If the outlook is so rosy, why are banks de-risking?

If the outlook is so rosy, why are banks de-risking? Shedding assets in the past 8 weeks; more cash on their balance sheets (over $3 TN) than either consumer credit or res mtgs. The fastest segment of bank balance sheets are T-notes and bonds — +68% SAAR in the past 13 weeks!

— David Rosenberg (@EconguyRosie) July 6, 2020

while the banking index is down 34% on the year.
It helps to look underneath the hood. pic.twitter.com/lTQb5uSD2F

— Sven Henrich (@NorthmanTrader) July 6, 2020

9,274 Stores Are Closing In 2020 – It’s The Pandemic And High Debt – More Will Close

27 US #leveragedloan defaults in 2Q20, totaling $23B, the most since 2009. Default rate now stands at 3.23%. That's a five-year high, and up from 1.84% at end of 1Q @Kakourisr pic.twitter.com/jCu8zOGzfU

— Leveraged Loans (@lcdnews) July 5, 2020

1. 1200 checks been spent
2. Service industry accounted for much of June jobs data; they are looking at layoffs again
3. Bills piling up, taxes due 15 June along w/ extra unemployment and mortgage deferments ending

US govt needs get on it now; not later We at 3T zone this time

— 𝕮𝖍𝖎 🛢️ (@chigrl) July 5, 2020

Copper bounce is driven more by supply tightness than demand improvement.

As I mentioned here: t.co/ukM4gLPi7O pic.twitter.com/ECxeIgoDOh

— Daniel Lacalle (@dlacalle_IA) July 6, 2020

#liquidity may have hit peak growth (US Fed has also cooled), but it continues to grow and contrasts sharply with #GFC 2008-09. June 2020 estimates shown pic.twitter.com/W4v9Dl1PEO

— CrossBorder Capital (@crossbordercap) July 6, 2020