Central Banks are tapped out. Market liquidity is at the lowest level ever, Emerging Markets are "unhinged", junk bonds are unhinged, downside momentum is at Lehman levels, 3rd quarter GDP estimate just got cut in half, all while Wall Street puts on a happy face to save bonus.
Markets are down and out going into the fourth. There hasn't been a down fourth quarter in six years, since 2007/2008.
Central Banks are tapped out.
The ECB started its latest round of bond buying in March, yet the German Dax peaked in April and is down -22%. After trying everything else, Chinese Commie Capitalists banned selling. Shanghai Comp down -40%. The Bank of Japan buys stocks outright every day: Nikkei down -16%. The Fed expanded liquidity for seven years straight, ending one year ago - now, since the peak in May, U.S. stocks have fallen at their fastest rate since 1929.
Market liquidity is at the lowest level of the past 8 years, more likely EVER:
Downside momentum has reached Lehman velocity in 1/3 the time:
Global Dow is down -16%
