Business

Earlier today we showed an amazing schematic courtesy of Citi's Matt King: if one includes the reserve liquidation by various EMs and SWF, and nets it against liquidity injections by DM central banks (and the PBOC), one gets a perfect quantitative, not just qualitative, walk-thru on how to trade markets: in other words one can measure, using high frequency data in real-time, just where markets should trade based on liquidity flows, and promptly profit from any arbitrage opportunities.

When even that bastion of statist groputhink and legacy conventional wisdom accuses China of fabricating its most important economic number, then surely some violently volatile event is in the immediate future as China's goalseeked cognitive dissonance is forced to reallign with reality in an event which even the bank that does god's work on earth implies is now overdue.

From Goldman's David Kostin:

Is "The Bear" back from the dead...

Source: Townhall.com

You decide... 

As the business cycle beats the centrally-planned committee's manipulation once again.

Yesterday we felt like a brief moment of gloating was deserved, when we noted that, based on the WSJ's reporting, the somber mood among Davos "prominent investors" and billionaires was "irritated, bordering on affronted, with what they say has been central-bank intervention that has gone on too long.... from this anecdotal sampling, at least, that has created growing distortions in nearly all asset prices—from stocks to bonds to real estate."

On Friday, we noted that at least some local businesses in Texas are sympathetic to the pitiable plight of the state’s beleaguered oil patch workers.

Houston-based Gramercy Cleaners on Richmond avenue, we observed, is demonstrating their compassion for the imploding energy sector by offering service discounts.