“What goes up, must come down, spinning wheel got to go around…, You got no money and you got no home, spinning wheel spinning all alone, Hey your talking about your troubles and you never, never learn, ride a painted pony let the spinning wheel turn.” Do you find a directing sign on the straight and narrow highway…” (Spinning Wheel | by Blood Sweat & Tears | www.youtube.com/watch?v=kK62tfoCmuQ ) Blood Sweat and Tears didn’t know in 1969 that their lyrics would accurately describe world markets and central banks in the second half of 2015. The markets are going up and down, the central banks have no directions and no money and have completely deviated from the straight and narrow fiscal highway, via massive non-stop intervention.
There is so much financial information flying across the internet, newspapers and TV, going in every direction you could think of. The result is no one knows what direction to take, so they do nothing. The only thing everyone agrees on is that there is no agreement, no clear direction and that uncertainty reigns. Beneath this back drop the third quarter ended and the fourth quarter began and $11 trillion of global wealth was wiped out and the respect and confidence in the world’s largest central banks is waning. The IMF and Central bankers have been meeting in Peru and many of the participants along with US business leaders are tired of the Federal Reserve’s lack of direction and inability to make a firm decision. The Fed has lost credibility and global markets are focusing attention elsewhere, Janet Yellen and the Fed are fast becoming more and more irrelevant, much like President Obama has.
Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis. – WSJ
Finding well-paying jobs is becoming more difficult, defaults are increasing, and many companies are announcing layoffs. The Atlanta Fed lowered growth estimates for the third time this year to.9% and joining the IMF who lowered global growth for the third time as well.
$11 Trillion in Global Stock Market Wealth Was Wiped Out In Q3 & It’s Not Over (10-3-15)
Once the Biggest Buyer, China Starts Dumping U.S. Government Debt (10-7-15) | WSJ
Atlanta Fed’s Q3 ‘GDPNow’ Forecast Plunges to 0.9% (10.1.15) http://globaleconomicanalysis.blogspot.com/
The Big Jobs Miss (10-2-15) WSJ | http://www.wsj.com/articles/the-big-jobs-miss-1443828276
Why September’s Lousy Jobs Report Isn’t Surprising (10-1-15) NY Post
Wal-Mart Preparing to Cut Hundreds of Headquarters Jobs This Week (10-1-15) WSJ
Fed Has Caused Global Uncertainty (10-9-15)
Fed’s Policies How Wrong Have They Been (10-5-15) Bloomberg Video
One Chart That Shows the Federal Reserve Is Losing Credibility (10-5-15) http://www.bloomberg.com/news/articles/2015-10-05/one-chart-that-shows-the-federal-reserve-is-losing-credibility
A Core Tenet of How Central Bank Stimulus Supports Growth Doesn’t Fit the Data, According to Deutsche Bank (10-5-15)
The 5th Convergence Why This is Not a Buy-and-Hold Market! (10-2-15) Harry Dent