Thursday, January 21, 2016
The Economy's Lehman Moment. Was Today.
While Wall Street was grabbing up Netflix shares at a 20% discount, economic expectations fell off a cliff in the past few days...
1 year treasury yields with inflation (deflation) expectations (red):
Long-term inflation imputed from TIP:Treasury spread:
Treasury:High Yield credit spread:
As it was in 2008, financial stocks are getting monkey hammered:
Financials with 1 Year Treasuries (log scale):
We've seen this movie before
The most leveraged bank in the world, Deutsche Bank, is going full Lehman:
Posted by Mac10 at 4:20 PM