"...anyone relying upon and repeating its misrepresentations is complicit in the SPLC’s harmful defamation of large numbers of American citizens who, like the undersigned, have been vilified simply for working to protect our country and freedoms..."
"the bad news is that the tail risks are rising and our work and the literature suggest a major global trade confrontation would likely push the US and the rest of the world to the brink of a recession" - BofA
While headlines distract the world's investors with headlines of Trump and Xi exchanging trade-war shots - with Trump going big with tariff threats ($450bn) and China trying to play 'good cop' - something notable has been happening in the FX markets that few are paying attention to.
As a former spot currency trader for a major international bank, I have had first-hand experience of central banks directly intervening in markets in massive size.
"Our working hypothesis is that General Eisenhower was right. There were two big temptations to the American Republic of the 1950s; subsequent generations gave in to both of them."
"The funny thing to me, having covered the industry for +25 years, is that only the car guys/gals seem to know how dangerous such periods can be. The tech industry, not so much..."
Markets appear willing to put yetserday's risk reversal behind as they close out the week, with futures rising to 12 points to 2,765 and just shy of session highs, while the Dow finally appears poised to end its losing streak.
"What the American working and the middle classes will see (sooner than anyone imagines) is that actions of his sort have unexpected global consequences. They could cost the U.S. and the rest of the world big time..."
According to BofA, the biggest risk facing the US economy is "globalization" going in reverse because it has boosted 40% of the rise in S&P500 margins over the last two decades.
