Two weeks ago, we reported that even as U.S. lenders were professing to their investors that there is no risks with their energy exposure and that they are comfortably reserved for any potential losses, they were reducing their unfunded (and total) exposure to oil and gas exploration companies due to balance sheet, default and contagion concerns.
Submitted by Justin King via TheAntiMedia.org,
Earlier today, Goldman's global macro strategist team led by Noah Weisberger released a report titled "Markets do not "Take it Easy" to start the year", which had one very disturbing slide, i.e., "Exhibit 8." - disturbing, because it showed that according to Goldman's Current Activity Indicator, the US was effectively in recession; certainly disturbing enough for us to immediately tweet it with just one comment: "Oops":
Oops from GS pic.twitter.com/jz0LCculCQ
Submitted by David Stockman via Contra Corner blog,
The robo-machines are now having a grand old time hazing the August lows at 1870 on the S&P, and may succeed in ginning up another dead-cat bounce or two. But this market is going down for the count owing to a perfect storm.
It all started early last night when the front month oil contract dipped below $28 giving a taste of what was to come. It was all downhill from there.
First Chinese stocks ended the recent ramp higher, with the Shanghai Composite closing down 1% back under 3000, then Japan's rout accelerated with both the Nikkei (-3.7%) and the Topix Index sinking into bear markets, both falling more than 20% from their 2015 highs.