"All of these products were born of central bankers with no self-control, individuals who’ve long since demonstrated that they are lacking in common sense. The fact is, they’ve gorged together and fed each other’s risky markets in concert. Now comes the time for the real discovery, the revelation of the feedback mechanisms that will infect each other’s markets and economies."
In the past 7 weeks investors have unwound a 1/3 of inflows to EU equities, accumulated over the past 15 months as the ECB QE has failed to reduce credit spreads, prompting fears of "quantitative failure."
"Economists’ views on the potential for a recession will probably be inadequate because they have been unable to predict any Post-WWII recession, so it is unlikely they will do so now..."
Just a week after 'the purge' began, Deutsche Bank is closing its office in Houston as part of a strategy to pare its U.S. operations, according to an internal memo seen by Bloomberg.
While payrolls will come and go, the big story remains the accelerating rout in Emerging Markets, where a bevy of currencies, including the TRY, ZAR, INR, IDR and especially the Argentina Peso, have gotten crushed prompting questions if another 1997-style EM crisis is on the horizon.
"In one or two months, China will hold more long-range military training and increase combined forces operations when engaged in such activities in waters near Taiwan."
"Maybe this is a sign that we have reached a moment, like 2000, where investors wake-up abruptly from their liquidity-induced slumber and realise they have inadvertently sleep-walked to the edge of an investment precipice."
According to a US Air Force general update from May 1, the US has already conducted more than two dozen tests of its new B61-12 guided nuclear gravity bomb.
