Authored by Steve Keen via Forbes.com,
Janet Yellen has been reported by Reuters as saying in London yesterday that “she does not believe that there will be a run on the banking system at least as long as she lives”:
It's deja vu all over again in Sintra.
Yesterday, Draghi sent EUR and Bund yields surging on his 'hawkish' comments, which he was forced to talk back just over an hour ago, and today the confusion is back and it is the UK's turn as Bank of England governor Carney just hinted that the removal of stimulus is likely to become necessary, reversing on his own dovish stance unveiled just last week.
The section in question is the following (his full speech is here)):
By Bill Blain of Mint Partners, Blain’s Morning Porridge – June 28th 2017
Uncertainty, confusion, a Tech-sell off.. but are things as bad as they seem?
“Now I got mortgages and homes, I got stiffness in my bones, ain’t no beauty queens in this locality…”
As we reach towards month end and the half-year, markets do not feel like they are in particularly solid territory. Lots of uncertainty out there. Relax. Never as bad as you think, but it helps to understand what is really going on. Noise, and lots of it.
Yesterday morning we discussed the sudden crashes amid 17 small cap Hong Kong firms, which collectively lost over $6 billion in market cap, on what we dubbed was a marketwide margin call, as confidence in the entire sector vaporized instantly, sending the small cap Growth Enterprise Market (GEM) plunging by over 9%, with some stocks plunging over 90%. Quoted by Bloomberg, Francis Lun, the CEO of HK's Geo Securities said “we’re seeing a domino effect; all the companies in the same network got cut.