Collapse In Global M1 Signals A Worldwide Recession Has Arrived
by Tyler Durden
ZeroHedge.com
Mon, 01/14/2019
By now everyone has seen some iteration of this chart showing that the annual change in central bank liquidity is now negative.
Another way to visualize just the Fed’s balance sheet contraction is courtesy of this chart from Morgan Stanley which shows specifically which assets – Treasurys and MBS – are declining on a monthly basis.
When it comes to markets – where the events of December were a vivid reminder that just as QE blew the world’s biggest asset bubble, so QT will deflate it – there is a simple explanation of this negative effect of QT on Markets – in terms of both flow and stock – and it is laid out as follows from Morgan Stanley:
The Rest…HERE
