Sovereign Debt

Futures Drop As ECB Confusion Persists, Dollar Rises To Seven Month High; Yuan Plunges

Asian stocks and S&P futures fall modestly and European shares are little changed as traders digested the surprising reticence from yesterday's ECB meeting. The dollar jumped to 7 month highs, pressuring EM currencies and pushing the euro to its weakest level since March and below the Brexit lows, after Mario Draghi shut down talk of tapering, while the Yuan dropped to the lowest since 2010.

Brace Yourself For The Quadrillion-Dollar Reckoning

"...debt is simply everywhere, at least to the extent we can see and measure it. Corporate and sovereign debt, of both the developed world and emerging market varieties, are at record levels. China’s debts certainly add to that record but who really knows to what extent? It’s the ultimate black box of leverage on Planet Earth... You cannot NOT worry about the Fed in this world...The simple truth is ending reinvestment would bring the bond market to its knees.

As Gold Crashes, Gartman Has A Theory What Is Behind It

"Tuesday’s sell-off did look like liquidation rather than fundamentally warranted selling. This view is further supported by the fact that the open interest in the COMEX futures has fallen by more than 4% this week, suggestive strongly of forced liquidation and a throwing up of the hands… and of the stuff in one’s stomach."

US Futures Pressured By European Weakness; Oil Flat, Dollar Rises

For the fourth day in a row, US traders arrive at their desks with US equity futures largely rangebound if with a modestly heavy bias, pressured by some recent weakness in European stocks, where DB continues to post modest gains following yesterday's report that Germany is pursuing "discrete talks" over the fate of the German lender. Oil has regained earlier losses following comments by Algeria's oil minister who said that OPEC could cut 1% more than agreed upon while sterling continues to slide on growing concerns of a "hard Brexit."

Gartman On The Gold Carnage: "We Have Wounds To Lick And Heal"

"Do we think gold is overdone on the downside; yes, we do indeed, but so much technical damage has been wrought that any bounces toward $1292-$1297 will prove to be formidable resistance on a first bounce. For now, we have wounds to lick and heal."

Bill Blain: "If The ECB’s Bond Buying Largesse Is Over Get Set For The European Debt Crisis Part Two"

With the rumor, or at least trial balloon, of an ECB taper rocking bond markets and pushing EM equities lower, a dire forecast has emerged from Mint Partners' head of capital markets Bill Blain who in his latest note warns that "if the ECB’s trillion-billion bond buying largesse is over – then get set for the European sovereign debt crisis Part Two as markets focus back on debt fundamentals."

Kuroda Ruined His Chance Of A Second Term By Doing "Stupid Things", Abe Advisor Says

BOJ governor Kuroda has ruined his chances of getting a second full term, according to Nobuyuki Nakahara, who has advised the prime minister on the economy and was an intellectual father of Japan's QE. "They are trying to clean up the mess of negative rates. It’s impossible to do a stupid thing like keeping the yield curve under government control."

How Much Longer Will Investors Trust The Central Banks?

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.

Are You Ready For The Next Recession?

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!).

On Europe's Train Wreck Of Monetarist Absurdity

"A mudslide off this mountain of debt will have to happen in order to correct the excesses built up in recent years. There is too much liquidity mass built into the markets devoid of investment demand, and too weak of an economy holding it."

Michael Pento: "These Are The Most Dangerous Markets I've Ever Witnessed"

"...anybody with any objective, critical, independent mind can tell this is an unsustainable, very ephemeral rally in stocks that has occurred since 2009. And when the bond market breaks, when that bubble bursts, it will wipe out every asset -- everything will collapse together -- because everything is geared off of that so-called 'risk free' rate of return."