The Mess That Greenspan Made - Part 30

The New Abnormal

In this Telegraph story, the brave new world of negative and near-negative interest rates is mapped for anyone interested in seeing just how far central bankers have strayed from anything that might be considered “normal”.

Some related “success” to report from Sweden:

We just got a sign that Sweden’s crazy negative interest rate experiment is finally working

Uncork the champagne everyone…

Thursday Morning Links

MUST READS
Bullard Calls Raising Rates Unwise as Inflation Falls Short – Bloomberg
Negative interest rates a ‘dangerous experiment’ for the world – Telegraph
Moody’s: Few fiscal, monetary policy moves left to fight growth slowdown – CNBC
Ankara Bombing the Latest in Turkey’s Deadly Cycle of Violence – Time
Tim Cook Says Apple Will Fight Order to Help Unlock iPhone – Wired
Rubio adviser: ‘I think we’re going to surprise a lot of people on Saturday’ – Politico
Cruz overtakes Trump in new NBC/Wall Street Journal national poll – The Week
Cruz-Trump Feud Heats Up Ahead of S.C. Vote – Real Clear Politics
How Scalia’s Death Could Give Hillary New Life – The Nation
Bernie Sanders’s Path To The Nomination – Five Thirty Eight
Yes, Trump Can Win in November – And Here’s How – Fiscal Times
Trump and Sanders Give Voice to the Voiceless – Atlantic

MARKETS/INVESTING
Stocks: 5 things to know before the open – CNN/Money
All of the World’s Stock Exchanges by Size – Visual Capitalist
Short-Term Rebounds Along Downtrends Are Common – Price Action Lab
Less than 4% of world oil supply in the red at $35/b: Wood Mac – Platts
Equity markets: Rally, rally, rally. But for how long? – Economist
Wall Street issues few ‘Sell’ ratings. Here’s a case where it should have – Quartz
Gold prices ease as global equities rise, dollar steadies – Reuters
Collapse Of Paper Gold & Silver Market May Be Near – Sprott Money
Gold price recovery helps Barrick declare dividend – Mining.com
Goldman: Sell Gold – Reformed Broker

ECONOMY/WORLD/HOUSING/BANKING
Industrial Production Is Leaving Little Doubt – Alhambra Partners
Industrial production: Why the US is not in a recession – Bonddad Blog
Swedish Krona Climbs Against Most Peers on Strong Inflation Data – Bloomberg
Venezuela hiking gas prices for the first time in 20 years – CNN/Money
Japan’s Exports Drop Most Since 2009 as Sales to China Fall – Bloomberg
Brazil’s Rating Cut Further Into Junk Territory by S&P – Bloomberg
Indebted Steelmaker ‘Not Making Repayments Agreed upon in 2014′ – Caixin Online
Toronto Developer Delays Alberta Condos Amid Oil Crunch – Bloomberg
BofA: This Is What The Fed’s “Plan B” Might Look Like – Zero Hedge
FOMC Minutes and More – Fed Watch

 

Haven’t heard from Investment Biker Jim Rogers in quite a while and, in this interview with CNNMoney’s Nina dos Santos the other day, he’s looking a bit jowly, but he still makes a good deal of sense in his assessment of the world’s central bankers.

Highlights include:

We’re all going to pay a horrible price for the incompetence of these central bankers. We got a bunch of academics who don’t have a clue what they’re doing … This is going to be a disaster in the end and you should be very worried and you should be prepared.

Wednesday Morning Links

MUST READS
Financial panic or slow burn? – Boston Globe
China’s debt mountain is growing fast – CNN/Money
China Debt Binge Spurs New Warning from S&P – Bloomberg
Kashkari: US banks still pose ‘nuclear’ threat to economy – Guardian
ECB Bond Program Dubbed ‘Financial Dictatorship’ in German Court – Bloomberg
China sends missiles to contested island in the South China Sea – Reuters
‘Mr. Trump Will Not Be President’: Obama Goes on the Offensive – Vice News
Donald Trump’s Secret? Channelling Andrew Jackson – NY Times
Trump Supporter: ‘We’re Voting With Our Middle Finger’ – LA Times
National poll: Sanders tied with Clinton, Trump up 8 points – Politico
Why Larry Summers wants to kill the $100 bill – MarketWatch
It’s time to kill the $100 bill – Summers, WaPo

MARKETS/INVESTING
Stocks: 4 things to know before the open – CNN/Money
Can Dow make it three up days in a row? – USA Today
35% of drillers at high risk of bankruptcy: Report – CNBC
Iran says it is ‘illogical’ for it to join oil output freeze – BBC
A bond star, buried by junk, looks for daylight – MarketWatch
Things Are Coming Unglued for Canadian Investors – Wolf Street
This has been the worst quarter for earnings since 2009 – MarketWatch
Cash Hoards Hit Highest Level Since 2001 – a Buy Signal – Barron’s
Gold steadies, off early highs as equity jitters subside – Reuters
New Bull Market in Gold on Track – GoldSilverWorlds

ECONOMY/WORLD/HOUSING/BANKING
Did Someone ‘Tap’ The Atlanta Fed On The Shoulder? – Zero Hedge
Keynesianism’s Long March to the Dustbin of History – Gary North
Is There a Case for Inflation Overshooting? – San Francisco Fed
Painful spillovers from slowing BRICS growth – Project Syndicate
Sluggish wage growth takes shine off record UK employment – Telegraph
Calgary Condos Post Biggest Decline Since Financial Crisis – Bloomberg
What the Quicken Loans Super Bowl ad can’t tell us about the housing market – AEI
What Fed Chair Janet Yellen DIDN’T Tell Congress Last Week – Confounded Interest
The Fed’s interest payments to banks – Ben Bernanke
Negative rates and bank profitability – Coppola Comment

 

China’s Latest Lending Orgy

Well, you can’t fault China for not trying to resuscitate their ailing economy and flagging stock market via yet another reckless expansion of credit and debt as detailed in this Bloomberg report that includes the video below with some startling long-term data.

As I recall from my brief foray into management more than 20 years ago (one that, it turned out, I was particularly ill-suited for but was fortunate enough to learn this early in my career so I could move on), you never want to be accused of doing nothing when things are going badly and the Chinese are certainly not doing that.

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