That's just in the last two days, and I'm sure I missed a few. The news items have been coming so fast and furious it would be impossible not to.
The Fed can't touch this and neither can the government, but you can bet they'll both try.
Next week we will get the schizoid master of them all, the Fed decision on 12/11. I am personally in the camp of either hold or cut 25 bips, depending on the EFF/FFR spread on Monday. There's a SLIGHT skew towards a 25 bips cut, but not much. In addition the slosh has been going up the last couple of months but hasn't unlocked the credit markets. The BOE cut and was "rewarded" with an opposing move in LIBOR that immediately took a big part of it back in the real world. This is the danger for The Fed - there comes a point where they lose control, and they got a stern warning from the BOE and LIBOR behavior this week.
Oh, and let's not forget the hot wage inflation print from last week. That's the sort of inflation The Fed REALLY fears, because its a genie that is very hard to stuff back in the bottle once it gets out. Still think we might get 50 bips eh? I don't think so!
As those with money go from "ok, I'll lend" to "no mas!" to "get ocularly penetrated!" the deflationary thesis gains legs, and they get longer and stronger.
Here's a quick technical look at the week ahead...
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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