Somehow the world got hijacked by the biggest fools in human history. Rush Limbaugh and Putin take turns manipulating their Manchurian Candidate. The alt-right provides the steady flow of obfuscating disinformation giving cover to theft in broad daylight. The sheeple are wholly desensitized to rampant corruption. 2019 is the year of re-coupling. To reality. Who so ever is not sick of this incessant lying will be owned by it for days to come...
On the topic of unfettered corruption, Wall Street got everything wrong in 2018:
Dec. 28, 2018:
What went wrong in 2018 was mostly due to trade wars and rate hikes. Which explains why these proven jackasses are optimistic for 2019:
Barron's annual circle of jerks:
Barron's annual circle of jerks:
One year ago:
"Don't worry, 2019 will be great. Just like 2018. Because if it's not, we'll all be out of a job anyways"
Recall, 2018 was the worst year ever in terms of number of asset classes declining: 90% of asset classes down:
It was a dubious achievement which should have been ample warning that ALL global asset classes are now correlated to the downside, on an unprecedented scale.
To kick things off in style, the New Year was heralded by a flash crash in the world's carry currency. Which "coincidentally" came at the mid-point of the global RISK ON Santa Rally.
But that was ten days ago, so we can understand why it has long since been forgotten:
"speculators may be readying for a further attack on Japanese retail positions, should a similar opportunity arise, according to market participants. The next holiday up is Jan. 14."
Another bonanza ignored by global markets is the burgeoning recession in Europe which we learned of this week:
"A dramatic plunge in German industrial activity late last year raised the risk that Europe’s largest economy will slip into recession."
It's against this backdrop that the ECB has now curtailed economic stimulus:
The world's second largest economy also showed further signs of slowing this week:
"In a snapshot of the state of the country’s economy, the China Passenger Car Association reported that car sales fell 5.8% last year to 22.35 million vehicles. This was the first annual decline since 1990...Globally, this resembles a motorway pile-up for major international car brands as China is the largest auto market in the world."
Not to be outdone, U.S. recession risk reached a six year high this week:
Now we know why volatility picked up in December.
Because the "safe havens" imploded:
Because the "safe havens" imploded:
Over a trillion dollars squandered in the biggest theft in human history. A borrowed tax cut for the bailout class, and higher interest rates for the rest of the planet at the end of a ten year debt binge.
"Forget recession, trade wars, rate hikes, quantitative tightening, government shutdowns, deficits, imploding bubbles, oil shock, housing implosion, profit warnings...just be fat, dumb, and happy. Being used up, IS the system."
