Loading ...Tonight, Kuroda (the JCB head) gave a nice speech about playing Draghi — “what it takes”, you know.
Nobody believed him. As I write this the Nikkei is down over 500 points, 3.5%. His “rally” is now, for all intents and purposes, gone.
They shouldn’t believe him either; negative interest rates are nothing more than a scam as I’ve pointed out — they are the central bank equivalent of “Beatings will continue until morale improves.”
How’s that work for ‘ya, if you don’t mind my asking?
There’s a bigger problem afoot, however — I’ve seen some analysis that say that not only Deutsche Bank may be in trouble but so may other major international institutions — including Citibank. One of those people believes Citi is a zero.
Needless to say if that’s true — or even if it’s not, but some of the other major International financial institutions are (e.g. Deutsche Bank) our markets won’t be trading anywhere near Dow 16,000 or S&P 1900. More like Dow 6,000 and S&P 700 are on deck, if we’re lucky.
Yep, a round-trip from 2009.
Now that would be quite the kick in the nuts, and honestly — we have it coming due to our refusal as citizens to demand and enforce a return of the rule of law and an honest accounting of these firms liabilities and assets — with nice long prison terms for those who have lied.
Since we didn’t, and we still don’t, we get to endure what’s on tap now instead of taking our medicine then and being well on the road to actual recovery.
No Gertrude, another shot of heroin will not cure your drug addiction……