LACK OF CONFIDENCE GROWS

We recently wrote about those low rates and the damages they're doing to the COLA-dependent and retirees in general.

 And we noted that bureaucratic monster called the IMF and how their love for negative zero rates and its phony stimulus affect has on the global recovery made no mention of the pain such inflicts on the above. Now, guess what, those money-grubbing, fees-loading big banks are wailing the low-interest rate blues, too.

A WSJ headline,"Banks' Outlook Suffers As Rates Remain Low," tells the story. It turns out financial stocks which as 2016 was starting in what was suppose to be a good time isn't. Hello, Jamie Dimon. Toss in the recently released "Panama Papers" and you have some idea why this year's U.S. presidential election is going to be a most entertaining one. Standup comics, as we've said before, pay attention. There's going to be some hot material here. And for free.

It is also why--though MSM and its minions will never admit it--Trump-traction and the Vermont Socialist are climbing in the races. According to reports, Bernie spent his honeymoon in the old Soviet Union. That's seems like an important qualification for occupying the White Shack.

Bottom line, banks are apparently victims of bureaucratic unintended consequences. First quarter earnings on the big boys start this week. Key is net interest margins, since trading profits are nil or worse owing to regulatory fears and wrist-slapping. Where utilities were the surprised leaders in the first three months, banks have been the market's laggers. Both are interest rates sensitive, but for different reasons.

Banks are suppose to be"fundamental" to the economy. The same can be said for utilities.This is all the more reason to suspect the recent so-called positive data Yellen and her crew celebrated about the U.S. recovery and used it to hold back on raising rates. There are other clouds also hanging over the industry.

European banks and their known troubles are one thing, but markets are now leery of those unknown things owing to the lack of forthrightness afoot today seemingly everywhere. A recent example is those secret IMF documents that were leaked about Greece. There is a danger here and it's a big one.

If this whole bureaucratic-driven financial ball of wax comes unglued, you can bet you won't find any of these over-compensated, benighted bureaucrats pounding their chests for recognition in public after it goes down. By now most probably have those lucrative speaking fees buried somewhere other than Panama. Probably in gold.

A lack of confidence is their worst nightmare. If you think not, just turn your gaze east toward China.