There is only so much gov't & fed can do to prop stocks, at some point, the market will figure out the global economy continues to implode. pic.twitter.com/uKrfk6pwhr
— Alastair Williamson (@StockBoardAsset) January 11, 2019
Risk assets are massively overvalued right now (Corp bonds and stocks) not treasuries. Nearly 2 standard deviations rich. You’ll see how overvalued they are in the next recession. December was a preview, and in a recession it won’t bounce https://t.co/UXn3GaR66v
— GreekFire23 (@GreekFire23) January 11, 2019
The big declines in the industrial production data for Germany, France, Italy, Spain and the UK raises the specter of European recession. Just as the ECB takes its foot off the gas. Europe is a bigger economic entity than the USA, so the global GDP impact will be considerable.
— David Rosenberg (@EconguyRosie) January 11, 2019
bad news for equity market pic.twitter.com/qv3Q4c1tyB
— Alastair Williamson (@StockBoardAsset) January 11, 2019
wow pic.twitter.com/F0dYPAuhoX
— Alastair Williamson (@StockBoardAsset) January 11, 2019
2600 $SPX pic.twitter.com/uAtEi238Fo
— OCCUPY WISDOM (@OccupyWisdom) January 11, 2019
In 2008 we learned:
1) Systemic Risk Exists
2) It can be caused by large mispriced Debt Markets (like US Housing).From ‘09-‘18 Central Banks:
1) Underpriced Systemic Risk.
2) Mispriced even larger Debt Markets (Sovereign Credit).
3) Created Political Risk in Populism.— Paranoid Bull (@paranoidbull) January 11, 2019