Blain's Morning Porridge, Submitted by Bill Blain of Mint Partners
Why we should be very nervous about corporate bonds
“Before the fiddlers have fled, before they ask us to pay for the bill and while we still have the chance.…”
It appears the opening of the US equity market is an implicitly bullish event now as USDJPY was kneejerked higher, igniting momentum algos and sending The Dow green... because that's all that matters!
USDJPY...
Nasdaq, Dow, and S&P all green...
Now that those stops have been run - what happens next?
Speaking in at a conference in Tokyo, the head of the Philly Fed, Patrick Harker said that he has penciled in a further rate hike by the Fed at its December meeting on 12-13 December 2017. However, his use of the word “lightly” suggested that there may be a degree of wavering on his part. According to Reuters.
A Federal Reserve official said on Monday he expects to back an interest rate hike next month despite caution over low-inflation, as U.S. central bank policy needs to be positioned to deal with future economic shocks.
The pre-market buyers of last resort, hoping that GE just kitchen-sinked by slashing its dividend by 50%... are in trouble.
Everything was fine until CEO Flannery started speaking...
Authored by Mike Shedlock via www.themaven.net/mishtalk,
Most defined benefit pension plans are nothing but Ponzi schemes. Plans are now unraveling because of demographics. An increasing number of retirees, needing untenable returns, are supported by fewer and fewer people putting money in the system. Democrats sponsored a bailout scheme. Will it pass?
Pension and Investments reports Sen. Sherrod Brown to Unveil Multiemployer Loan Program Legislation.