Confirmed coronavirus cases almost doubled over the past week to 67,000. It’s only fitting that global stocks rally to record highs as the faltering China Bubble places the global Bubble in serious jeopardy.
Central bank monetary stimulus has succeeded in completely turning risk analysis on its head. In all the craziness, China fragilities are a positive.
Welcome to The First Major Pandemic Scare for –after a most freakishly protracted boom – a highly integrated world. Here’s what it could mean.
Any development posing risk to China’s vulnerable Bubble rather quickly becomes a pressing global issue.
We’re witness to historic developments across global financial markets that extend far beyond an equities melt-up.
What was deemed acceptable monetary policy badly mutated. Seemingly perpetual bubbles have consequences.
Avoiding market instability is the Fed’s priority.
The passing of Paul Volcker marks the end of “the greatest generation” of monetary policy stewards.
It’s repo madness for the financial sector but our federal government continues to command the debt bullet headed for the asset bubble.
Bear markets and recessions have been rescinded. Stocks always to up. Debt and deficits don’t matter. The Beijing meritocracy is up to any challenge. Global central bankers have things well under control. We shouldn’t underestimate Craziness Extremis. But prolonged market distortions come with grave consequences.