User login Username: * Password: * Create new account Request new password Log in Zero Hedge Reads Acting Man Alt-Market Bearish News Benzinga Boom Bust Blog Capitalist Exploits China Financial Markets Chris Martenson's Blog Contrary Investor Credit Writedowns Daneric's Elliott Waves DealBook Demonocracy Dr. Housing Bubble ETF Daily News ETF Digest First Rebuttal ForexLive Gains Pains & Capital Global Economic Analysis Hedge Accordingly Implode-Explode Investing Contrarian Jesse's Cafe Americain Liberty Blitzkrieg Market Folly Market Montage Max Keiser Minyanville Mises Institute Naked Capitalism Of Two Minds Oil Price Peter Schiff Rebooting Capitalism Shanky's Tech Blog Slope of Hope SmartKnowledgeU Blog StealthFlation Stratfor TF Metals Report The Burning Platform The Daily Crux The Economic Populist The Hammerstone Group The Market Ticker The Trader The Vineyard Of The Saker Themis Trading Value Walk Variant Perception View From The Bridge Wolf Street Home Matt King:"The Risk Is That Central Banks Created A Monster That Drives The Economy On The Way Down"

"While most sellside "research" has traditionally been complete garbage, either meant to boost soft dollar revenues and build client goodwill by giving one-on-one "expert network" meetings with management, or a macro echo chamber of equity strategists all of whom are terrified to stray from the penguin, or is it lemming, flock (its only utility is to give insight into whatever the prevailing groupthink consensus is, allowing an easy opportunity to fade it) and desperate to be as optimistic as possible (there is little upside on Wall Street to be a pessimist or a realist) there are the occasional voices of profoundly insightful, "variant perception" views from within the big banks, almost exclusively from the credit, and rarely if ever equity, division. Names such as BofA's Michael Hartnett, DB's Jim Reid and Dominic Konstam, and of course, Citigroup's Matt King.

What makes these analysts unique is that they tell the truth as they see it, unpleasant as it may be (some reading between the lines may be required) even if it means breaching protocol and launching internal scandals over "client communication objectives." Two weeks ago, Dominic Konstam predicted, accurately, that the Fed's rate hike will be tantamount to policy error (as we showed by the market's response on Thursday and Friday). Then, taking it a step further, last Thursday we showed Hartnett's presentation how the Fed's rate hike has unleashed the next bear market.

Now, it's Matt King's turn, to explain wny the "risk is that central banks have now created a monster such that markets drive the economy, if not on the way up, then certainly on the way down."

at http://www.zerohedge.com/news/2015-12-20/matt-kingthe-risk-central-banks-created-monster-drives-economy-way-down