That Popping Noise You Hear? Wall St. Banks Warning Of “Downturn”, Finally

Bubbles gonna pop, it’s a fact of life and since we have never really recovered from the “Great Recession” of 2007 except on the worthless paper the government has been furiously trying to stuff up everyones asses ever since then, this does not bode well for the economic well being of damn near everybody but especially working people.

 

Wall Street Banks Warn Downturn Is Coming

By

Sid Verma

and

Cecile Gutscher

August 22, 2017, 9:47 AM PDT August 23, 2017, 1:48 AM PDT

• HSBC, Citigroup, Morgan Stanley say end of market boom is nigh
• Breakdown in trading patterns is signal to get out soon

HSBC Holdings Plc, Citigroup Inc. and Morgan Stanley see mounting evidence that global markets are in the last stage of their rallies before a downturn in the business cycle.

Analysts at the Wall Street behemoths cite signals including the breakdown of long-standing relationships between stocks, bonds and commodities as well as investors ignoring valuation fundamentals and data. It all means stock and credit markets are at risk of a painful drop.

“Equities have become less correlated with FX, FX has become less correlated with rates, and everything has become less sensitive to oil,” Andrew Sheets, Morgan Stanley’s chief cross-asset strategist, wrote in a note published Tuesday.

His bank’s model shows assets across the world are the least correlated in almost a decade, even after U.S. stocks joined high-yield credit in a selloff triggered this month by President Donald Trump’s political standoff with North Korea and racial violence in Virginia.

 

My bold and I have to give extra credit for the bullshit excuse of trying to blame this shit on Trump.

“Downturn” can be interpreted six ways from breakfast if one is so inclined to waste time and effort.

My interpretation is that “The Great Recession” is going to look like a stroll in the park when this house of cards starts coming down.

The recovery they keep lying about is only relative to those who still have money.

The Average Joe is not among those people.

The real estate market has been in a bubble, again, and we are exactly where we were just before the crash of ’07, except orders of magnitude worse in many ways.

There has been no end of doom sayers warning about this for a long time and people have become inured to it but when no less than 5 Wall St. banks start admitting it then it is all but here and the evidence must be so overwhelming that they can no longer deny it.

Quite frankly, I don’t know what to expect as I am in no way an economist but after being around and living through several of these so called downturns in my day I am going to take this shit seriously.

Expect the worst and try to prepare for it as best as one can and if it doesn’t pan out to be as bad as you expected then what are you out?

You will still be better off than if you continued to walk around with your head up your ass pretending that everything is fine despite the overwhelming evidence to the contrary.