Everything happening today is in some ways interconnected: popularity of ‘non-establishment’ political candidates; ineffectiveness of central bank policy in lifting inflation; economic pessimism; weak capital spending (from handcuffed capitalism); and angst due to perceptions of inequality.
Scotiabank's Guy Haselmann explains...
Via SchiffGold.com,
In his most recent Gold Videocast for SchiffGold, Albert K Lu interviewed John Rubino, founder of DollarCollapse.com. Rubino had a pretty compelling explanation for why there wasn’t a massive, sustained economic collapse a decade ago, and why he thinks it’s still lurking on the horizon.
In his latest note tited "The Calm before The Storm", Nomura's traditionally downcast Richard Koo is not too excited about the market's future prospects, in fact quite the opposite and makes the point that since QE was no game changer, not only is there no clear way out, but "the price for QE has yet to be paid."
What does that mean for risk assets:
US financials are tumbling after The Fed proposed a rule that would limit banks with $500 bln or more of assets from having net credit exposure to a “major counterparty” in excess of 15% of the lender’s tier 1 capital. Bloomberg reports that The Fed's governors plan to vote today on the proposal. The implications of this are significant in that it will force some banks to unwind exposures and delever against one another (most notably with potential affect the repo market which governs much of the liquidity transmission mechanisms).
"Uncertainty" exploded in January for The Fed, and after today's "great" (surging job gains) and "terrible" (plunging wages) jobs data (as well as surging current inflation and plunging inflation expectations), we can only imagine Yellen will be even more confused at March's meeting.
Source: @Not_Jim_Cramer
Time for a stock market selloff to force The Fed to back off its tightening bias once again...
With Dec rate hike odds now above 70%...