ZeroHedge Search

"The market feels like it did before the financial crisis hit in 2008, when consumers were over-extended with debt."

Looking back at the years preceding the 2008 financial crisis, a critical warning sign was the surging gap between the growth in home prices and household income...

The market gods are satisfied...

Reason No. 2 was state government and policies... better weather was 3rd...

What do these seemingly-unrelated pieces of modestly positive news have in common?

Fragile...tentative and subject to change

"if Greece can successfully auction negative-yielding T-bills, we see no reason why the S&P500 bull market that started at 666 couldn't end with an overshoot to 3333."

(Spoiler Alert: No...)

As for whether a "skinny" trade deal with China had been reached? "The stock market is always right."

Just remember: $60BN Bill POMO + $75BN O/N Repo + $70BN ($35BNx2)Term Repo is clearly "NOT A QE".

"...you start to get in the imminence category once it first starts steepening out from the inversion, because, by then, the Fed has realized it's behind the curve, the market knows it too..."

...real income expectations rose to their most favorable level in two decades

...from $47BN valuation to insolvent in 2 months!

The "plumbing" is still clogged up, and no matter what the Fed does, it refuses to fix itself. 

“This feels very sustainable.” – Fed Chair Jerome Powell, Oct 8, 2019

"...troubles in the subprime housing market will be contained." - Fed Chair Ben Bernanke, May 17, 2007.

Though the reporter who broke the news has since deleted his tweet.

... the portion of bonds trading at distressed levels, defined by a spread level higher than 1000bps, is on the rise, which tends to be a good leading indicator for future defaults.