It is the 30th of April 2017

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Citi: Central Banks "Took Over" Markets In 2009; In December The "Unwind" Begins

Citigroup's crack trio of credit analysts, Matt King, Stephen Antczak, and Hans Lorenzen, best known for their relentless, Austrian, at times "Zero Hedge-esque" attacks on the Fed, and persistent accusations central banks distort markets, all summarized best in the following Citi chart...

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UBS Blames Fed For "Crisis High" Subprime Defaults; Says Auto Is Just The Beginnning

For months now we've been writing about the mysteriously rising subprime delinquencies afflicting auto ABS structures despite repeated confirmations from the Fed and equity markets that 'everything is awesome' (see "Auto Bubble Burst Begins As Subprime Delinquencies Soar To 2009 Levels" and "Signs Of An Auto Bubble: Soaring Delinquencies In These 266 Subprime ABS Deals Can't Be Good" for a couple of recent examples).

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Albert Edwards: This Is The Reason Why The Market Doesn't Believe The Fed Any More

While it was generally a quiet day in the market, an unexpected tension emerged today: first central banker incubator Goldman Sachs, and then RBC both made the case that Janet Yellen has not only failed to communicate what yesterday's rate hike means, but that the Fed has effectively lose control of the market, by unleashing just the opposite reaction of what the Fed had intended: in fact, as Goldman explained, the response to the market was the equivalent of "almost one full cut in the federal funds rate." In other words, instead of hiking, the market interpreted the Fed's action as a rate cut, which according to Goldman will force the Fed to explain that the market was wrong, prompting even more volatility when the market's inevitable cognitive dissonance hits.

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