The Top-Down "Un-Reality"

Tyler Durden's picture

US equities closed the week at new all-time highs - and yay-verily the world of long-only asset-gethering talking heads celebrated this as in some way confirming their long-held 'belief' that the US is the cleanest dirty shirt and where-else are you going to invest (you dummy!!). Of course, reality is far different - as Seth Klarman noted, if it's all so great then why did Bernanke need to stick-save us again this week? The bottom-line from the top-down is that the US is in fact the 2nd worst performing macro-economy of the year of the majors (2nd only to China) compared to expectations. What the following charts indicate though, is an interesting divergence between macro-reality and market-perception that is evident among the nations of the world that print money to save themselves... and those that are not (yet)...

 

NOT the cleanest dirty-shirt - not even close...

 

But let's dig a little deeper... here are three regions that are NOT printing money... seems like macro and market are tending to stay together reflecting some reality...

 

and those nations that ARE printing money...

 

Notice any difference?

 

Still a believer that it will all be ok?

 

Charts: Bloomberg and @Not_Jim_Cramer

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starman's picture

And the WORLD wide ponzi scheme continues into where no man has gone before. more popcorn please

derek_vineyard's picture

im hoping i can afford popcorn after this resets

aint no fortunate son's picture

more crocodile-on-the-mara river charts for the money printers - tick tick tick, who gets eaten in the end?

alphamentalist's picture

this continues until the schlong-only buy-and-hold pretend-to-add-alpha crowd sees redemptions and/or the levered crowd sees the need to delever. they can't continue the scam of gathering assets and mindlessly buying beta unless they avoid holding much cash. the minute they suggest cash is a better alternative they see redemptions. they will happily drive you off a cliff to avoid that.

CreativeDestructor's picture

This a proof that talk is not cheap... what else do you want?

vote_libertarian_party's picture

....aaaaand US futures are up (pre China GDP announcement)

slimething's picture

People really do have short memories. The same co-workers who lost 40% in 2008 (I got out in 2007) on their 401k are telling me I am a fool for going to safe mode in April this year. They think the Dow is going to give another 10-20% in this bull run. It doesn't matter if it's QE driving it or not, they say the time is right for the taking. Eat, drink and be merry for tomorrow we dive.

Where'd I put that Magic 8 Ball......

 

 

 

 

 

 

 

Atomizer's picture

When Ben can no longer support the US Labor Union dependency .. It becomes a reversal in eliminating labor issues and legacy costs. When they shipped business overseas, and jacked up the unemployment levels. Fredo sitting in the boat becomes the target of futuristic who think they can sell new globalization lies.

Big Black - Ready Men 

Blows kisses to my favorite Think Tank.

mayhem_korner's picture

 

 

I think the taper threat qualifies as a break in QE (since there will never be another actual moratorium on "asset"1 purchases).  So I'm positing that Ben is now in QE5TM

1(BTW, is "toxic asset" a contradiction in terms...?)

Abi Normal's picture

Seems we are close to the big R time...

 

Bill_Mitchell_AEF's picture

earnings slump, bond crash, stock crash, bank crisis, 401k/IRA redefined as treasury packing ANNUITIES and then recession becomes full blown depression....

 

soopy's picture

Oh well, a broken blog can still be right twice every...5 years?