lunes, 18 de mayo de 2020

MAY 18 20 ND SIT EC y POL



MAY 18 20 ND SIT EC y POL
ND denounce Global-neoliberal debacle y propone State-Social + Capit-compet in Eco


ZERO HEDGE  ECONOMICS
Neoliberal globalization is over. Financiers know it, they documented with graphics

Boys that escalates quickly
"I mean, that really got out of hand fast..."

Futures show the mania started early (Powell), was extended before the open (Moderna's vaccine headlines), and extended around the EU close (Merkel &Macron)...Small Caps were the biggest gainers (futs were limit up just ahead of open) with Nasdaq the laggard on the day...a weak close was notable however...
See Chart:

In fact, Powell's promise to do "whatever it takes" sparked the greatest opening buying pressure in history at today's open...(Who the hell was seriously surprised by anything Powell said?)
See Chart:

But the Moderna meltup really took it to '11':
See Chart:

  • *TRUMP SAYS TODAY WAS VERY BIG DAY THERAPEUTICALLY
  • *TRUMP SAYS TODAY WAS BIG DAY FOR CURES, VACCINES
  • *TRUMP SAYS THERAPEUTICS, CURES MORE IMPORTANT THAN VACCINES NOW
So, to clarify the day's early action - we soared on the back of Fed fears and promises to print more due to bad news and we soared on positive vaccine headlines which would end the bad news.
Macron and Merkel made some promises they can't keep alone (i.e. the Dutch among others have to agree to the joint debt malarkey) but that didn't matter today. The euro soared and peripheral debt yields crashed...
See Chart:

Gold was down on the day...
See Chart:

And, aside from a brief spike, the gold/silver ratio continued to slide...
See Chart:

Bonds were a bloodbath today (all but 2Y now higher on the month)...
See Chart:

10Y Yields exploded higher today
See Chart:

Powell manage to reignite credit market exuberance...
See Chart:

The B-Dollar Index was also puked lower today (EUR strength)
See  Chart:

Bank stocks ripped higher today..
See Chart:

The Virus Fear Trade (Long Food, Short Leisure) plunged...
See Chart:

Another new record highs for FANG Stocks...
See Chart:

Finally, it seems the market doesn't need negative rates anymore...
See Chart:

Remember Remdesivir...
See Chart:
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RELATED

"Just because we’ve gotten away with it for this long doesn’t mean we’re going to get away with it forever..."
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The US oil production slowdown, China’s domestic gasoline pricing policy, and power market outlooks on both sides of the Atlantic feature in this week’s pick of commodity market trends...
SEE Chart:
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I think that politicians all over America are going to deeply regret overreacting to COVID-19, because nobody is going to be able to put the pieces back together now that our economic bubble has burst...

The last recession was really, really bad, but it was never like this It is time for us to face reality, and that means admitting that the U.S. economy has plunged into a depression. 

This is already the worst economic downturn that America has experienced since the Great Depression of the 1930s, and we are right in the middle of the largest spike in unemployment in all of U.S. history by a very wide margin.  Of course it was fear of COVID-19 that burst our economic bubble, and fear of this virus is going to be with us for a very long time to come.  So we need to brace ourselves for an extended economic crisis, and at this point even Time Magazine is openly referring to this new downturn as an “economic depression”.  Needless to say, there will be a tremendous amount of debate about how deep it will eventually become, but everyone should be able to agree that our nation hasn’t seen anything like this since before World War II.

In order to prove my point, let me share the following 10 numbers with you

#1 According to a study that was just released by the National Bureau of Economic Research, more than 100,000 U.S. businesses have already permanently shut down during this pandemic, and that represents millions of jobs that are never coming back.

#2 The Federal Reserve Bank of Atlanta is now projecting that U.S. GDP will shrink by 42.8 percent during the second quarter.

#3 On Friday we learned that U.S. retail sales were down 16.4 percent during the month of April, and that is a new all-time record.

#4 U.S. factory output was down 13.7 percent last month, and that was the worst number ever recorded for that category.

#5 U.S. industrial production fell 11.2 percent last month, and that represented the worst number in 101 years.

#6 On Thursday, we learned that the number of Americans that have filed initial claims for unemployment benefits during this pandemic has risen by another 2.9 million, and that brings the grand total for this entire crisis to 36.5 millionTo put that number in perspective, at the lowest point of the Great Depression of the 1930s only about 15 million Americans were unemployed.

#7 According to the Federal Reserve Bank of Chicago, the real rate of unemployment in the U.S. is now 30.7 percent.

#8 According to a survey Fed officials just conducted, almost 40 percent of Americans with a household income of less than $40,000 a year say that they have lost a job during this crisis.

#9 One study has concluded that 42 percent of the job losses during this pandemic will end up being permanent.

#10 According to a professor of economics at Columbia University, the U.S. homeless population could rise by up to 45 percent by the end of this calendar year.

We have never seen economic numbers this horrifying, and more awful economic numbers are coming in the months ahead.

As the dominoes tumble, it is going to send wave after wave of devastation through the financial industry, and it is going to make the subprime mortgage meltdown of 2008 look like child’s play.

I think that politicians all over America are going to deeply regret overreacting to COVID-19, because nobody is going to be able to put the pieces back together now that our economic bubble has burst.

Even before COVID-19 came along, homelessness had become a massive problem in many of our major cities, and now tent cities are rapidly multiplying in size.

There is going to be so much economic pain in the months ahead, and it could have all been avoided if we had made much different choices as a nation.

But we didn’t, and so now we all get to pay the price.
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FACT: La debacle neoliberal empeoro con la pandemia CV

This is a big enough demand shock (an economic “earthquake”) that virtually any company (U.S. or international) will struggle for years...

COVID-19 is still mysterious to scientists. It has several phenomena that make it problematic:
  • Contagious without symptoms;
  • A relatively long incubation period;
  • Symptoms throughout the body (i.e., blood clotting, COVID toe, organ failure);
  • Unknown immunity duration after recovery; and
  • Uneven virulence across strains, the population, and within an infection.

COVID-19 hit the developed world first; presumably in places where there is greater international travel.

With the U.S. UNEMPLOYMENT rate at 14.7%, the Taylor Rule implies the Fed funds rate should be less than minus -6% to be stimulating the economy. If the unemployment rate were to rise to 25% in May (per Treasury Secretary Steven Mnuchin on 05/10/2020), the Taylor Rule would suggest the Fed funds rate should be below minus -16% to be stimulative. I’m not suggesting the Fed will get to these levels, but it illustrates the scale of the crisis.
SEE CHART:

Global stock markets will fall to new lows

The stock market is fundamentally expensive. The price earnings ratio (trailing) of the S&P 500 is near 20. Prices will need to come down a great deal before stocks look secularly attractive. They will have to come down even further if earnings weaken materially. Multi-decade secular bull markets have begun when these ratios are below 10 (see chart below).
SEE CHART:

This is a big enough demand shock (an economic “earthquake”) that virtually any company (U.S. or international) will struggle for years. Even after the virus and economy improve, paying the huge public debt bills that economies have amassed will become the focus. Higher taxes will ultimately weigh on profitability for decades. There will be exceptions (say Clorox or Netflix, so far), but the majority will struggle.

The chart below puts the U.S. stock market’s (S&P 500) performance from its recent peak in the context of past major bear markets. In this view, things have only begun. For instance, in the Great Depression, it took nearly three years from the peak to the trough. We are just four months into this.
SEE CHART:

The stock markets went down through alternating waves of hopes (prices higher) and fears (prices lower). There will be many chapters to COVID-19. We are in the first one.

The table below shows all of the bear-market rallies greater than 10% in the cycles identified above. There were several strong rallies. The average length of those rallies was about two months (1.8). The current rally has lasted a very similar 1.2 months (assuming 04/29/2020 was the peak).
SEE TABLE

Some worry that the amount of stimulus the U.S. is spending will lead to hyper-inflation or equivalently, a weakened currencyThe fiscal/monetary picture of the U.S. isn’t as extreme as it is made to be. Japan’s finances are a useful example of how far a super-power’s credit stretches. On almost any dimension, Japan’s finances are in worse shape than in the US, Some worry that the amount of stimulus the U.S. is spending will lead to hyper-inflation or equivalently, a weakened currency. The fiscal/monetary picture of the U.S. isn’t as extreme as it is made to be. Japan’s finances are a useful example of how far a super-power’s credit stretches. On almost any dimension, Japan’s finances are in worse shape than in the US, and yet their 10-year yield is 0.00% (see table below). 

Credit risk should show up first in Japan before we would see it in the U.S. They are the canary in the coal mine on this issue..
SEE CHART:

All of these things combined portend a continuing U.S. Treasury bull market (lower yields) for a few more years.

COVID-19 is the equivalent of a 300-year flood. It will be the theme of financial markets for an enduring horizon.
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US  DOMESTIC POLITICS
Seudo democ duopolico in US is obsolete; it’s full of frauds & corruption. Urge cambio

“People are really starting to just look around and say, ‘Man, capitalism isn’t working,’...”
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"I'm not going to get hurt by it"
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Hoy se le agrego ‘ZINC’  y quiza por esto quienes tomaron la receta de Trump se intoxicaron  y murieron rápido.  La denuncia de los intoxicados la publique en esta red.. la de los muertos .. puede investigarse .. pero no tiene sentido hoy.
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Los grandes ‘inversores’ del WS quedaron divididos y quizá para siempre.
It's just something to keep in mind...
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En el béisbol Polit & Econ no se golpea la bola se lanza el bate-boomerang y hay herido
The Nasdaq is set to unveil new restrictions on initial public offerings, in a move that will make it more difficult for some Chinese companies to debut on its stock exchange.
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What goes around comes around.  El tit for Tat vendrá. La xenophobia is stupid
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The media seems confused by pollsthat fail to show former Vice President Joe Biden surging (and some showing Trump pulling ahead with voters)... truth might be found in a famous Stanford experiment called “Bobo the Clown.”
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La polución militarista continua..  quieren  mas pandemias .. y sepultura de héroes
"Despite all the euphoria, however, we believe that caution is still advisable: it will probably take some years before demand recovers to its pre-crisis level."
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...as long as records have been kept, thesun has never been quieter than it has been in 2019 and 2020... we have now entered “a very deep solar minimum”.
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No importa si el sol se oculta, pero que llueva p sacar el aire Contamin de l casa
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Mesclar el agua con aceite no enciende el motor, lo detiene
If Donald Trump wants to get re-elected as President of the U.S. he’s going to have to take out former President Barack Obama. At this point Obama is the person who most stands in his path for a second term...
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ADEMAS,  el agua esta sucia y el aceite malogrado. Eso no va a funcionar
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US-WORLD  ISSUES (Geo Econ, Geo Pol & global Wars)
Global depression is on…China, RU, Iran search for State socialis+K-, D rest in limbo

57-year old Ambassador Du Wei was found by aides not breathing in his bed Sunday morning.
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"China is not afraid of an independent investigation into the origin of the coronavirus...[b]ut IF THE INVESTIGATION FINDS IT ORIGINATED IN THE US, TRUMP'S REELECTION IS DOOMED."
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White House slams Beijing's payment as "token" to deflect from mishandling of outbreak...
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SPUTNIK and RT SHOWS
GEO-POL n GEO-ECO  ..Focus on neoliberal expansion via wars & danger of WW3

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NOTICIAS IN SPANISH
Lat Am search f alternatives to neo-fascist regimes & terrorist imperial chaos

REBELION

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ALAI ORG

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Cross Talk:  ‘FLYNNGATE’’
Well, it’s finally happening. The Russiagate hoax sold to the public is unraveling. The architects of this hoax – along with their accomplices in the media – are being exposed. What did Obama and Biden know and when did they know it? Will anyone be held accountable?
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GLOBAL RESEARCH
Geopolitics & Econ-Pol crisis that leads to more business-wars from US-NATO  allies

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DEMOCRACY NOW
Amy Goodman’  team

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