The globalized economy is a colossal Ponzi Scheme in which the vast majority survive on the bread crumbs falling off the table. The possibility of 7 billion people achieving a consumption-oriented lifestyle is zero, so the World Bank conveniently set the poverty line at $1.25/day to legalize global slavery. As long as someone else's children are doing the suffering, it's "all good". Post-2008, this illusion was extended merely by plundering all future generations.
Thursday, December 1, 2016
BINARY Core Meltdown Phase. NO WAY OUT.
Either yields keep rising, monkey hammering eight years of accumulated global ponzi debt, dividend stocks, real estate, Muni bonds, Emerging Market currencies, and the entire Nasdaq growth complex which had extrapolated a 0% discount rate into infinity...
Human history's most crowded cyclical "reflation" trade unwinds violently...
"Economists expect that hiring picked up and the economy added 175,000 jobs in November, but markets are bracing for an even higher number, north of 200,000."
"That's the buzz," said Art Cashin, director of floor operations at UBS. It was also the speculation in the bond market Thursday, where traders used the Friday jobs report as part of an excuse to sell, driving interest rates sharply higher. Cashin said there's speculation that weather-related hits to hiring in October may create a stronger-than-expected spring-back in November."
The irony that a "too hot" jobs report could implode this entire Ponzi scheme can't possibly be overlooked...
One year Treasury yield (red) with % of S&P 500 above 200 dma:
And, if the number is weak, then this unwinds. Again... USDJPY carry with Financials: