Global Economy

Fear The Federal Reserve Meeting Minutes

Oh how the Fed must long for the days of yore, when it was feasible to make policy in a domestic vacuum. But the reality of it is, if the rest of the world’s economic vulnerabilities and systemic fault lines are laid bare by this December’s hike, Fed officials’ words won’t amount to much more than trash talk.

Muni-Massacre Leaves Bonds Most-Oversold Ever

US Municipal Bond yields have now risen for 10 straight days, spiking from 1.72% to 2.34% today - the highest since July 2015. This crash has now moved munis to the most-oversold-ever as the group suffers the biggest fund outflows since 2013's taper tantrum.

Obstacles To Trump's "Growth" Plans

Mr. Trump rather unfortunately may find that his chief task will not be the management of this Great Re-orientation, but more prosaically, fending off the headwinds which he will face as he hauls on the tiller of the economy. In short, there is a real prospect that his ambitious economic “remake” may well be prematurely punctured by financial crisis. These headwinds will not be of his making, and for the main part, represent the accumulation of an earlier monetary doctrine which will fetter the President-elect into a small corner from which any chosen exit will carry adverse implications.

As TPP Dies, Asian Nations Salute Their New "Free Trade" Leader: China

Overnight China got a present when Trump announced that the TPP is dead. That's all Beijing needed to hear and this morning China said it hoped to conclude an Asia-wide trade pact as soon as possible, in "a sign of Beijing’s intent to broaden its regional influence amid the apparent collapse of the U.S.-backed Trans-Pacific Partnership." What is surprising is how fast most Asian nations are willing to embrace their new "free-trade" overlord.

World Suffers From Trump Shell Shock - Here's What Will Happen Next

"Even if Trump is a legitimate anti-establishment conservative, his entry into the Oval Office will seal the deal on the economic collapse, and will serve the globalists well. The international banks need only pull the plug on any remaining life support to the existing market system and allow it to fully implode, all while blaming Trump and his conservative supporters."

RBC Market Commentary: "Under The Hood, It's Not Good"

"There is clearly a ‘factor crowding’ issue at play here (as there was at start of year) — whether it’s ‘style’ or previously mentioned ‘sector leans’ or ‘macro input’ — these market-neutral strategies are not supposed to see moves like this over multiple days (sorted by 5-day % return), let alone in a single day"