Authored by Michael Lebowitz via 720Global.com,
The amount of monetary stimulus increasingly imposed on the financial system creates false signals about the economy’s true growth rate, causing a vast misallocation of capital, impaired productivity and weakened economic activity.
To help quantify the amount of stimulus, please consider the graph below.
Data Courtesy: Federal Reserve
Federal Reserve (Fed) stimulus comes in two forms as shown above.
For today's stock market recap, see yesterday!
In a comedic case of deja vu, somebody flicked the "DUMP VIX, BUY NASDAQ" swicth at exactly the moment US equity markets opened...
Authored by Charles Hugh Smith via OfTwoMinds blog,
That's the problem with fragility: everything looks fine on the surface until a crisis applies pressure. Then the whole rickety contraption collapses in a heap..
Authored by Mohamed El-Erian via Bloomberg.com,
Its status has been eroded by unconventional monetary policy and cryptocurrencies.
Update: Following Trump's Springfield, MO speech, Treasury Secratary Steve Mnuchin issued the following statement which, much like the Presidnet's speech, calls for more jobs, higher wages, higher GDP growth, sugar, spice and everything nice....yet provides absolutely no details on how to accomplish any of it.