Business

As we noted yesterday, the world’s Central Banks have begun sending signals that the price of money in the financial system (bond yields) is going to be rising.

Why is this a big deal?

Because globally the world has packed on $68 TRILLION in debt since 2007. And ALL of this was issued based on the assumption that bond yields would be remaining at or near record lows.

The bad news?

They’re not. Already we’re beginning to see bond yields RISE.

So much for the long anticipated debut of the food delivery IPO, with the big customer churn problem and even bigger cash flow problem.

One day after the company IPOed at a downward revised price (seeing its market cap at $1.9 billion, below its last private round valuation of $2 billion) and broke for trading into the green, only to close at exactly $10.00, Red Blue Apron has now tumbled to $9.50, down 5% from its IPO price just yesterday as the underwriters have given up on protecting the $10 IPO price... and the company.

Despite modestly beating expectations, UMich consumer sentiment for June dropped to 95.1 - the lowest since Nov 2016 - led by a collapse in 'hope' for the future.

Inflation expectations for the medium-term fell very modestly but both short- and medium-term remain near record lows.

Even as the rest of the 'soft' survey data catches down to 'hard' data's ugly reality...

Someone or something in Chicago is exuberantly celebrating Trumpmania as the city collapses under a hail of bullets.

Beating expectations by 7 standard deviations, June PMI spike to 65.7 - the highest since May 2014.

This is the fifth consecutive increase in busines confidence with new orders at their highest since May 2014 and order backlogs spiking to their highest since July 1994.

Remember when - for years and years after the grand, global QE experiment started - any suggestion that central bankers are the primary cause behind global wealth inequality, and thus directly responsible for such political outcomes as Brexit and Trump - was branded as a conspiracy theory  by bloggers living in their parents' basement? We do, because we were accused over and over of just that (our position on the Fed and other central banks should be familiar to all by now).