A Portrait Of Quantitative Failure

Simply put, it's not working stupid!

 

 

Especially in Japan...

 

But, as BofAML's Michael Hartnett notes, the details of what has been done and the consequences of those actions is, simply put, just embarrassing for all the central planners...

  • Dec’17: first FOMC meeting which market assigns >40% probability of rate hike
  • 659: number of global rate cuts since Lehman bankruptcy
  • $12.9tn: outstanding amount of bonds currently yielding <0% (= 29% of total)
  • $24.6tn: outstanding amount of global central bank holdings of financial assets
  • -1.1%: the most negative bond yield in the world (3-year Swiss government bond)
  • 107 years: time it takes to double your savings in 1-year US deposit account
  • 1387 years: time it takes to double your savings in 1-year German deposit account
  • 6932 years: time it takes to double your savings in 1-year Japanese deposit account
  • 5.7%: level of investor cash as % AUM (Jul’16 FMS), highest since Nov’01
  • $1.6tn: level of cash at US corporate sector, near record high
  • 1978: the year US labor market participation rate was as low as it is today
  • 21,084,000: current number of unemployed men and women in Europe
  • 49%, 45%, 39%: youth unemployment rate in Greece, Spain & Italy

  • 0.16%: the infinitesimal increase in Japan’s real GDP in the past 8 years
  • 25%: annualized YTD return from global government bonds in 2016, a 30-year high

Eisteinian Yellenian madness... "doing the same thing over and over again and expecting different results."