One of Brian’s Favorite Quotes
[The French Assembly’s] first step should be, to get themselves divided into two chambers… the Noblese and the Commons separately. The second, to persuade the King, instead of choosing the deputies of the Commons himself, to summon those chosen by the people for the Provincial administrations. The third, as the Noblesse is too numerous to be all of the Assemblee, to obtain permission for that body to choose its own deputies. Two Houses, so elected, would contain a mass of wisdom which would make the people happy, and the King great; would place him in history where no other act can possibly place him. They would thus put themselves in the track of the best guide they can follow; they would soon overtake it, become its guide in turn, and lead to the wholesome modifications wanting in that model, and necessary to constitute a rational government.”
— Thomas Jefferson (1743–1826) to Mme de Tesse
1787. ME 6:105
Futures Are Getting Slammed (DIA, SPY, QQQ, IWM, TLT, BOND)
REUTERS/Darren StaplesBond yields are collapsing again.
December retail sales were a big disappointment, and now stock futures are getting slammed and bond yields are tumbling.
Wednesday’s market reaction is reminiscent of the bond “flash crash” seen on October 15 when yields fell more than 30 basis points in just a few hours, as that move also followed a worse-than-expected retail sales report.
Near 8:45 am ET, the 10-year yield fell to as low as 1.781%, while the 30-year bond yield fell to as low as 2.392%, a new record low.
Stock futures were getting slammed following the news, with Dow futures down 241 points, SP 500 futures were down 26 points, and Nasdaq futures were down as much as 47 points.
In December, retail sales fell 0.9% and excluding the price of autos and gas, retail sales fell 0.3%.
Gasoline sales were a major loser in December, falling 14% when compared to the same month last year and falling 6.5% compared to the prior month.
Here’s the complete collapse in 10-year yields.