MAR
28 18 SIT EC y POL
ND denounce Global-neoliberal debacle y propone State-Social
+ Capit-compet in Econ
ZERO HEDGE ECONOMICS
Neoliberal globalization is over. Financiers know it, they
documented with graphics
Economic situation today:
NYSE FANG
Stocks sunk again
See chart:
https://www.zerohedge.com/sites/default/files/inline-images/2018-03-28_12-55-02.jpg?itok=lqbTIcj-
Not A Great
day for Elon Musk...
See Chart:
Bank
stocks trod water today too...
See Chart:
IG Credit
spreads continue to widen in US and Europe...
See Chart:
Bonds led
Stocks lower once again
See Chart:
Flattening
the curve dramatically to fresh 11 year lows..
See Chart:
UST 2s30s
is now 72bps!!
See Chart:
The Dollar
Index spiked again as a flight to quality continued - erasing the
post-Fed-rate-hike plunge...
See Chart:
Finally,
Jay Powell better stop this insanity soon or else...
See Chart:
Bonus
Chart: Will it happen again? US 1929, US 1987, and Japan 1990...
See Chart:
….
SOURCE: www.zerohedge.com/news/2018-03-28/musk-massacred-bezos-battered-zuck-still-fked-stocks-fail-bounce
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"...the Fed is in the fundamental
business of falsifying interest rates and other financial asset prices. The problem is, it fuels financial bubbles and malinvestments, not
capitalist prosperity."
The single most important
price in all of capitalism is the interest rate----and at all points on the
maturity curve. And the single most important truth about honest interest
rates is that they must be discovered by markets,
not imposed by the state.
Contrary to the
low-flation narrative, of course, CPI inflation has not
dropped by a commensurate amount, averaging about 1.75% during
recent years. So the Fed price-setting committee (i.e. the
FOMC) did apparently get the real corporate BBB yield
down to just 2.0%.
What happened?
Why,
corporate America did well and truly go on a borrowing spree. Back in early 1997, corporate debt
outstanding totaled $4.6 trillion and it computed to 54% of
GDP. By contrast, by Q3 2017 it had soared to $14
trillion, and amounted to 72% of GDP.
There is absolutely no reason to assume that somehow the US corporate sector was
"underleveraged" in 1997, and that the Fed's monetary central
planners helped to get it properly buried in debt.
Still, had
the debt ratio stayed at the 54% of
GDP level, corporate debt today would be a cool $3.5 trillion lower.
See Chart:
The theory of
monetary central planners like Dr Williams, of course, is that they were just helping the business community
borrow hand-over-fist----that's what the nearly $10 trillion gain since 1997
amounts to----in order to invest at higher rates than slow-witted corporate
executives would do on their own.
We could say wrong
again, but why bother?
The data
is dispositive, but completely ignored by our omnipotent monetary central
planners. In fact, net investment has been heading straight downhill on a trend
basis since the late 1990s, and is still 35% lower after 10 years of
Fed stimulated "recovery" and drastically falsified interest rates,
as illustrated by corporate BBBs.
See Chart:
Then again, maybe
the C-suites are not as slow-witted as Dr. Williams presumes. Since 1997 they have cycled upwards of $20
trillion into financial engineering plays. That is, stock
buybacks, M&A deals, leveraged recapitalizations and cash extractions
of every imaginable shape and kind have flowed back into the canyons of
Wall Street, inflating stock prices and options values along the way.
As we said, the Fed is in the fundamental business of falsifying interest
rates and other financial asset prices. The problem is, it fuels financial bubbles and mal investments, not
capitalist prosperity.
….
SOURCE: https://www.zerohedge.com/news/2018-03-28/who-needs-wall-street-when-you-can-have-monetary-unicorn
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... a very different regime has
recently begun.
Professional
money managers were leery about buying stocks during the recent rebound, judging from Bloomberg's
Smart Money Flow Index, which tracks Dow Jones
Industrial Average moves in the first and final 30 minutes of trading.
See Chart:
The thinking is that smart money will test the market and wait until
the end of the day before committing to any large moves.
The last
time SMART money and the market diverged this much did not end well for
stocks...
See Chart:
….
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POLITICS
Seudo democ y sist
duopolico in US is obsolete; it’s
full of frauds & corruption. Urge cambiarlo
...more than $3.1 billion in taxpayer fundsprovided to the Afghan Armed Forces was"grossly mismanaged."
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"Students march for gun control; women march for a variety of
causes, and, well, against anything Trump; but who is marching for less American war in the Greater Middle East?"
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Looking back on David Shulkin's
tumultuous, scandal-marred tenure atop the federal
government's second largest agency, it's amazing he made it this far.
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WORLD ISSUES and M-East
Global depression is on…China, RU, Iran search for State
socialis+K- compet. D rest in limbo
"Judging
by the images, it does seem they are keen to show that elements of the South
Sea Fleet are able to routinely join up with the carrier strike group from
Dalian in the north."
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"When
individuals or nation-states gain too much power they always end up acting like
abusive thugs... Julian Assange is simply the canary in the coal-mine for the
rest of us."
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Does it
work through a smog mask?
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DEMOCRACY NOW
US politics crisis: Trump captured by Deep state to
reproduce old cronyism without alter-plan
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more
business-wars: its profiteers US-NATO
Old
Pretexts for Mass-Murderous Aggression: A New War Against Russia in Ukraine
Unfolding Before Our Eyes? By Prof. John
McMurtry
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SPUTNIK and RT SHOWS
Geopolitics & the nasty business of US-NATO-Global-wars
uncovered ..
RELATED:
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RT SHOWS
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NOTICIAS IN SPANISH
Latino America looking for alternatives to neoliberalism to
break with Empire:
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PRESS TV
Global situation described by Iranian observers..
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