Up, Up and Away
With energy based stagflation running rampant throughout the supply chain, the Fed's preferred inflation gauge (PCE) has been at or above the top of the comfort range for almost 3 years.
Economic growth cut in half for Q1 to a 1.3% pace, the weakest in 4 years, and sales of previously owned homes dropped in March by the most since 1989.
Employers added 88K jobs in April, the smallest gain in more than 2 years... But the market does'nt care.
Jubaks latest reaffirming our position that hyperliquidity is in the drivers seat ...
"the ready availability of cheap debt is what makes the stock and bond markets -- and the U.S. and global economies -- so hard to read right now.
cheap money is keeping the current rally running, even as the U.S. economy runs out of steam, by convincing investors that stocks are undervalued even as they hit historic highs."
Meanwhile, demand for so-called junk bonds is close to its highest in a decade, while risk premiums are near their lowest level in a decade.
Bank of America CEO Ken Lewis sez the credit bubble is about to break after six years of historically low interest rates and relaxed lending criteria.
"We are close to a time when we'll look back and say we did some stupid things...
We need a little more sanity in a period in which everyone feels invincible and thinks this is different... We need a deal to go bad, as long as we're not in it."
Wells Fargo CEO Richard Kovacevich said in December that "I am not a forecaster of the future; I'm a historian. And history says this will blow up. It always has. And there will be some blood on the street."
Economic growth cut in half for Q1 to a 1.3% pace, the weakest in 4 years, and sales of previously owned homes dropped in March by the most since 1989.
Employers added 88K jobs in April, the smallest gain in more than 2 years... But the market does'nt care.
Jubaks latest reaffirming our position that hyperliquidity is in the drivers seat ...
"the ready availability of cheap debt is what makes the stock and bond markets -- and the U.S. and global economies -- so hard to read right now.
cheap money is keeping the current rally running, even as the U.S. economy runs out of steam, by convincing investors that stocks are undervalued even as they hit historic highs."
Meanwhile, demand for so-called junk bonds is close to its highest in a decade, while risk premiums are near their lowest level in a decade.
Bank of America CEO Ken Lewis sez the credit bubble is about to break after six years of historically low interest rates and relaxed lending criteria.
"We are close to a time when we'll look back and say we did some stupid things...
We need a little more sanity in a period in which everyone feels invincible and thinks this is different... We need a deal to go bad, as long as we're not in it."
Wells Fargo CEO Richard Kovacevich said in December that "I am not a forecaster of the future; I'm a historian. And history says this will blow up. It always has. And there will be some blood on the street."
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