Business

Having concluded that Draghi's speech was on the margin dovish, not least of all due to Draghi's parting shot at Euro bulls, saying that "nothing will derail ECB's will to deliver inflation", a refreshed version of "Whatever it takes", the EURUSD has since slumped from session highs, and was back under 1.20, in fact filling the entire post-Draghi gap, driven in part by the release of the ECB's currency forecasts, which are far below the spot rate going all the way to 2019.

This is what the ECB now forecasts:

The market bubble has become so massive that even Wall Street is nervous.

To be clear, investment banks do best when stocks are in a bull market. And they love bubbles because it means more M&A, IPOs, dead offerings, stock issuance and other deals from which they derive their revenues.

So for Wall Street CEOs to openly start warning that the market is in a bubble… they have to be really REALLY nervous about what they’re seeing... and know that a stock market crash is coming

On that note this week, not one but TWO major bank CEOs warned about the markets.

S&P futures are flat, still spooked by the WSJ's report that Gary Cohn will not be the next Fed chair, while both European stocks and Asian shares gain in a overnight session on edge in which everyone is looking forward to today's main risk event: the ECB meeting and Draghi press conference due in under two hours. The dollar continued to weaken against most G-10 peers as tensions over North Korea, concerns over Stan Fischer's resignation and the increasingly cloudy Fed outlook outweighed positive sentiment from the US debt ceiling extension.

While the world has grown used to The Pope sticking his papal nose in the world's business ("horrrific" borders, "grave risks" of libertarians, and the virtues of socialism); Britain's most senior clergyman, the Archbishop of Canterbury, has now decided that it is not enough to preach His word, but better to use his position of influence and adulation to discuss what's wrong with capitalism...

The British economic model needs fundamental reform.

 

So what do you do when the bubbly market for your exorbitantly priced New York City commercial real estate collapses by over 50% in two years?  Well, you lever up, of course. 

As Bloomberg notes this morning, the 'smart money' at U.S. banking institutions are tripping over themselves to throw money at commercial real estate projects all while 'dumb money' buyers have completely dried up.