Given the rapidity with which the global economy is now declining, we will be lucky if a credit crisis leading to deeply negative nominal rates doesn’t happen later this year...
History will show millennials will be known as the "lost generation," as their ability to participate in the American dream of homebuying was cut short by student debt servicing payments.
Yet, it's hard to believe that Mexican politicians are truly indignant about the deaths of Mexican nationals in the US when Mexico's homicide rate is nearly five times that of the US, and among the worst in the world.
So, if they are aware that the actions they took in the 1920s triggered the Great Depression, why are they following nearly the exact same pattern today?
"central banks have not been able to recreate the Pavlovian response to buy every equity dip which was instrumental in creating the record low vol environment of 2017"
"The risk that Chinese policy makers lose control is very high indeed, not just in relation to the risk of capital flight such as we saw in 2016, but also the clear and present vulnerability of the banking sector that we have witnessed in recent weeks"
"A full-blown cutting cycle (6 consecutive cuts of 25 bps each) from April through December will bring the federal funds rate back to zero before the end of 2020."
