Source: https://www.zerohedge.com/markets/bofa-we-are-witnessing-biggest-asset-bubble-ever-created-central-bank Back in March 2018, when commenting on what was then the 2nd longest central-bank induced bull market of all time (it is now the longest ever) Bank of America’s CIO Michael Hartnett pointed out that “bull market leadership has been in assets that provide scarce “growth” & scarce “yield”. …
Source: https://www.zerohedge.com/markets/bullshit-earnings-charlie-munger-slams-companies-who-use-ridiculous-adjusted-ebitda-report These days, the reporting of financial metrics has wandered so far off the path from normal GAAP earnings that’s it’s difficult to keep up with companies and decipher their earnings reports each quarter. The SEC has done little to create uniformity for investors in how companies disclose their …
Summary of Key points. Read the full article at https://www.zerohedge.com/economics/debt-deficits-path-mmt “Given today’s record-high levels of debt, the country cannot afford a deficit-financed tax cut. Tax reform that adds to the debt is likely to slow, rather than improve, long-term economic growth. The problem with the claims that tax cuts reduce the …
With utmost respect for all market analyst, economist we have to face the reality that market movement has drastically changed since introduction of Algorithmic trading platforms. Interest in algorithmic is faster, cheaper, and analyses all data with a huge bias towards headlines. Traditional traders use technical analysis to take advantage …
It’s not every day you hear a major financial institution hint at the possibility of the entire economic system collapsing.
The reason major financial institutions (and the mainstream financial media) shy away from a negative outlook on the economy is out of fear of triggering a kind of “self-fulfilling prophecy.” People stampeding to sell stocks and pull money out of banks could cause a vicious cycle of declines and losses.
And so these institutions tend to be positive, no matter what is really happening. But if a hungry bear is standing behind you in the woods, do you want to be “optimistic” and hope it isn’t there?
The globalists and banking elites have been running the “order out of chaos” scam for a long time, centuries in fact. One thing that practice does is make people of otherwise average intelligence appear brilliant. One thing that organized conspiracy does is make a group of highly vulnerable criminals appear omnipotent and untouchable. Ultimately, it’s all about time. The globalists have had lots of time to tune and refine their methods for manipulating the collective psyche of the masses.
While consumer confidence has fallen yet again, consumer spending remains high. In fact, for the third straight month, consumers have been losing confidence in the markets, yet they haven’t curtailed their spending.
Optimism about job prospects and business conditions down the road grow weaker The Conference Board said Tuesday. Its consumer confidence index edged down to 125.9 in October, compared with 126.3 in September. Perceptions about the present situation improved, but future expectations are still volatile, according to a report by PBS.
Central banks had thrown money at the market since 2000 and being at it for over twenty years. This time, however, Central Banks are running out of powder, and the debt bubble they helped to create is astronomical, over $250 Trillion. ECB, BOJ, and many other major economies have already fired their last shot with no effect.
Worries are growing over the Fed’s efforts to fix funding issues that are all likely to get much worse. The New York Fed just announced it is increasing its temporary overnight repo operations to $120 billion a day from the current $75 billion. In addition to the repo increase, term repo operations are rising to $45 billion, from $35 billion.
It all started in 2000 when Federal Reserve chairman Alan Greenspan; faced four challenges that caused near deflation. The customer CPI in 2001 was 1.5%, the lowest since 1986. The CPI rosed to 2.83% in 2002 but dipped again to 1.88% in 2003. In response, the annualized effective Fed fund rate declined from 6% in Jan 2001 to 1.8%.
In 2008, and the world saw the near-destruction of the banking system and the international monetary policy. The CPI dropped to 0.09% in 2008, even lower than 1.8% that prompted Greenspan to embark on four years of monetary easing
The global stock market gets its cue from over-optimistic narrative news that resulted in a pandemic obsession to push stock market asset price higher at any cost.