"Global Slowdown Is Evident.
In the Eurozone Data Weakening Is More Pronounced… Some Blame the Weather. More Likely Debt Saturation and Loss of Stimulus Placebo Effect," h/t @dlacalle_IA pic.twitter.com/Q0hr6Ev2TX— Alastair Williamson (@StockBoardAsset) May 10, 2018
"China export of inflation is over – now slowing down. China has led inflation trend since GFC #SaxoStrats," h/t @Steen_Jakobsen pic.twitter.com/e0RanSUAwN
— Alastair Williamson (@StockBoardAsset) May 11, 2018
The Treasury yield curve is the flattest since August 2007 t.co/WArxxi6uTp pic.twitter.com/mCvYwYhcj1
— Bloomberg (@business) May 10, 2018
The index for used cars and trucks fell 1.6% in April, the largest decline since March 2009 t.co/w5xVYktpQK pic.twitter.com/Zi4tW4oCux
— Trevor Noren (@trevornoren) May 10, 2018
The Buffet Indicator
The only time this indicator has been higher than today was during the Tech Bubble
Lacy Hunt: The Law of Diminishing Returns
Hoisington Investment Management’s Lacy Hunt and CNBC’s Rick Santelli discuss monetary deceleration, yield curve flattening and global debt.
Surging Credit Debt Defaults Sound Warning for Q2 Economic Results
Is the decreasing appetite for consumer credit being driven by tapped out consumers who recognize their inability to afford more, or are those same consumers simply not able to get any more credit as marginal debtors are now suddenly unable to keep up with the debt they already have?
As small-banks see a surge in credit defaults from non-prime borrowers, the latter is likely, and spells big trouble for an economy 70% driven by consumer spending. With very little savings to speak of, that spending must come from debt…debt that increasingly unavailable.
While many celebrated the record high US household wealth in the latest data from The Fed, what most missed was a record $1.0 trillion of credit card/revolving loans, a record $1.3 trillion of auto loans, and a record $1.5 trillion of student loans.