The business media is clamoring to post headlines designed to talk capital flows back into risk markets this morning. So far it is not working. It is not that economic news has suddenly become dramatically worse. The global economy has been weakening for the past three years, and pretty dramatically over the past 10 months. The problem is that undue faith in the magic of central bankers has encouraged many to whistle past the graveyard of contracting world demand. The gaping disconnect between stock prices and economic reality, has now set markets up for a period of profound disappointment. All best case scenarios have been fully priced in. And by best case, risk traders mean increasing monetary stimulus for evermore. Now anything less than best case is disappointing–the plight of over-promising.
Cory’s Chart Corner
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different.
h/t Jessie Felder
about 19 hours ago
- Very impressive...however, given we're a consumption led economy, robots will become just another channel of wealth… https://t.co/OcCREIZbuL
about 22 hours ago
- What determines an inverted yield curve w/QE distortions and a short end at 1.25%...does the 10 yr really have to g… https://t.co/9NEwz1H25x
about 3 days ago
- Boom-Bust repeat. History calls B.S on "it's different this time", it's always different. h/t Jessie Felder
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