Oil got hammered over 8% today. Stocks in the US 3% roughly.
This is largely driven by reality hitting China, the Ultimate Crony Capitalist State, and reality hitting investors around the world who have ridden the Fed driven asset inflation of the last few years. As we have said there are huge, massive, pockets of monetary cotton candy in markets which will collapse sooner or later.
But don’t worry, supposedly China has another dose of “stimulus” on the way. That ought to make things better.
Below are a few of the articles we have done on markets and China in the past 6 months or so for your information.
David Stockman: “The world economy, including the US, is heading into what is clearly going to be an apical deflation. The likes of which we’ve never seen in modern times.”
But who knows? Maybe we break 18,000 in the Dow next week. Heck, why not tomorrow?
*This will not all happen at one time. It took us a while to get here.