"Every Fed Hiking Cycle Ends With Default And Bankruptcy Of Governments, Banks And Investors"

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by Tyler Durden
Monday, Apr 18, 2022 - 10:30 AM

One week after Bank of America's Michael Hartnett - the Wall Street strategist who we ruled recently is officially "Wall Street's biggest bear" having outbear-ed even Morgan Stanley's Michael Wilson and, at times, permabear Albert Edwards - published his most bearish weekly dose of fire and brimstone (to date), when his April 7 Flow Show note titled Atlas Slugged, descended below even Zero Hedge levels of absurd bearishness writing that the inflation shock" is worsening, the "rates shock" is just beginning, and "recession shock" coming (full note here), Hartnett takes us on a depressing and dreary trip through the coming dark days, where the big question will be not whether it is a recession or stagflation, but if it's a depression.

But first, as always we start with the latest actual flows, which confirm what we just noted when discussing the first retail outflow in weeks: according to BofA which cites EPFR data, last week saw the largest outflow from equities since Dec’21 at $14.4BN, as well as the 9th straight week EU equity outflow...