No longer is this a question of establishing enough coincidences to render those coincidences … well … to render them not coincidental, it’s now gotten to the point where there’s almost too much proof. That is, this is one of those rare cases where the sheer amount of incriminating evidence has accidentally created its own smoke screen.
“Whatever the reason, itâ€™s probably a good bet that consumer spending will remain underwhelming until Americans feel more comfortable using their credit cards again. And while that will provide a boost to both activity and bond yields it will also, ironically enough, set the stage for the next recession.”
“The sharp deceleration in commercial and industrial loan growth has generated a sense of cognitive dissonance among market participants, who are otherwise confronting generally encouraging growth data.”
” The broad based risk-on, over the past couple of weeks across European risk assets, has increased risks that should the political uncertainty ease post the French elections, rate hike newsflow will continue to grow.”
“Decide questions for yourself like whether global growth is expanding or not? At the end of the day is there likely to be additional or less quantitative easing pumped into the system? Are sovereign wealth funds apt to continue to increase their commitment to global equities or go back to sovereign debt coupon clipping?”
“This will be like knowing youâ€™re going to be pushed off a cliff edge, preparing for the worst, and then landing on a ledge just below. It doesnâ€™t mean you wonâ€™t ultimately plummet to your death, but thereâ€™s the relief of an unexpected opportunity to save yourself.”