European depression coming in June: the IMF plans to bring the Greek financial crisis to a head, stock market crash this summer? Bank of America: For global economic policy makers it’s do or die time!

Wikileaks Reveals IMF Plan To “Cause A Credit Event In Greece And Destabilize Europe”

…The Greeks are understandably angry and confused; As Bloomberg reported earlier, “Greece wants to know whether WikiLeaks report regarding IMF anticipating a Greek default at about the time of the U.K. June 23 referendum on its EU membership is the fund’s official position” government spokeswoman Olga Gerovasili says Saturday in e-mailed statement.  For its part, an IMF spokesman in e-mail Saturday said it doesn’t “comment on leaks or supposed reports of internal discussions.”

Two side observations:

1. has a “Snowden” leaker now emerged at the IMF; if so we can expect many more such bombshell accounts in the coming weeks; or perhaps the reason for the leak is less nuanced: a bugged hotel.

2. it may be another turbulent summer in Europe.


Policy makers must step up for markets to avoid 2008 repeat

Either ‘last chance to buy’ or ‘last chance to sell’: B. of A. Merrill

Hero or the goat? Sydney or the bush? For global economic policy makers it’s do or die time, say analysts at Bank of America Merrill Lynch.

And that translates into an important crossroad for investors.

In their latest weekly “Flow Show” note released late Thursday, Michael Hartnett, the firm’s chief investment strategist, and colleague Brian Leung say that policy “success/failure” will dictate returns in the second quarter after a whipsaw start to the year that saw the S&P 500 SPX, +0.63%  tumble more than 10% before rebounding sharply to finish the quarter in positive territory amid wider market gyrations. See: 2016’s first quarter as a curious case of Mr. Hyde & Dr. Jekyll.

For investors, that means it’s “either ‘last chance to buy’ like late 1998 when big policy coordination/stimulus boosted macro or ‘last chance to sell’ like spring 2008 when credit crisis and debt default thereafter sparked market/macro meltdown,” they wrote.

It doesn’t get much more stark than that. With so much at stake, what’s an investor to do?

The analysts don’t go into a lot of detail, but say to watch commercial real estate, private equity and auto lending, adding, “we’re happy to be sellers.

Rising dangers show why market’s March rally is the calm before the storm

Investors shouldn’t be complacent after stocks pull out a first-quarter win

Not too long ago, after a dreadful January and rocky February, most market experts predicted the worst. After seven years, the bull market was below key technical levels. Many financial pundits predicted the S&P 500 would drop below 1800. Wall Street was filled with doom and gloom.


Why JPMorgan Believes Central Banks Can No Longer Save The Day

“We think that the recent rally in risk assets gained much from dovish actions and messages from central banks, in particular the ECB, Fed and the PBoC. One can only applaud the seriousness and pro-activeness that central banks apply to their mandates. But aren’t investors counting too much on central banks carrying the day if not the cycle?  This analyst thinks so, without disparaging their efforts, as central banks are almost out of ammo, and their tools are not well suited to handle the problems of slowing company profits and productivity.”

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Japan Trust Banks to Start Imposing Negative Rates on Clients

Jakarta Globe14 hours ago
Some Japanese trust banks will start to put negative interest rates, … on the cost of the central bank’s negative rates, sources with knowledge of the matter said.

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Reuters – ?4 hours ago?
While BOJ Governor Haruhiko Kuroda has stressed that he sees no limits to its already massive money-printing programme, many central bank policymakers are hesitant of easing now after having just adopted negative interest rates in January. “Currency …

S&P Lowers Outlook on China’s Credit Rating to Negative

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S&P kept its double-A minus rating on China’s sovereign debt, but lowered the outlook … which also this month lowered its outlook on China’s debt to negative.

ECB will not take rates to ‘absurdly’ negative levels – Coeure – ?Mar 30, 2016?
The European Central Bank will not move interest rates into “absurdly” negative territory, Executive Board Member Benoit Coeure said today. Negative rates are not the bank’s main policy instrument even if further cuts can not be ruled out, Mr Coeure added.

Brazil Central Bank’s View of Economy, Inflation Worsens

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ECB could give 1300 euros to bloc’s citizens, Nordea says

euronews1 hour ago
LONDON (Reuters) – The European Central Bank could give 1,300 euros (1,029 pounds) to every person in the euro zone if it found no other way to revive …

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