Doug Noland: Scorched Earth
Covid bestowed end-of-cycle excess a hardy additional lease on life.
Recent Posts
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Smart Bird: Not a Scientist but…
Meaning even if Americans were to take this seriously today, the US daily death rate will STILL probably exceed 3,000 daily in weeks.
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TSP Funds: The Current Situation
The bottom line: It sucks.
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Doug Noland: Well, That’s Some Weird… Stuff
At this point, markets are scary dysfunctional. Melt-ups lay the groundwork for breakdowns. And the longer markets disregard reality, the more destabilizing the eventual reckoning. There’s a major economic crisis shoe to drop when market Bubbles succumb.
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TSP Smart: Hope for the Take Down of Wall Street
“And we can reorient our economy from wealth to work. To do all of that, we have to take on Wall Street power.
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Doug Noland: Critical Juncture
But if an adverse outcome didn’t materialize, the unwind of hedges could spur markets higher while stoking speculative excess.
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Doug Noland: Very Dangerous
And don’t get me going on the Federal Reserve’s buying Apple’s corporate bonds when credit card rates are 17%.
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Doug Noland: The New Massive
We’re drifting ever deeper into dangerous territory. The economy sopped up last year’s $3.1 TN federal deficit like water into a dry sponge. The conventional narrative holds that the pre-COVID economy was robust and healthy. It was neither.
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Doug Noland’s: Moral Hazard Pinnacle (infinite money printing announced)
At an event sponsored by the Institute of International Finance, Randal Quarles offered an admission: “It may be that there is a simple macro fact that the Treasury market, being so much larger than it was even a few years ago, much larger than it was a decade ago, and now really much larger than it was even a few years ago, that the sheer volume there may have outpaced the ability of the private-market infrastructure to kind of support stress of any sort there. …Will there be some indefinite need for the Fed to provide — not as a way of supporting the issuance of Treasuries, but as a way of supporting a functioning market in Treasuries — to participate as a purchaser for some period of time.”
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Smart Bird: An Historian on “Originalism”
I’ve spent the last years learning about the concentration of wealth in America and how this has come about from an economic perspective. I seem to be stumbling into the other side of the coin… how the concentration of power is being designed into our system. I’m not liking it. It seems very dangerous.