If these problems in major economies collide, it could spell global financial disaster soon, and it feels like we need some urgent solutions, but we’re not getting them. On top of that, the recent Treasury bond auction didn’t go so well, which adds to worries about the U.S. debt piling up and how Wall Street can handle it.
Japan currently holds 20% of US Treasury Bonds. If a sell-off occurs, it will be a disaster for the Dollar.
— X Money (@ledungbuild) October 14, 2023
Massive move in the $VIX despite the small move in $SPX. But $VVIX got the memo as did $TDEX.
(TDEX index calculates the cost of options that hedge against a THREE standard deviation drop in price.)
Translation: TDEX as well as gold and oil volatility were lit!! Folks were in… t.co/Jyw0V9Dndb
— Samantha LaDuc (@SamanthaLaDuc) October 13, 2023
Big vs. small caps
Watch for times when the generals lead but the soldiers don’t follow. pic.twitter.com/G5txzCUiR6
— Otavio (Tavi) Costa (@TaviCosta) October 13, 2023
US #consumers #RetailSales 📉 🥶t.co/ArmvAC0jvr
— Invariant Perspective (@InvariantPersp1) October 13, 2023
Respect the lag like it's summer 2000.
Have a seat on the train, or plane, or whatever.
Have a nice evening. pic.twitter.com/lMxmMrzbBh
— Don Johnson (@DonMiami3) October 4, 2023
A World Economy in Trouble Points to Global Catastrophe
Global economic turmoil looms with the U.S. facing a dangerous spike in Treasury yields and a potential credit crunch, China navigating a burst housing bubble, and Europe teetering on recession and a renewed sovereign debt crisis. Concurrent crises in key economies may plunge the world into a severe financial disaster by mid-next year, demanding urgent, yet currently unforthcoming, policy responses.
Treasury Auction in Weak Demand Amid Fears That Soaring US Debt Will Overwhelm Wall Street
Weak demand in a recent Treasury bond auction raises alarms as the U.S. sells $20 billion of 30-year bonds, with dealers absorbing an unusually high 18% of the supply. The narrow auction tail and rising yields reveal declining demand amidst surging federal deficits and the Federal Reserve’s quantitative tightening, fueling concerns over Wall Street’s ability to handle the escalating U.S. debt supply.
Households on Thin Ice
Skyrocketing vehicle ownership costs, now hitting an average of $12,000 annually, alongside surges in other essential expenses like healthcare, are placing American households in a precarious financial situation. The substantial uptick in prices for both new and used vehicles post-2020 and ballooning big-ticket essential expenses are shrinking budgetary flexibility, indicating an increasingly fragile economic stability for numerous households amid these escalating costs.