co.uk reports: “The bullion market has been building with interest since the end of last year but this morning things have gone bananas,” said Mr Halliday-Stein.

Market Psychology has swung from this...

To this...Losing SPY Religion

http://www.youtube.com/watch?v=if-UzXIQ5vw

And seemingly back.

*  *  *

First, it was The BoJ's utter collapse from omnipotence to impotence. Then came the collapse of The Fed's credibility in the short-term. And now, in the most egregious example of total central bank failure - the 'market' has priced out any chance of a rate hike through 2018... and in fact, there is now a greater chance of a rate-cut (than rate-hike) into 2017.

Based on the Eurodollar market...

And while some hoped that Janet would clear it all up in 2 days of testimony, she just made it worse:

Submitted by Jeffrey Snider via Alhambra Investment Partners,

Part 1 here...