Short-term Treasuries remain a safe investment. The TLT ETF mentioned by Doug has a long duration and its price moves 2% for each 0.1% move in interest rates. Interest rates popped a little this week sending bond prices down. And yes, inflation worries could be part of it.
Without the restoration of the Glass-Steagall Act, Wall Street’s wealth transfer system, that plunders the 99 percent in service to the 1 percent, will continue humming along.
It is a central tenet of Bubble Analysis that “things get crazy at the end of cycles.”
Why did the Fed do that? Because the largest deposit-taking banks in America are now also the largest trading houses, thanks to the repeal of the Glass-Steagall Act in 1999…
In case you have not heard, there are about 5 companies in America driving the markets. They now make up 28% of the SP500 index (TSP C fund)…
…the safe havens signal a major crisis is unavoidable. This is not your granddad’s Economic Structure. And to hear the Federal Reserve still focused on below target inflation is a farce.
So you might ask why the economy is off-subject for an investing service. That would be because the economy has not mattered to the markets since the Great Recession. And when it does, bad news usually propels the market higher on hopes of more financial stimulus – the real driver.
I seriously doubt China’s banking system inflates from $8 TN to $43 TN during this cycle without Trillions of “Bubble Dollars” flooding the world and its resulting reserves horde. U.S. crisis and QE1 provided China a blank check for a massive $600 billion 2009 stimulus plan. And Chinese Credit – along with investment, manufacturing, apartment Bubble, economic boom, technological advancement, military buildup, global influence peddling, and ambitions for superpower status – never looked back.
I’m getting sick of this. They can get away with it because few understand what is going on and there are so many distractions. From wealth transfer to wealth preservation for the few while the many fall back, again. Excerpt… Read More ›
Citadel was front running half of the Robinhood order flow and just got a slap on the wrist from regulators who will probably work for Citadel or another like firm soon.