Take Matt King's September 2015 piece in which he warned that one of the most serious problems facing the world is that we may have hit its debt ceiling beyond which any debt creation is merely pushing on a string leading to slower growth and further deflation. Or his more recent report which explained why despite aggressive easing by the BOJ and ECB, asset prices continue to fall as a result of quantitative tightening by EM reserve managers and China, which are soaking up the same liquidity injected by DM central banks.

Overnight, he put it all together in a simple and elegant way that only Matt King can do in a presentation titled ominously "Don't look down: You might find too many negatives."

In it he first proceeds to lay out how things have dramatically changed in recent months compared to prior years: first, the "appalling" asset returns and the "rising dislocations" between asset prices in recent months and especially in 2016, or a broken market which is not just about Crude (with correlation regimes flipping back and forth), or China (as YTD bank returns in Japan and Switzerland are far worse than those in the China-exposed Eurozone), as appetite for risk has effectively disappeared. Worse, as the Japanese NIRP showed, incremental easing in the form of QE actually triggered ongoing weakness, sending both the Nikkei and the USDJPY plunging, suggesting that central bank grip on markets is almost gone.

King then notes that while spreads are at recessionary levels, yields - courtesy of record low interest rates - are still quite affordable and "in principle there is nothing to worry about", perhaps it is just the market overshooting: he points out several lagging indicators such as employment and loan demand which do not suggest that a recession is imminent and all that needs to happen is to "replace fear with greed."