Citi is out with a super-duper bearshitting report, just in time for the weekend. With it, I am sure they intend to scare people and look incredibly well learned during cocktail parties over the coming weekend.
Led by Stubbs, a well pronounced bear, Citi is suggesting the collapse in oil will continue and the dollar will strengthen, creating a ‘negative feedback loop that is sure to astound and leave investors staggered with mammoth sized losses.
“It appears that four inter-linked phenomena are driving a negative feedback loop in the global economy and across financial markets,” the analysts write, citing the resilient U.S. dollar, lower commodities prices, weaker trade and capital flows, and declining emerging market growth.
“It seems reasonable to assume that another year of extreme moves in U.S. dollar (higher) and oil/commodity prices (lower) would likely continue to drive this negative feedback loop and make it very difficult for policy makers in emerging markets and developing markets to fight disinflationary forces and intercept downside risks,” the analysts add. “Corporate profits and equity markets would also likely suffer further downside risk in this scenario of Oilmageddon.”
“But, the collapse in oil/commodity prices and sharp fall in the pace of world trade means that these same economies will likely experience an aggregate current account deficit for the first time since 1998,” says Citi. “In turn, this is likely to put pressure on SWF and broader emerging market liquidity as governments and emerging market economies would need to ‘lean’ on reserves in order to maintain economic, political and social stability. This has clear feedback loops across emerging markets.”
Citi concludes: “We should all fear Oilmageddon,” Citi concludes. “Global recession, as we define it, would leave nowhere to hide in equities. Cash wins.”
GET ON THE ARK.
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Four Days After Predicting Oil Will Double, T. Boone Pickens Sells All Oil Holdings
http://www.zerohedge.com/news/2016-02-04/four-days-after-predicting-oil-will-double-t-boone-pickens-sells-all-oil-holdings
bahahahahahahaha
POSITIVE FEEDBACK LOOP! My head is about to explode. Am I taking crazy pills?
No, you are not taking crazy pills. It’s just that there is a colloquial and incorrect usage of the term negative feedback loop to mean a feedback loop going in a direction that is considered to be a negative direction. 99.9% of people use the term in this way.
When, of course, the correct technical meaning of the terms is that positive feedback loops keep going in the same direction, even if the direction is a “negative” one. Whereas negative feedback loops reverse the original direction.
But no one knows that who has not seen and used these terms in a technical area or in a technical way. At least you have one person, me, who knows what you are talking about. But only because I used to teach college level statistics and I took a number of scientific and technical courses in college.
You taught statistics not philosophical mind analysis?
Interesting timing, seeing as oil currently looks a little stronger and the USD quite a bit weaker.
Yes, the usual kind of timing. Bears talk most bearishly at bottoms.
Go ahead, make my day – Inspector Callahan
Somehow he doesn’t see the inflation that the Fed sees.
Now we know Devil Dog’s true identity. His real name is Stubbs.
Here is Fly’s latest video from Devil Dog, the 2nd video on this page. Look and decide for yourself whether or not Stubbs is the same as Devil Dog.
http://ibankcoin.com/flyblog/2016/02/03/the-rationale-behind-negative-rates/
They are 1 year 4 weeks and 1 day too late. Herozedge told its listeners This oil thing is the Real Deal.