Marc Riboud Street seen from inside antique dealer’s shop, Beijing 1965 • US Equities “At Most Offensive Level Of Overvaluation In History” (BI) • Yellen Doubles Down: “Valuations Are At High Levels Historically” (ZH) • Goldman Sachs: 88% Chance We’re Heading Into A Bear Market (BI) • The Mystery Of Weak Wage Growth (BI) • China Factory Prices Jump As Government Reduces Capacity (BBG) • China’s Mortgage Debt Bubble Raises Spectre Of 2007 US Crisis (SCMP) • Interest-only Loans
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Piet Mondriaan Composition in color A 1917 • Tesla Shareholders: Are You Drunk On Elon Musk’s Kool-Aid? (Lewitt) • ECB Suffers from “Corporate Capture at its Most Extreme” (DQ) • ECB Still Believes In Eventual Inflation, Wage Rise: Draghi (R.) • China Credit Growth Exceeds Estimates Despite Debt Curb Vow (BBG) • PBOC Governor Zhou Says China’s 6.9% Growth ‘May Continue’ (BBG) • In China, The War On Coal Just Got Serious (SMH) • IMF Steering Committee Warns Global
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Georgia O’Keeffe Manhattan 1932 • Central Bankers Use Moment of Calm to Debate How to Fight the Next Crisis (DJ) • BOJ’s Kuroda Says No Signs Of Excesses Building In Markets (R.) • What Keeps Poor Americans From Moving (Atlantic) • Prepare for a Chinese Maxi-Devaluation (Rickards) • The Cost of Missing the Market Boom Is Skyrocketing (BBG) • Are You Better Off Than You Were 17 Years Ago? (CH Smith) • As Crisis At Kobe Steel Deepens, CEO
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Rembrandt Old man with a beard 1630 “The Cost of Missing the Market Boom is Skyrocketing”, says a Bloomberg headline today. That must be the scariest headline I’ve seen in quite a while. For starters, it’s misleading, because people who ‘missed’ the boom haven’t lost anything other than virtual wealth, which is also the only thing those who haven’t ‘missed’ it, have acquired. Well, sure, unless they sell their stocks. But a large majority of them won’t, because then
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Joan Miro Dancer 1925 • The Shoeshine Boy Moment For FANG And Friends (DR) • Valuations Are Expensive (Lance Roberts) • Central Banks Have Effectively Manufactured The World’s Biggest Economy (BBG) • ECB to Consider Cutting QE Purchases in Half Next Year (BBG) • Boeing Passenger Jets Have Falsely Certified Kobe Steel Products (R.) • Kobe Steel Scandal Expands Into Core Business Overseas (BBG) • Distressed Investors Buying Houston Homes for 40 Cents on the Dollar (BBG) • Tesla
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Fan Ho East meets west 1963 For those of you who don’t know Andy Xie, he’s an MIT-educated former IMF economist and was once Morgan Stanley’s chief Asia-Pacific economist. Xie is known for a bearish view of China, and not Beijing’s favorite person. He’s now an ‘independent’ economist based in Shanghai. He gained respect for multiple bubble predictions, including the 1997 Asian crisis and the 2008 US subprime crisis. Andy Xie posted an article in the South China Morning
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Piet Mondriaan Broadway boogie wooogie 1943 • The Bubble Economy Is Set To Burst, US Elections Be The Trigger (Andy Xie) • Fed Divide On Inflation Intensified At September Policy Meeting (R.) • UK Resigned To Endless Productivity Gloom (Tel.) • The World Must Spend $2.7 Trillion on Charging Stations for Tesla to Fly (BBG) • Bullet Train Wheel Parts Made By Kobe Steel Failed Quality Tests (BBG) • General Motors Checking Impact Of Kobe Steel Data Cheating (R.)
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Georgia O’Keeffe New York night 1929 • Stock Record Ride ‘Has Reached Epic Proportions’ – Morgan Stanley (MW) • Janet Yellen Has Finally Come To Her Senses – Somewhat (Crudele) • Nobel Economist Thaler Says He’s Nervous About Stock Market (BBG) • Catalans Call Time Out on Independence Bid, Seek Spain Talks (BBG) • China Debt-for-Equity Swaps Turn Out More Like Debt-for-Debt (BBG) • Chinese Investors Keep Pouring Money Into Australian Housing (BBG) • Kobe Steel Shares Plunge As
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Camille Pissarro Rue Saint-Lazare, Paris 1897 • Britain Can’t Cope With A Fall In House Prices (Ind.) • A Remarkable Run for Stocks Gets More Extraordinary (BBG) • Bill Gross Blames Fed For ‘Fake Markets’ (R.) • ECB’s Knot Warns of Market Correction as Risk May Be Underpriced (BBG) • Catalan President To Declare “Gradual Independence” On Tuesday (ZH) • Dear Catalans – A Message From The Chairman (Ren.) • The Rise and Fall of Emmanuel Macron (Steve Keen)
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Fan Ho In Paris 1953 Update: I never did this before, but now I think I must: change the title of an article. “Minsky and Volatility” isn’t nearly as good as “The S&P Is A Bloated Corpse”. Simple, really. The URL will be the same as before According to Hyman Minsky, economic stability is not only inevitably followed by instability, it inevitably creates it. Complacent humans being what they are. If he’s right, and would anyone
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