Acronyms
Markets remain edgy today, with SPX futures current trading down 2% from Monday’s limp close. Last week’s 11% intraday rally seems like a long time ago in a galaxy far, far away.
Two Observations
Macro Man’s a bit pressed for time today, so he’ll confine today’s effort to making two observations:
Back of the queue!
While the newsflow continues unabated, market engagement remains tepid at best; as noted, many punters (and banks) seem content to limp into year-end.
What Does 4 Trillion Yuan Buy?
Friday was a milestone in the evolution of the ongoing financial crisis. No, not the employment data, which was execrable (and prompted Goldman to raise their unemployment rate forecast to an eye-watering 8.5%.) In fact, Friday was notable because it was the first time in quite a while that Macro Man can recall being bored at the office.
Hats Off
Zowie!
Macro Man tips his hat to Merv the Swerve and the Bank of England’s Monetary Policy Committee. Your author has been critical of Mr. King in the past, but is pleased to see that Merv has belatedly seen the light; namely, that policy easing is required to prevent depression, not recession.
It’s Raining Vols
So at last, the election is over. After weeks of facing accusations of being an Obama supporter in the office and an Obama hater in cyberspace, Macro Man can go back to focusing exclusively on markets and macro.
Markets seem to be in some sot of weird limbo at the moment. The acute feeling of crisis seems to have passed, yet has hardly given way to any sort of euphoria. As is generally the case, the slow grind higher is the most painful follow-through to a drop down the elevator shaft.