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Global Death Cross Accelerates As World Bank Slashes Growth

Tyler Durden's picture




 

The World Bank joined the hallowed ranks of the IMF and admitted it was clueless last night, slashing growth estimates for every developed and developing nation from Brazil to the US. The "bumpy start" as they called it merely exacerbated what is now becoming a dismal joke as the death cross of GDP growth expectations and world stock market valuations diverge in an ever more fragile manner.

 

 

 

And this after JPMorgan slashed US expectations...

 

 

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Wed, 06/11/2014 - 20:08 | 4846732 Australian Economist
Australian Economist's picture

What goes up must come upper?

Wed, 06/11/2014 - 20:23 | 4846785 DoChenRollingBearing
DoChenRollingBearing's picture

Tonight we go back in the USSA!  On arrival, just in time to watch our markets do whatever.  Or watch soccer.  

Hmm, tough choice picking which will give me a better nap...

Wed, 06/11/2014 - 20:45 | 4846872 john39
john39's picture

Jeez, should have killed growth years ago, that way the stock markets would be at least 2x higher than they are now

Wed, 06/11/2014 - 20:11 | 4846741 ebworthen
ebworthen's picture

The sequel to the 2007 blockbuster:

"Engineered Financial Collapse - Godzilla FED and Rodan Wall Street Destroy Main Street".

No hats, but free bottles of bubbles with wand for S&P 666.

Wed, 06/11/2014 - 20:12 | 4846748 enloe creek
enloe creek's picture

peak everything

Wed, 06/11/2014 - 20:13 | 4846753 DirkDiggler11
DirkDiggler11's picture

Another "Death Cross" , let me go place a buy order for 100,000 shares of SPXU at the bid. Gonna make tons of $$$ on THIS DEATH CROSS cause this one will be different than the 20 preceding death crosses over the last year.

The only Death Cross have been atop the graves of the poor bastards trying to short this market. I gave up that bad habit already ..

Wed, 06/11/2014 - 21:01 | 4846925 virgule
virgule's picture

I'm afraid this so-called death cross is a lot of BS:

They are measuring 2 different quantities on two different scales, plotted on the same graph. Depending on what the chosen origin points are, and the scale factor chosen for display, I can make this chart look anyway you'd like it to be.

This is one is designed to make you think there is a cross when in fact the odds are there isn't any such "crossing".

Wed, 06/11/2014 - 20:13 | 4846754 Savyindallas
Savyindallas's picture

Another 2008-2009 crash coming? This time followed by a real global depression and war? I look forward to the smart ass comments  (as in 2008-2009) that gloom and doomers are full of it and the S@P will hit 2200 by the end of next year and that all is well. I suppose it could, but these moronic cheerleaders will be proven to be disastrously wrong in the end. All is not well. The next year or two are perhaps the most dangerous and likely disastrous in the history of the world. That is my take.

Wed, 06/11/2014 - 20:15 | 4846764 BandGap
BandGap's picture

You spelled savvy wrong.

Party on.

Wed, 06/11/2014 - 22:22 | 4847205 samsara
samsara's picture

No, not a "2008" I think.

Sovereign Default or Revaluation.

But when it goes this time it will be wall to wall and deep.

The whole world is in trouble.
It's like that string of mountain climbers, Ya got a couple 300 pound guys, a 250 pounder next, then the 200's and so on.

If one goes, It starts to build on itself like dominos. Imagine the global shipping? Imagine Letters of Credit could not be agreed on by various financial institutions that may be going under. Imagine those supplies that you can now get shipped overnight.

Like a power grid failure, each transformer trips another one , and on till the whole grid is down.

Wed, 06/11/2014 - 20:14 | 4846756 Rehab Willie
Rehab Willie's picture

popcorn time

Wed, 06/11/2014 - 20:21 | 4846779 TeamDepends
TeamDepends's picture

Thanks for your support, but that was a crazy gig and not in a good way.  Cher refused to go onstage once it was revealed it was Sonny outside.  Anderson Cooper was walking around interrogating people for no reason (there was no crew/he had no microphone). The last straw for us occurred when we heard Planned Parenthood was handing out brown acid...

Wed, 06/11/2014 - 20:27 | 4846787 Dr. Engali
Dr. Engali's picture

Sooooooo... Continue to BTFD and turn profits into tangible assets until the 'market' vaporizes in overnight trading then duck and cover for WWIII... Got it.

Wed, 06/11/2014 - 20:35 | 4846839 stant
stant's picture

Yep ,that's what it said , just not as eloquent

Wed, 06/11/2014 - 20:27 | 4846803 TheRideNeverEnds
TheRideNeverEnds's picture

Don't get me wrong, I am no Goldman Sachs technician but I have to say that top chart seems to have a strong inverse correlation. The worse GDP gets the higher the market goes.  

 

That said, looking around things are going to shit with the global economy so that means only one thing: E-Minis to the moon, year end price target revised higher; S&P 2200.

Wed, 06/11/2014 - 20:33 | 4846821 tommyb34
tommyb34's picture

Yea, like fundamentals have anything to do with the stock market.  Death cross =  ES +10, and I'll buy another round of beers with my SPY gains.

Wed, 06/11/2014 - 20:33 | 4846830 booboo
booboo's picture

lots of prep and Preparation H, everyone is going to get double fisted. Short bets will not be honored since there are multiple (and I mean MULTIPLE) claims on assets. Chinese metal warehouse issues are just the tip of the 900 pound elephants nose in the gorilla tent and it don't take a rocket surgeon to figure that out. Did I get that right?

 

Wed, 06/11/2014 - 20:35 | 4846833 Wait What
Wait What's picture

you know shit's getting down right scary when even Joe LaVorgna is telling the Fed it's time to raise rates. then again, given his track record, even that would somehow be bullish.

...and a Q2 negative GDP print would be even more bullish-er, cuz, as usual, we'll get it all back and then some in the 2nd half.

Wed, 06/11/2014 - 20:57 | 4846914 buzzsaw99
buzzsaw99's picture

it really does make perfect sense that they are going in opposite directions if you think about it. lower (fake ass) gdp numbers means MOAR BITCHEZ.

Wed, 06/11/2014 - 22:08 | 4847158 samsara
samsara's picture

Next year forced conversions of 401s and pensions to T-bills or a variation on that.

Thu, 06/12/2014 - 06:28 | 4847747 orangegeek
orangegeek's picture

FOMC bloviates on the 18th.  6 years of POMO and this is what we have.

 

Have the banksters and their friends made enough from POMO, or do they need MOAR and MOAR and MOAR??

 

Stop spending folks.  Cut your cable and get a $20 antenna.  Buy essentials only.  Get online ware from sites that offer it for free.  Stop driving, unless essential.

 

The best way to fuck the banksters is to stop spending.  Notice the -1.1, oh wait, the -1.7 GDP for Q1?  That's what we need for Q2.  The only thing inflation helps is the massive blob guberment's debt spending.

Thu, 06/12/2014 - 07:41 | 4847808 AdvancingTime
AdvancingTime's picture

The economic recovery that the media and talking heads have been bantering around does not exist and is just a myth. A manipulated stock market distorted by recent economic policy hides and mask the real truth, in many ways it is ground zero in the war to convince us all is well.

The American people and Main Street will tell you they are far from convinced that it is smooth sailing ahead. Huge weakness in the economy has been shown by numbers that barely get by even after record amounts of stimulus. Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella.

Recent changes in how the GDP is figured , which boosted growth thus reducing the debt to growth ratio, and attempts to spin poor numbers regarding employment have been met with skepticism. More on this subject in the article below.

http://brucewilds.blogspot.com/2013/10/myth-of-economic-recovery.html

Do NOT follow this link or you will be banned from the site!