Given the problems with SVB and Credit Suisse, it's probably not a surprise that the banking index is showing stress.
But what is going on in short-to-medium term Treasuries is far more disturbing.
If you wanted to know what the markets are predicting to happen, the story you would be getting told would sound like it was created by someone who is bipolar.
Do you want to know just how serious things have gotten? Do a Google search for 'stock market crash'. There are almost no results returned in the last couple days.
The top result is from Motley Fool. Stock Market Crash: 3 Absolute Bargains Just Begging to Be Bought
Rising inflation, War in Ukraine, and central banks finally ready to raise interest rates, means that bonds are getting massacred.
The Ndrangheta mafia of southern Italy has a deal that you cannot refuse.
Wall Street blames the coronavirus for the current crash for the same reason the Democratic Party blames Russia for losing in 2016: to avoid responsibility.
A month ago I said: "the stock market is massively overvalued. Right now the stock market is a bubble in search of a pin."
People that get too involved in the Mueller Report and the latest polls often forget that the most important political indicator is the economy.
And the economy is due for a recession.
Every year since 2009, Santa Claus came to lower Manhattan and showered presents on all the good and bad, little boys and girls.
No trade was a bigger winner than to go long in December...until this year.
The stock market got routed today.
Before today the single worst day in Wall Street history was September 29, 2008, when the Dow fell 777 points. (note: percentage-wise the worst day was the 500 point 1987 crash)
Now look at today's headlines.
This comes after the 666 point drop on Friday.
