Green Shoots & Leaves
Fear not, the world is still perfect. The economy is humming along. Everything is fine. Sure, the market seems like it is tanking, but that is only until the muppets get back from lunch and realize how great things are. Then, they will take one final sip of their skinny cinnamon dolce latte, and hit the buy button until their nails fall off their perfectly manicured digits.
BUY BUY BUY.
Bye Bye Bye.
Many of our heroic “story stocks” are getting totally destroyed. Yet not much has changed: Their business model, if any, is the same; they’re still losing money hand over fist; and they’re still trotting out the same custom-designed metrics that seduced analysts and the media once upon a time. But it’s not working anymore.
Inside The Red Ponzi——Why China’s $28 Trillion Debt Mountain Is Scary
Despite the propaganda from the media and happy talk from the Liar-in-Chief, the country is currently in a recession and the Fed has no ammo to fake another recovery. We are going down and going down hard. When 70% of your economy is based on Americans buying shit they don’t need from China on credit cards, a dramatic slowdown in consumer spending equals recession. When sales actually fall from November to December during the holiday season, you are in recession. We’ve arrived.
U.S.-based stock mutual funds and exchange-traded funds lost $9.0 billion to withdrawals during a week that saw U.S. stocks continue one of their worst starts to a new year amid fears of a further fall in oil prices.
A great shaking is coming to the global economy, and the pain is going to be unimaginable. So let us enjoy every single day of relative “normalcy” while we still can, because there aren’t too many of them left.
BHP Billiton has written down the value of its US shale assets by $7.2bn (£5bn) as a result of the dive in oil prices.
Remember when the Fed’s dots – less than a month ago – suggested there would be 4 rate hikes in 2016? Ah, the memories. Well, you can not only forget that (now that the market is estimating the next rate hike will come in October if ever), but it appears that the Fed will follow Kocherlakota’s advice after all and not only cut rates (the possibility of a January rate cut now is 10%), but will pass go, and collect negative rates:
The Mayor sees that the market is down over 500 points right now (noonish.) Don’t worry, it’s not the time to panic. If anything, right now is the time to be *cautiously optimistic.”