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Takeaway: The central planning #BeliefSystem is breaking down.

Following the worst U.S. stock market decline to start a year (ever), manic market myopia has set in among investors overweight advice of domestic permabull storytellers. They're missing criticial context in addition to a significant risk developing with respect to wavering faith in the global central bankers. 

Wavering Fed Faith: Will U.S. Follow (Crashing) Japan & Europe? - Central banker cartoon 03.03.2015

For the record, outside the recent Fed-stoked rally in U.S. equities, European and Asian markets remain deeply troubled as the central planning #BeliefSystem (in the ECB and BOJ) continues to break down.

Here's Asian market analysis via Hedgeye CEO Keith McCullough in a note sent to subscribers this morning: 

 

"The yen up small +0.2% vs USD was enough to keep the Nikkei from bouncing overnight; Nikkei 225 closed down another -0.3% taking its crash from the July 2015 high to -22.8% and -15.4% YTD (China and Hong Kong closed today)"

Wavering Fed Faith: Will U.S. Follow (Crashing) Japan & Europe? - nikkei 52 wk

Looking at Europe...

"Post a dreadful producer price report of -4.2% y/y for the Eurozone this am the ECB’s Praet is saying they’ll “continue to act forcefully” (to try to tone down Euro Up vs Yellen’s Dollar Down move) so let’s see how European stocks react to this as they were down (again) last week with Italy’s MIB Index -2.1% w/w to -17.0% YTD."

 

Wavering Fed Faith: Will U.S. Follow (Crashing) Japan & Europe? - european equities

So ... what happens when the Fed (like its central-planning brethren abroad) loses all macro market credibility and the U.S. economy continues to deteriorate? If Europe and Japan are any indication, the outlook isn't good.

more to be revealed.