Real estate

Fed's Lockhart Non-Committal On Rate Hike In September; Sees No Bubbles In Any Asset Markets

First out of the gate among the Fed speakers today (before they go dark) is Dennis Lockhart (non-voter) commenting positively on the economy and jobs, shrugging off the recently terrible ISM data stating "I believe the economy is sustaining sufficient momentum to substantially achieve the committee's monetary policy objectives in an acceptable medium-term time horizon," but questioned inflation still running below mandate.

"Global Market Rout" - Bond Selloff Snowballs Into Stock Liquidations On "Stimulus Pullback" Fears

With traders in the US arriving at their desks, the global selling appears to be accelerating and as Bloomberg notes, "a selloff in fixed income is starting to snowball into a global market rout" driven by what Reuters dubbed "growing concerns that global central banks' commitment to the post-crisis orthodoxy of super-low interest rates and asset purchase programs may be waning."

Time To Get Real, Part 2: "We Need Their Drugs"

On the current path, the world is experiencing the largest artificial asset allocation in modern history, one that is driven by a misguided interest rate regime that has lost its efficacy and is producing more harm than good. Yet the fear of withdrawal pain is keeping central bankers from doing the inevitable: Quit. The response is predictable: "I need the drugs!"

"If Everything's Going So Great, How Come I'm Not?"

Whether it's struggling to keep up with the rising cost of living, a 0% return on savings, working longer hours while real wages stagnate, scrimping to pay back education loans, despairing at the abuses of power in our banking and political systems, or lamenting the loss of nourishing social interaction in our increasingly isolated and digital lifestyle - most "regular" people find their own personal experiences to be at odds with the rosy "Everything is awesome!" narrative trumpeted by our media.

Meanwhile, The Democrats Are Getting Worried

Given that Donald Trump is the 'devil incarnate' if one listens to any of the Clinton surrogates, Democrats are growing more and more concerned as Hillary's 'insurmountable' lead has collapsed to its lowest since the conventions. With her campaign reportedly warning media to 'tread carefully' on health concerns, The Hill reports anxious Democratic senators are urging Clinton to "be more open, show your soul, focus on the economy and talk about blue-collar jobs."

Frontrunning: September 9

  • German jitters weigh on stocks, ECB doubts lift yields (Reuters)
  • Chinese Billionaire Linked to Giant Aluminum Stockpile in Mexican Desert (WSJ)
  • Monte dei Paschi CEO to be replaced as cash call looms (Reuters)
  • German exports plummet in July, hit trade surplus (MW)
  • North Korea conducts fifth and largest nuclear test (Reuters)
  • Hedge Fund and Cybersecurity Firm Team Up to Short-Sell Device Maker (NYT)

Stock Market Bubble Will Pop, Social Mood Will Get Extremely Ugly

Buying equities will put additional pressure on corporate CEOs to cut expenses and to postpone investments, fostering even greater Main Street resentment toward the financial elite. Consumer confidence won’t rise as consumption and economic growth stagnate. Having so clearly sided with owners of capital, rather than the employees of capital, global central banks are likely to become an easy target for populist ire.