Thursday, September 21, 2017

Denial Is Not A River In Egypt

Banks are trading at the top end of their multi-year range compliments of the flattest yield curve since the last two recessions. In other words, bonds are calling out the Fed on their hubristic bullshit, even as gamblers are in extreme denial. Soon we will be seeing the rest of the psychopaths called out as well.  What have we wrought in the past year of non-stop lying bullshit?

But first, 
ZH: Today's Trader Ingenues Are Confused. Who To Believe Data or Dunces? 

It's called 'sell' son, grow the fuck up...

Let's go one massive lie at a time...

First, China's economic recovery

China has had enough Yuan revaluation so now they're letting the currency slide again. Basically all they did was clear out all of the Yuan short-sellers, so now they are back in easing mode:

"The People's Bank of China will remove an October 2015 measure that made it more expensive for onshore banks to use currency forwards, as well as a January 2016 reserve requirement on foreign banks' yuan deposit"

Which comes at the exact same time as the EM currency basket is rolling over deja vu of 2015:

Tomorrow OPEC meets to blow smoke up each others asses again about production cuts. Shorts have been covering for three months straight. 

Any questions about what happens next?

Tomorrow is an important day for Brexit as Theresa May is outlining her plan to ensure smoothe exit. The only problem is that no one from the EU is attending:

"No European Commission officials will be travelling to Florence to attend Theresa May’s landmark speech on the Brexit negotiations, The Independent can reveal, in what appears to be a snub to the Prime Minister"

"Let's fly to Italy to have talks with ourselves"

Uncle Sam's long-standing strategy of marginalizing recalcitrant states until they lash out in fury, is in full force. Now Trump is going to starve them into action:

Keynesian bombing of foreigners is the must-own recession trade:

In other news, gamblers from Bitcoin to internet stocks are starting to get pole axed.