Our liquidity-drunk “markets” remain over-priced due to the chronic intervention of the global central banking cartel, which has demonstrated over and over again that it won't tolerate even the slightest drop in asset prices. Once faith in central banks is lost, their power to delay the deflationary day of reckoning goes with it. The stupendous amount of debt they have helped heap onto the financial system since 2008 will start going into default and the only question that will matter is: Who is going to eat the losses?
Tiger cub Robert Citrone said “we believe we are in the midst of the market correction we have been expecting," adding “It will likely persist over the next 3-4 months and be the largest correction since the 2008 crisis."
"In order to insulate monetary policy from short-term political pressures and I can say, emphatically that partisan politics plays no role in our decisions about the appropriate stance of monetary policy.... We do not discuss politics at our meetings and we do not take politics into account in our decisions."
Currently no-one expects the Fed to hike today and it probably won’t. It is definitely possible though that the FOMC statement will contain a strong hint regarding a likely rate hike in November or December, since the Fed for some reason no longer wants to surprise markets. Such an announcement could well have the same effect on the markets as an actual hike though.
The good news for economic prosperity and freedom is that the failure of the grand experimenters next time to ignite asset price inflation early on in any incipient economic upturn might lead to their dismissal (if not effected earlier!).
"I think what's going on in China is troubling ... some of the valuations there are really quite extraordinary... We've double checked these numbers about seven times, because I found them quite hard to believe."
Wondering why the stock and bond markets are tumbling simultaneously? Confused by the market's apparent inability to follow the mainstream media's narrative that higher rates are good for markets? Wonder no longer - the answer, as we have previously detailed - is the collapse in so-called "risk-parity" funds that force leveraged long positions in equity and bond markets to be unwound en masse.
"Despite Norwegian mainstream media and political establishment support for Hillary Clinton (They also supported Mark Rubio and Bernie Sanders when they were running), I would like to apologize for our politicians and voice my support for Trump. I believe that Americans need to think about what is at stake from lifelong socialists’ perspective. Despite what people read about Norway being the best place to live, it comes with a price."
I am in no way suggesting that Europe will break apart tomorrow. But the fact the ECB has admitted that even its extraordinary policies have failed to the point that it won’t achieve its goals for a decade indicates it’s the beginning of the end.