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Insanity: Stocks Enter New Bull Market On Day Initial Claims Hit 3.3 Million

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Source: Zero Hedge

One would think that on the day the US reported 3.3 million (!) initial jobless claims, more than 5 times the weekly peak hit during the financial crisis, and a 30-sigma event

weekly jobless claims, a 30σ event pic.twitter.com/LEO7s5TXsH

— 📈 𝙻𝚎𝚗 𝙺𝚒𝚎𝚏𝚎𝚛 📊 (@lenkiefer) March 26, 2020

… one which presages not a recession but an economic depression, stocks would be lower.

One would be wrong, because as Virus Fears abate…

Source: Bloomberg

Liquidity fears re-appear, as FRA-OIS signals renewed tightening in funding conditions…

Insanity: Stocks Enter New Bull Market On Day Initial Claims Hit 3.3 Million 2

Source: Bloomberg

… and systemic counterparty risk concerns are soaring (LIBOR-OIS spread screaming to its highest since Dec 2008)

Insanity: Stocks Enter New Bull Market On Day Initial Claims Hit 3.3 Million 3

Source: Bloomberg

Meanwhile, the Fed’s wanton monetization of debt, aka ‘helicopter money’…

Insanity: Stocks Enter New Bull Market On Day Initial Claims Hit 3.3 Million 4

… has triggered growing concerns about USA’s sovereign status, with the US default probability suddenly a hot topic again.

Insanity: Stocks Enter New Bull Market On Day Initial Claims Hit 3.3 Million 5

Source: Bloomberg

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