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‘Quick Answers Must Be Found’ As Eurozone Investor Sentiment Plunges Amid Worsening German Factory Malaise
At this juncture, nobody should be surprised to get fresh evidence of economic malaise out of the eurozone, but just because it isn't surprising, doesn't mean it should go unreported.
Investor sentiment tumbled to the lowest level in more than six years in October, according to the Sentix economic index, which printed a horrendous -16.8, missing the most pessimistic estimate from more than a dozen economists (the range was -14 to -10.1). It was the worst print since April of 2013.
"There is no
Rightfully so, taxpayers are wondering why QE didn’t work globally — and hopefully serious finger pointing will begin as to why central banks are allowing economic systems to fail. Understandably there are cyclical business cycles and downturns, after growth but after applying about $15 trillion in stimulus to attempt to obtain synthetic or organic growth is looking like a very bad way to do business. One might think that politicians around the world will be held accountable for supporting a weak, corrupt banking industry that infests all levels of government, all of whom need to be weeded out. Sadly, trump is a great symbol of global economic destruction — and his 3rd grade understanding of economics and his criminal intentions are quickly insuring that America will Never Be Great Again and we all can thank the GOP for placing us in the crosshairs of total failure!
Meanwhile, a fast look under the U.S. Treasury hood:
Something changes with treasuries around 2008-07-04:
Oct 8, 2008 – “The Federal Reserve, working in coordination with other central banks worldwide, enacted an emergency interest rate cut on Wednesday. The Fed lowered its fed funds rate by a half percentage point to 1.5%”
Then: Nov 3, 2010 “The Fed said it would buy an additional $600 billion in long-term Treasury securities by the end of June 2011, somewhat more than the $300 billion to $500 billion that many in the markets had expected.
The central bank said it would also continue its program, announced in August, of reinvesting proceeds from its mortgage-related holdings to buy Treasury debt. The Fed now expects to reinvest $250 billion to $300 billion under that program by the end of June, making the total asset purchases in the range of $850 billion to $900 billion.”
Then: 2019/08/13/ trillion-us-budget-deficit-could-lead-the-fed-to-cut-rates “We recognize that the Fed doesn’t bend to the circumstances of dealers and carry traders, but we’d also note that we never had this much Treasury supply during a curve inversion on top of record inventories with leverage constraints!” Pozsar wrote.”
Taxpayers, of course, are on the hook to those buying the government’s debt.
https://fred.stlouisfed.org/graph/?g=p62T ( slide the macro date from 2008 to about April 2019 )