Seventeen trillion dollars of negative yielding bonds and climbing is not the result of free market capitalism. It is the terminal phase of the global credit bubble.
TSP & Vanguard Smart Investor Posts
The notion that the Federal Reserve would not respond to declining stock prices – under any circumstance – has become heresy. Where was the outrage when Bill Dudley (while at Goldman Sachs) and others specifically called for the Fed to adopt policies to spur mortgage Credit expansion for the purpose of systemic reflation after the collapse of the “tech” Bubble?
And so much for “good friend.” I’ll assume affixing the “enemy” label to Xi Jinping denotes serious trade war escalation. The “We don’t need China and, frankly, would be far better off without them” is frighteningly delusional.
I’ve posted a special report on today’s market events and what they mean to our investment allocations for our members (all levels).
I understand why market professionals, pundits and journalists focus on the conventional “recession risk” explanation for sinking Treasury yields and the inverted curve. For one, there is insufficient awareness as to the deep structural impairments that today permeate global finance.
Don’t be fooled by short-term pops in price due to plunging interest rates. We it comes to fixed income funds, past performance can no longer be achieved again. We are simply accelerating to the point of no returns in the US bond market.
Matt Stoller is trying to wake up America to another crisis already baked into the cake. After reading his article (excerpts below) my view is simple, wall street greed is guilty of treason.
There is ample justification for gold’s runup – experimental activist monetary policy, a world of debt, a historic global securities Bubble, and a troubling geopolitical backdrop.
Playing a dangerous game, the Fed is now moving from accommodating this Bubble to actively stimulating it – from pushing back against a tightening of financial conditions to pushing forward already extraordinarily loose conditions.
It’s always the same: Everyone is happy to ignore bubbles when they’re inflating. Bubble analysis, by its nature, will appear foolish for a while. But bubbles inevitably burst. There is no doubt that China’s historic bubble will burst, and I expect this will prove the catalyst for faltering bubbles across the globe – including here in the U.S.