It's deja vu all over again as the dollar resumes its decline against all major peers on Friday as equity markets from Asia to Europe, and US futures, are a sea of green as the market meltup continues at an unprecedented pace.
"...by the time that rising interest rates and soaring debt service payments are permitted to perform their fear-inducing function among the politicians, there will be no way to stop the nation's fiscal doomsday machine."
"An unprecedented bubble emerged during 2004-2006. We believe the current market environment is similar, in which monetary policy (hiking the policy rate) is likely to have a limited effect in restraining risk-taking."
"All the market indicators right now look very similar to what we saw before the Lehman crisis, but the lesson has somehow been forgotten... Central banks are now caught in a 'debt trap'..."
uring the last two weeks markets have reacted to every single comment from ECB speakers. Far from the "peace and quiet" the ECB probably thought it had bought itself last October, this clearly suggests the press conference this week will not be an easy one for Draghi.
For only the 4th time since 1999 (and for the first time since Lehman), South Korea's economy unexpectedly shrank in Q4 (driven by the biggest crash in exports since 1985), busting the global-synchronized-growth narrative.
"The simple fact is that investors are paying over three times the average and almost twice as much as the prior peak for a dollar of economic growth... at a time when we are clearly late in the economic cycle..."
In what has been a relatively quiet overnight session, equity futures are once again a sea of green, as the stock market meltup continues, while the dollar bloodbath is accelerating.
"...we’ve yet to hear Jerome Powell field a question about stock prices as FOMC chairman. If investors detect any hint that there won’t be such a thing as a Powell Put, stocks would be more vulnerable than the above dashboards imply..."
Congress prohibited the use of BPOs to underpin traditional mortgages as part of Dodd-Frank. But, fortunately for private-equity firms and their limited partners, that prohibition doesn't apply to investors buying tens of thousands of homes.
In a move that virtually guarantees another government shutdown on February 8, Chuck Schumer has taken his funding offer for Trump’s border wall off the table, a non-starter with the president and most Congressional Republicans.
JP Morgan Chase & Co. is joining Apple, Bank of America, Wal-Mart, Comcast and a plethora of other US corporate behemoths in rewarding the Trump administration for its success on tax reform with the jobs and bonuses that it covets.
