$spx vs junk bonds pic.twitter.com/UVZqhyEIoO
— Álvaro Oviedo (@alvoviedo) February 7, 2022
$spx earnings pic.twitter.com/2b5rq3nSlz
— Álvaro Oviedo (@alvoviedo) February 7, 2022
U.S. inflation is expected to hit a multidecade high in January https://t.co/2LCqTduV5a
— WSJ Central Banks (@WSJCentralBanks) February 7, 2022
Cat food has doubled in price in the last month.
This inflation thing is getting out of hand now 🙂
(also, we need an inflation emoji)— Dune AnaIytics (@DuneAnaIytics) February 7, 2022
*The US fiscal impulse remains deep negative for the 7th month straight as the US gov. 2020 stimulus erodes
Note that this is simultaneously happening while major Central banks (like Fed) have been tapering + tightening
W/o these – demand will continue to fade lower pic.twitter.com/9IB7pxhNFj
— Adem Tumerkan (@RadicalAdem) February 7, 2022
The central bank Jedi Mind trick converts all skeptics, relegating the rest to "perma-bear" status.
Increasing confidence in virtual prosperity until it reaches such a magnitude of collapse that even the greatest fool gets the message. pic.twitter.com/WxYoD7rmqr
— Mac10 (@SuburbanDrone) February 6, 2022
When global markets collapse at the zero bound, monetary policy will no longer be effective.
Interest rates can't go lower to boost the economy, and QE won't reinflate the asset bubble.
Then the underwear will be mighty stained. pic.twitter.com/Cs0ZQkifdW
— Mac10 (@SuburbanDrone) February 6, 2022
The whole problem is that when too many people believe the "Just In Time Bailout hypothesis" then it backfires.
Especially when there is none forthcoming.
Here we see the lack of hedging this time versus the last two times when a bailout WAS forthcoming. pic.twitter.com/3qc7GBf9hQ
— Mac10 (@SuburbanDrone) February 6, 2022