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):

"Never mind"

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:

S&P / $USD ratio: