Bob (Janjuah) Is Back... And He Is Pissed (Chief Markets Strategist at RBS)

Zero Hedge ^ | 11/02/09 | Bob Janjuah

[TigerLikesRooster]

Bob (Janjuah) Is Back... And He Is Pissed

Submitted by Tyler Durden on 11/02/2009 10:53 -0500

Asset Bubbles banking banks Ben Bernanke bernanke Bob Janjuah British Pound Bunds C China CPI Credit Debt Deflation Demographics earnings ECB economy Equities Euro European Central Bank Fail Failures Fiat FX GDP Gilts Gold greed Gross Domestic Product History IG Inflation ISM Japan Key money pay policy prices RBS Recession risk stocks Turkey Unemployment United Kingdom US USD USTs Volatility

Bob's World: Happy Christmas, Cold Turkey Time

There are 5 things that really matter now: There are 3 'players' - the Private Sector ('PS') individuals, non-fin'l & fin'l corporates), the Policy Maker ('PM') (Govt., Central Bankers, Regulators), and the Financial Sector ('FS') (the Market, the big institutions); And there are 2 BIG defining 'forces' - Balance Sheets (incl. the Cost of Capital), and Growth (Final Demand). Each of these players and forces are linked to each other, influence each other, and rely on each other, in Good AND Bad ways. Let's take a closer look at each:

Private Sector:

IMHO, the PS 'gets it'. They KNOW THEY BORROWED TOO MUCH, are suffering, and reacting by spending less, saving more and borrowing less. They are repairing their overly indebted balance sheets. This is a multi-yr trend in the face of employment/earnings fears, uncertainty around final demand, the certainty of higher macro-economic volatility, declining demographics, and confusing messages from PMs ('we have a major debt problem, so go out and borrow more!!!). The PS is Angry, Fed-Up with being taken for a ride (perceived, if not actual) all the time by the other 2 players, and seems to have lost its faith and trust in them.

[TigerLikesRooster]

Ping!