The euro “might start to unravel” if Deutsche Bank collapses according to respected financial journalist, Matthew Lynn. “It all has a very 2008 feel to it …” he warns and outlines his and our growing concerns about Deutsche Bank.
Citi said that its "base case is for a Clinton victory and mostly continuity in policies, which would leave U.S. and global growth expectations relatively unchanged,” while describing the U.S. contest as “increasingly bizarre.” Bizarre or not, earlier this morning Morgan Stanley, whose base case is still a Clinton victory has presented several "contingency planning" scenarios in case Trump does win.
It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.
We hinted earlier and now Saudi Arabia has confirmed that it "doesn't expect any decision" next week when oil producers meet in Algiers. Oil's reaction was swift with WTI tumbling to a $44 handle very quickly. Losses extended when The Fed confirmed its crackdown on bank commodity holdings.
Gold was up 1.5% and silver surged 3.1% yesterday after Janet Yellen again failed to raise rates from record lows at 0.25%. The Fed maintained ultra loose monetary policies which are again creating stock and bond market bubbles in the U.S. and other countries.