Financial Stability Could Lead to Instability

Check out the accompanying pdf and chart collection. (1) Slow walking toward the fast-approaching elections. (2) Eight possible outcomes. (3) Gridlock would be bullish. (4) Market needs to mark time to buy time for earnings to catch up. (5) S&P 500 forward revenues and forward earnings remain on recovery paths. (6) The Fed’s lending facilities aren’t lending much. (7) IMF report says fiscal and monetary policies providing “The Bridge to Recovery.” (8) Policies have saved the day, but risk causing too much risk-taking. (9) Are markets disconnected from reality? (10) Some industries remain vulnerable to insolvency. (11) Banks are well capitalized for now. (12) China’s vulnerabilities get spotlighted.