Here’s Some Color On Goldman’s March Fed Pause Call Because Some Folks Think This Is A Big Deal
Throwing in the towel – sort of.
Throwing in the towel – sort of.
Way back in April, two months after investors too young to remember a time when
“I am just back from a two-week trip to Lake Tahoe and Yosemite/Sequoia Parks”…
Expect this to get plenty of attention.
“HFTs know the price of everything and the value of nothing.”
Again, please: “We’re not in Kansas anymore.”
“For the past 30 years fiscal deficits have been a big financial nothingburger because the Fed and other central banks gutted their sting.”
This is not going to be for the faint of heart.
So basically, Ben just said that the only thing he can think of off the top of his head that would be worse for financial markets than Trump starting a trade war would be if the plot of “Seeking A Friend For The End Of The World” became reality.
I guess you can’t blame investors being a bit shell-shocked.
Why yes, the stock market is “an important place for investors to invest.”Â
Is this it?
…that was a 23-standard deviation event. I’m not sure what color swan that is – maybe psychedelic?
“I was up until the wee hours, checking my phone to see where VIX futures were trading.â€
And so, legions of retail investors, hordes of previously cock-sure newly-minted “money managers”, and scores of popular pundits who swore to you they knew what they were talking about, are left to ponder the stark reality of a market structure-driven nightmare scenario.
“…never in modern financial history has a Central Bank expanded its balance sheet through quantitative easing and then successfully shrunk it back down.”
It’s almost – almost – like this fucker gets it.
And there you go. Another way for cryptocurrencies to morph into a systemic risk…
Obviously, nothing could go wrong here.
Also ensuring a rapid reversion are everyone’s favorite market doomsday vehicles.
“Vol shorts will get their comeuppance, even if it’s later rather than sooner.”
“We are likely to be nearing a low point for major market bond and equity vol, and if the catalyst is policy it will likely come from positive volatility QE ‘flow effect’ being more powerful than the vol depressant ‘stock effect’.”
After all, “shouldn’t greater uncertainty about key economic policy issues lead to a larger dispersion of likely potential outcomes for companies?”
“I can already hear the guffaws from all my hard money readers. The last thing the government needs to do is spend more money is what they will say. We need to save more, spend less, and tighten our belts. Well, that has been tried.”
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