There have been five globally coordinated reflations since 2008, each one weaker than the last. We live in a society full of dedicated con artists, and the biggest one is now President...
"Full speed ahead"
In the past week, both the U.S. and China tightened monetary policy. Meanwhile rumours swirled as to when Japan and Europe would join the tightening party. In other words, no major Central Bank is easing policy, for the first time since 2009.
And yet, as we see, this is the FIFTH reflationary headfake since 2009, compliments of global coordinated easing. Each one ended the exact same way - lower yields and lower commodity prices. With the four major CBs taking their foot off the gas for the first time in 10 years, we need not assume any different outcome this time around.
German 10 Year with Oil:
Getting back to option Skew, this is the ratio of Skew to the Nasdaq VIX. In a nutshell this is massive bets on a crash as a ratio of hedging. It's the Risk:Reward ratio, and it has never been more "skewed" towards risk...
