David Stockman

It Begins: Chinese Business Conditions Crash Most On Record

irst, here is China’s daily coal consumption which have barely pushed off the lows, and are roughly 50% where they were a year ago this time.           https://www.zerohedge.com/economics/it-begins-chinese-business-conditions-crash-most-record   To access this post, you must purchase Monthly Subscription, Quarterly Subscription or Annual Subscription.

More Fake Monetary Stimulus—ECB Version

And you can just substitute Mario Draghi’s April 2012 prognostication for anything and everything Christine Lagarde will be saying over the coming weeks maybe months. For however long it is she believes she can plausibly deny reality. That is, until the bond market view is either meaningfully, completely withdrawn for once, or proved correct for …

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The Jig Is Up! The Black Bats And the Defenestration Of The Central Bankers

Let it be said that historians will surely marvel—and at some point soon—about the grand delusion of the present era. Namely, the near universal belief that central bankers could print, peg and palaver the main street economy into unfailing expansion and ever rising prosperity and that there were essentially no macro-risks to soaring stock prices …

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No! The Fed Will Not “Save the Market”––Here’s Why

A very convenient conviction is rising in the panicked financial netherworld that the Federal Reserve and its fellow dark lords will “save the market” from COVID-19 collapse. They won’t. I already explained why in The Fed Has Created a Monster Bubble It Can No Longer Control (February 16, 2020) but it bears repeating.       https://www.davidstockmanscontracorner.com/?p=387839&preview_id=387839&preview_nonce=19fcee1c83&_thumbnail_id=-1&preview=true   …

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Subprime Credit Card Delinquencies Spike to Record High, Past Financial-Crisis Peak

The rate of credit card balances that are 30 days or more delinquent at the 4,500 or so commercial banks that are smaller than the top 100 banks spiked to 7.05% in the fourth quarter, the highest delinquency rate in the data going back to the 1980s (red line).             …

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Did The Market Just Get Infected?

That correction came hard, and fast on Thursday and Friday. For the week, the market declined, but it was the “5-Horseman Of The Rally” (Apple, Microsoft, Google, Facebook, Amazon) which led the way lower. This is the first time we have seen a real rotation out of the “momentum chase” into fixed income and was …

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It Starts On The Periphery—FX Instability As A Harbringer of Risk Off

I view heightened currency market instability as a harbinger of “risk off” de-risking/deleveraging. Increasingly volatile and unpredictable currency swings engender a risk-mitigating reduction in speculative leverage. This, on the margin, reduces marketplace liquidity while weighing on market prices. Such dynamics typically unfold at the “Periphery.” And it is the “Periphery” that happens to be increasingly …

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Fire In The Hole! Why The Eccles Building Should Burn To The Ground

The level of Fed group-think sophistry, circularity and plain old humbug has gotten so bad that there is nothing left to do other than what the British Navy would have done if the Eccles Building had been there in 1814. Namely, burn it to the ground.