Business

The macro-economic climate is “about as good as it is going to get,” according to a new economic outlook from PIMCO, with  Joachim Fels and Andrew Balls warning that "the last time a similar combination prevailed was in 2006 - and that didn’t end well."

Via PIMCO,

As Good As It Gets

It’s easy to get lulled into complacency by synchronized global growth, easy financial conditions and super-low economic and financial market volatility.

Today in Small Caps...

SPOTTED: Chasing the $RUT pic.twitter.com/aXwW7pfHG2

— Sven Henrich (@NorthmanTrader) September 27, 2017

Small Caps exploded over 2% higher - the biggest gain since the election - on Trump Tax hype... (we note that marketd di roll over a little once Trump began speaking)

(NOTE - today was the biggest short-squeeze in 2 months)

We have written frequently over the past couple of weeks about the disastrous public pension funds in Kentucky that are anywhere from $42 - $84 billion underfunded, depending on which discount rate you feel inclined to use. As we've argued before, these pensions, like the ones in Illinois and other states, are so hopelessly underfunded that they haven't a prayer of ever again being made whole.

Moments from now President Trump is expected to the take the stage at the Indiana State Fair to 'unveil' a tax plan that was leaked by someone in or around his administration hours ago...which we suspect is somewhat more anticlimactic than he might have hoped.  In any event, earlier this morning we covered the details of Trump's plan to 'make taxes great again' in a post entitled "Here Is The Leaked Trump Tax Plan."

With the Fed finally admitting it is confused by the "mystery" of inflation, it has also become painfully clear how perplexed it is by the biggest asset bubble in history that the Fed and its central bank peers have blown. But don't call it a humorless bubble.