2014 Stock Market Crash Alert: Disposable Personal Income, USDJPY ‘Carry Trade’, World Currencies Chaos, Foodstamps, Weather, Equity Fund Outflow, Euro Contagion…
Something is very, very wrong
We may not know much about “Keynesian economics” (and neither does anyone else: they just plug and pray, literally), but we know one thing: when real disposable personal income drops by 0.2% from a month earlier, and plummets by 2.7% from a year ago, the biggest collapse since the semi-depression in 1974, something is wrong with the US consumer.
Argentinians horde US dollars, supplies amid economic turmoil
Stock market live blog: January losses snowball; earnings disappoint; Wal-Mart warns
Here We Go: Wal-Mart Cuts Guidance, Blames Foodstamps, Weather
While hard-hit emerging-market currencies took a breather Thursday from their recent losses, they’re not done falling, according to economist Nouriel Roubini.
“I see — given the macro risk, the political risk, the growth and inflation — further downside to some of the fragile EM,” he told MarketWatch on Wednesday.
World currencies are falling fast, but the IMF says there’s no reason to panic
A rush for the exits is underway in some world markets: Currencies from Brazil to India have been dropping fast. Growth in countries that were once the shining stars of the world economy is no longer taken for granted. And political crises in Ukraine, Thailand and elsewhere have cast doubt on the readiness of politicians to act.
Equity Funds Have Largest Weekly Outflow In Over Two Years
Japan’s core CPI — which, as Lutz notes, is the bank’s favorite price metric — jumped 1.3% in December.
That beat economist expectations for the second straight month.
“Although the figure is still below the central bank’s 2% inflation target, it marked the fastest rise in over five years,” says Lutz. “This has a bid under the Yen, and the unwind of the USDJPY ‘Carry Trade’ is a massive headwind this AM for the markets.”
USDJPY 102.00 Is The Line In The Sand
King Dollar: Emerging Markets Beg the Fed to Keep Printing
Investors yanked $9 billion from emerging stock and bond funds during a turbulent past week, with equities seeing their biggest outflow in 2-1/2 years, banks said on Friday citing data from Boston-based fund tracker EPFR Global.
EPFR had released data to clients late on Thursday showing emerging equity funds lost $6.3 billion in the week to January 29, the biggest weekly outflow since August 2011.
This morning on Bloomberg radio, they were discussing how India and many other emerging market countries are basically begging us not to stop printing at this point.
For those that don’t follow the markets I will explain this super easy. When we print tons of extra money, investors can’t find enough high return investments in the US and go look for risky stuff in third world countries. When they start to tighten up the money supply in the US, all of the investors pull their money out of the high return/high risk investments in emerging markets and bring it back home. A market term for that is “hot money.”
So anyway, we have the world begging for more dollars.
Emerging market funds lose $9 billion in past week: Data
Sales Of Barbies Collapse
“Secret” Meetings on Greece? Say It Ain’t So; Euro Contagion Coming Up
How long can secret ECB meetings stay secret? Allowing time to write a story, the answer is something like 3 days, if that. The Wall Street Journal today reports on a secret meeting that took place Monday evening regarding Greece finances.
Please consider Greece Creditors, France, Germany Held Secret Meeting Monday.
Now GREECE back in the picture:
Greece Is Back: Germany, France, Creditors Hold Secret Meeting Due To Greek Bailout “Mounting Concerns”
UMich Confidence Drops Most In 3 Months
Cashin: We’re getting ‘awfully close’ to end of bull market