Rising Gold, Plunging Crude, Freezing Credit------The Tugg Speedman Market

In the film “Tropic Thunder,” the world called on Tugg Speedman (Ben Stiller) when the earth was on fire (asset bubbles) then went into a global freeze.

Yes, Tugg, the world is in a global freeze. Gold is on the rise again (>$1,200), European CDS (as measured by Portugal) are rising, while black gold (aka, crude oil) is falling below $27. Look at these prices since The Fed raised the Fed Funds target rate on December 16th.

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European banks, like Deutsche Bank, are melting.

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Global equity markets are in a state of global meltdown as well.

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And the 10Y-2Y Treasury yield curve slope keeps on falling.

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The prospect of negative interest rates (already in Europe) isn’t working.

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The problem, of course, is that Federal Reserve Chair Janet Yellen isn’t Tugg Speedman.

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Negative interest rates from Central Banks are truly worthy of Simple Jack.LrGt7JP

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.

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