Submitted by Robert Berke via OilPrice.com,
As reported around the world, Russia’s decision to greatly reduce its military presence in Syria, coming as it did with little warning, has left the world struggling for explanations.
It's easy...
But, before we start, some context for just how different it is this time... if The Dow is able to hold this gain through the end of the quarter, it will be the largest quarterly comeback in the history of stocks...
On Monday, in “JPM Looks At Draghi’s ‘Package,’ Finds It ‘Solid’ But Underwhelming,” we noted that according to Mislav Matejka, investors would do well to fade the ECB’s latest attempt to jumpstart inflation, growth, and of course asset prices with Draghi's version of a Keynesian kitchen sink.
“Overall, we believe the latest package is far from a game changer,” Matejka opined.
It was just over a year ago when we first observed a troubling development in the global currency funding arena: the global dollar funding shortage had come back after a 7 year hiatus, and "this time it was different."
The reason for this observations was predicated in the collapse of USD basis swaps. This is what HPM said at the time:
Nikkei futures rallied post-Fed into the Japanese open (despite weakness in USDJPY) and then when trade data struck (and exposed the utter failure of competitive devaluation), everything went into freefall. The Nikkei crashed 700 points and USDJPY plunged to its lowest since QQE2...
.... which prompted us to summon the cartoon character at the head of the BOJ as follows:
YEN CLIMBS PAST 110.99 PER DOLLAR TO STRONGEST SINCE OCT., 2014. Time for Peter Panic