On Friday, we brought you the 4 “D’s” of deflationary doom from BofA’s Michael Hartnett.
For those who missed it, Hartnett says the reason “an almost manic monetary policy been so ineffective at generating a broad, sustained economic recovery,” is that the following four secular deflationary factors are conspiring to impede a robust recovery:
Submitted by Jeffrey Snider via Alhambra Investment Partners,
It makes for quite the juxtaposition, though perhaps not so jarring given that global banks are still enormous and disparate operations. On the one hand, Citigroup’s CEO was eminently confident from within the confines of Davos and the status quo:
Back in August we explained why the headline figures for EM FX reserves paint an incomplete picture with regard to the UST liquidation among commodity producers and emerging market reserve managers.
Submitted by Pater Tenebrarum via Acting-Man.com,
Let’s Do More of What Doesn’t Work
It is the Keynesian mantra: the fact that the policies recommended by Keynesians and monetarists, i.e., deficit spending and money printing, routinely fail to bring about the desired results is not seen as proof that they simply don’t work. It is regarded as evidence that there hasn’t been enough spending and printing yet.
BoJ governor Haruhiko “Fly” Kuroda: is that a windshield I’m seeing?
While on any given day, stocks may tumble or surge as marginal buyers send increasingly illiquid indices lower or higher on ever lower volume, a more important question is what is taking place below the surface: are large holders looking to offload large exposure (by selling), or vice versa.
For the answer we go to Bank of America, which has models to measure precisely this.