Global recessionary pressures are building. South Korea, an economic giant, a play on global tech, and window on the Asian economy, saw industrial output sink 1.7%, embarrassing a consensus forecast of -0.2%.
— David Rosenberg (@EconguyRosie) December 28, 2018
https://twitter.com/OccupyWisdom/status/1078556918401110016
If the Richmond Fed survey is anything to go by, you should expect a horrible ISM report next week.
The Richmond Fed survey now hints at ISM below 50 within long.
More in our weekly editorial -> https://t.co/eqK137UakJ pic.twitter.com/5cEhGzuK5I
— Andreas Steno Larsen (@AndreasSteno) December 28, 2018
https://twitter.com/OccupyWisdom/status/1078555238615973889
Liquidity update $SPX pic.twitter.com/YvXGeghHdI
— Teddy Vallee (@TeddyVallee) December 28, 2018
The Arrival Of The Credit Crisis
👉https://t.co/pVii48uoqg pic.twitter.com/YjDJooyNc1— M/1_LP (@MI_Investments) December 28, 2018
Debt saturation drives the global slowdown.
More stimuli, more debt, less growth. The law of diminishing returns. pic.twitter.com/TttbjZBDNe
— Daniel Lacalle (@dlacalle_IA) December 28, 2018
"Liquidity is OK" said Mnuchin on the 24th. After an initial sell-off due to the poor communication, markets have actually stabilized.
What if “liquidity is OK” means that excess liquidity trends will be reversed soon?
More in our markets editorial -> https://t.co/eqK137UakJ pic.twitter.com/gz1xUQkPmU
— Andreas Steno Larsen (@AndreasSteno) December 28, 2018
FT: Investors Flee Risky US Corp Debt Market
👉https://t.co/OIDdqkA9Nh pic.twitter.com/XJLIhafnrM
— M/1_LP (@MI_Investments) December 28, 2018
What if an Inverted Yield Curve Might Not Just Indicate, but Cause, a Recession?
An inverted yield curve can potentially harm U.S. economic growth and even cause a recession by pinching bank-lending margins and causing a contraction in loan activity, according to a blog posted on Thursday by the Federal Reserve Bank of St. Louis.
An inversion, when yields on short-term Treasuries rise above returns on longer-dated debt, has preceded every U.S. recession for the past 60 years. It’s currently not inverted, though the spread between two- and 10-year Treasuries has flattened.