Wondering by us bank stocks are doing well?
Since the introduction of the Bank Term Funding Program (BTFP) in March, there is a nice arbitrage opportunity for banks - watch out on the chart below the gap between the rate on the Federal Reserve’s nascent funding facility and what the central bank pays institutions parking reserves. Since March / SVB crisis, the BTFP-Fed Arb continues to offer 'free-money' to banks - and usage of the BTFP has risen by $38BN since the arb started to exist. Source: Bloomberg. www.zerohedge.com
Less and less Americans are getting married.
This is negatively impacting family formation and leading to a slower population growth rate as a result. Source: Markets & Mayhem, Bloomberg
On January 10, the GDPNow model nowcast of us real GDP growth in Q4 2023 is 2.2%
Source: Atlanta Fed
Over the next several weeks, governments from the US, UK and the eurozone will start flooding the market with bonds at a clip rarely seen before
Saddled with the kind of bloated deficits that were once unthinkable, these countries — along with Japan — will sell a net $2.1 trillion of new bonds to finance their 2024 spending plans, a 7% increase from last year, according to estimates from Bloomberg Intelligence.
FASTEST easing of Financial Conditions in HISTORY
Source: WinSmart, BofA
The Magnificent Seven have a larger market cap than any country's entire stock market except the US
Source: Barchart
Remember the 70s?
Source: Win Smart
This chart from Eurasia Group's Top Risks 2024 Report shows how far Americans' trust in institutions has eroded
And the chart gives a feel for the upcoming election campaign, which is unlikely to be a trust-building measure. And should Trump win, he 'would take steps to consolidate exec power, weaken checks & balances, & undermine the rule of law,' the authors write. Source: HolgerZ
