Graham Summers: The Everything Bubble Has Burst… Now Comes the Inflationary Storm
"Bond yields have begun rising, suggesting the bond market is beginning to discount inflation hitting the financial system."
"Bond yields have begun rising, suggesting the bond market is beginning to discount inflation hitting the financial system."
"You can’t “buy low,” if you don’t have anything to “buy with.”"
"Bottom line, the Fed has started up the “money printing press” again, and in an attempt to curb market panic, has essentially cut rates to zero. But that hasn’t worked out well so far, because the market is still in panic mode."
"Germany is the ultimate backstop for the EU. ... German sovereign bonds are beginning to break down."
"Given the potential harm caused by the divergence between stimulus and economic fundamentals, it would be short-sighted and irresponsibly pragmatic to count out the prospect of inflation."
Wall Street estimates are still in fantasyland.
"Today, the ECB is powerless to stop this. They don’t have the tools nor the expertise. And they won’t even after they get the reforms they believe they need. It is bankrupt now and it will need external help to survive."
On 9 March 2020, the Dow set a record by falling 2013 points. On 12 March, it beat this record with a 2352-point fall. Then, on Monday, it went into freefall, plummeting by 2997 points, or 12.93% on the day.
"Europe is shutting down"
"In addition to using up all of their “interest rate ammunition” in one epic volley, the Fed also officially restarted quantitative easing…"
"Are we at the bottom yet? Probably not, if history is any guide."
"The Coronavirus panic has therefore been a convenient excuse to extend the stimulus and liquidity provision by slashing rates towards zero."
"As a pure play stock in the video conferencing category, Zoom is uniquely positioned as companies shift to more remote work."
"We are in a bear market and a recession. It just hasn’t been announced ... yet."
"The markets have just suffered their worst one-day collapse since the 1987 Crash."
"At the Port of Los Angeles, 145 drivers have been laid off and others have been sent home without pay..."
"At some point in the future, someone is going to pull all the data together. They will closely examine the hospital logs, analyse the transmission number and the infection rate, and do a cost-benefit analysis of the efforts to contain the virus. They may well conclude governments overreacted..."
“Tops are a process, and bottoms are an event”
"All major U.S. banking stocks fell by double-digit percentages during Monday’s session."
"The DJIA briefly slumped to 19.4% of February 2020 high as fears of the impact of the coronavirus pandemic grow."
"The 10 year UST yield has dropped from ~1.6% to ~0.8% in just 12 trading sessions."
"If you can’t find physical for sale easily, then the street price will be very high when you do find it."
"The Achilles’ heel of the U.S. empire is the debt."