Thursday, February 18, 2016

Seven Years of Peddling Fiction Visualized

Today's mega-dunces have convinced themselves that now markets are wrong and Ponzi bureaucrats are right...

"Who is right, the market or the Fed?"

Stop me any time.

Below are 10 Year yields (red) versus 1 Year yields. Spot the missing recovery. In EVERY other recovery in the past 30 years, short-term rates NORMALIZED to meet long-term rates (note same scale, right). Except this one...

Output gap:
Look up, look down. It's the case of the missing recovery, which is now in the Cayman Islands...

"Anyone who believes I know ANYTHING about the economy, is peddling fiction (applause)".

In other words, per usual, the Idiocracy is exactly 180 degrees wrong. Long-term treasury yields are not too low, they are too HIGH. If Bulltard (below) is right, and the rate cycle is over, then long-term rates have to fall. And they are falling.

This just in:

From the first article above:
"the yield on 10-year debt fell below 1.60 percent this month before recovering to back over 1.75 percent on Thursday. According to Deutsche Bank AG Chief International Economist Torsten Sl√łk, that's still far too low."

At the end they were taking advice from insolvent banks. Yes, again:
Torsten Slok, meet your new job bagging groceries, son. You're lucky it lasted this long. You should have worked at the Fed where FULL RETARD is a job requirement: