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…
… Liquidity fears re-appear, as FRA-OIS signals renewed tightening in funding conditions…
… and systemic counterparty risk concerns are soaring (LIBOR-OIS spread screaming to its highest since Dec 2008)
Meanwhile, the Fed’s wanton monetization of debt, aka ‘helicopter money’…
… has triggered growing concerns about USA’s sovereign status, with the US default probability suddenly a hot topic again.
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