Tuesday, December 1, 2015

Shanghai Surprise: The Non-Existent Fantasy Economy

"Gamblers throwing their live savings away, mistook a casino for an economy..."

The bond market is pricing in a Fed-induced implosion...

10 yr yields (red) with Fed Funds (black).
In EVERY OTHER economic cycle, long-term yields rise when the Fed hikes short-term rates. Whereas now, yields are at Lehman lows...



Utilities with Fed rate

"sumamabitch!!!"



Financials



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