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Tag Archives: bonds
The Elephant Cometh
The Elephant Cometh The elephant’s not even in the room, which is why the 2016 election campaign is such a soap opera. The elephant outside the room is named Discontinuity. That’s perhaps an intimidating word, but it is exactly what the USA is in for. It means that a lot of familiar things come to an […]
German bank that almost failed now being paid to borrow money
German bank that almost failed now being paid to borrow money The 12.5 hours spent crossing the Pacific on Qantas flight 27 feels like going through a wormhole. The flight departs Sydney, Australia at 12:50pm and arrives to Santiago, Chile the same day at 11:20am. In other words, the plane lands 90 minutes before it […]
Playing Around With Prices Is a Bad Idea
Playing Around With Prices Is a Bad Idea Call me old fashioned, but I still think prices matter. I vividly recall the first time I studied those simple supply-and-demand graphs as a college freshman, and today, far too many years later, their basic logic remains undeniable. When prices are right, money flows to the most […]
The Deflation Monster Has Arrived
Lukiyanova Natalia / frenta/Shutterstock The Deflation Monster Has Arrived And it sure looks angry As we’ve been warning for quite a while (too long for my taste): the world’s grand experiment with debt has come to an end. And it’s now unraveling. Just in the two weeks since the start of 2016, the US equity markets are […]
David Collum: The Next Recession Will Be A Barn-Burner
David Collum: The Next Recession Will Be A Barn-Burner With very few places for capital to hide For those who enjoyed his encyclopedic 2015: Year In Review, this week we spend an hour with David Collum to ask: After processing through all of that information, what do you think the future is most likely to bring? Perhaps it […]
The Confidence Game Is Ending
The Confidence Game Is Ending Immediately after the Fed hiked interest rates last Wednesday – after sitting at 0% for 7 years – markets acted pretty much as one might expect. The Fed tightens monetary policy when the economy is strong so rising stock prices, rising interest rates and a strong dollar are all things […]
Japan still leads the way towards our endgame
Japan still leads the way towards our endgame Successful investors live by a golden rule: what the mainstream financial media talks about is not important. They focus on what they don’t hear instead. So forget about Yellen for a second. Let go of Draghi, oil, the South African rand and Syria. That’s all in the now. But investing […]
ECB & The Failed QE Stimulus
ECB & The Failed QE Stimulus The central banks are simply trapped. They have bought in bonds under the theory that this will stimulate the economy by injecting cash. But there are several problems with this entire concept. This is an elitist view to say the least for the money injected does not stimulate the […]
Puerto Rico Faces “Public Unrest” As Cash Crunch May Leave Government Workers Unpaid
Puerto Rico Faces “Public Unrest” As Cash Crunch May Leave Government Workers Unpaid Heavily indebted Puerto Rico was due to meet with representatives of its creditors on Friday in a desperate attempt to forge ahead with a plan to restructure some $72 billion in debt. No offer is expected to be made at the meetings […]
How Do People Destroy Their Capital?
How Do People Destroy Their Capital? I have written previously about the interest rate, which is falling under the planning of the Federal Reserve. The flip side of falling interest rates is the rising price of bonds. Bonds are in an endless, ferocious bull market. Why do I call it ferocious? Perhaps voracious is a better word, […]
The Bond Crisis & 2015.75
The Bond Crisis & 2015.75 Some people have wrongly expected a crash in the long bonds. What has actually happened is that China and others have sold into the high, liquidating their long bonds, and moving short-term. This is why rates are negative on the short-end. The CRASH comes in the opposite direction this time. […]
Where Is the First Helicopter Drop of Money Likely to Land?
Where Is the First Helicopter Drop of Money Likely to Land? So what’s left in the toolbag of central banks and states to stimulate recessionary economies if QE has been discredited? The answer: Helicopter Money. We all know helicopter money of some kind is coming as the global economy spirals into recession. Quantitative Easing (QE)–the monetary stimulus of […]
Is Quantitative Easing the Same as Printing Money?
Is Quantitative Easing the Same as Printing Money? QUESTION: Mr. Armstrong; Thank you for coming to Athens. After the presentation, there were so many questions that the moderator did not have time for. You answered some for the crowd afterwards that I had never heard anyone ever explain. You said Quantitative Easing was not money printing […]
This is When Bonds Go Kaboom!
This is When Bonds Go Kaboom! The toxic miasma of “distressed debt.” It’s getting tougher out there for our QE and ZIRP-coddled corporate junk-bond heroes. Unisys, whose revenues and profits decline year after year and whose stock dropped from over $400 a share during the prior tech bubble to $13 a share now, withdrew its […]
