Home » Posts tagged 'jeff gundlach'
Tag Archives: jeff gundlach
Unprecedented Mainstream Media Criticism of Central Banking Bodes Ill for the Larger Economy
DoubleLine’s Gundlach says ‘central banks are losing control’ … Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Tuesday investors are dropping risky assets and turning to safer securities including Treasuries and gold because they are losing faith in central banks. –Reuters
There is definitely considerable negativity about central banking in the mainstream media these days.
This is surprising, on the one hand, because central banking provides the foundation of the current economic system, worldwide.
On the other hand, such negativity may be signaling far worse.
Our theory, for years has been that the central banking system is presented as something that is economically positive when, in fact, it is quite negative and responsible for the gradual collapse of Western prosperity.
The mainstream media makes no real reference to the state of the West – or the world – when it comes to the larger economy.
China is collapsing. The European Union is half-bankrupt. The US is in a kind of depression.
But until recently the system that has created this mayhem has been treated as a kind of eternal or natural constant, like the sky or the moon or the sun.
Now however, with half the West running on negative interest rates, the cracks cannot be papered over.
The recent Bilderberg meetings apparently focused in large part on the economy.
Disaster was predicted and preparations were made.
In fact, this is how economies and economic systems “evolve.”
Out of “chaos,” order.
And to ensure that the responsibility for the chaos is not blamed on the bankers who run the central banking system behind the scenes, the central banking system itself is beginning to be blamed.
This is quite unusual. In past times, investment banking was blamed. Wall Street was blamed. Commercial banks were blamed. Now central banks are blamed.
…click on the above link to read the rest of the article…
Jeff Gundlach: “Things Are Going To Get Pretty Scary”
Jeff Gundlach: “Things Are Going To Get Pretty Scary”
Specifically, he said that central banks are “out of control” because they don’t understand the consequences of their own policies. On CNBC’s “Halftime Report“, the DoubleLine bond guru projected that markets are likely to see another round of negative interest rates before central bankers realize they aren’t working and that fiscal stimulus may be the better option. “The policies that they’re implementing don’t have the consequences that they’re looking for,” he said.
Gundlach pointed out the chart which we said back in 2010 is the only one that matters: the S&P’s liquidity “flow” manifested by the Fed’s balance sheet overlaid on top of the Fed’s balance sheet:
He said that “it’s really uncanny how the S&P500 rallied when they were doing QE and expanding their balance sheet, and how the S&P never goes anywhere when they stopped expanding their balance sheet. They stopped QE3 back in December of 2014 and the S&P500, the DJIA, the Nasdaq are all exactly the same when they stopped expanding their balance sheet. The S&P has been dead money for 18 months.”
That – once again – resolves the whole “flow vs stock” debate.
So what went wrong? According to Gundlach, chief among central bank mistakes was negative rates.
…click on the above link to read the rest of the article…
Oil fall could lead to capex collapse: DoubleLine’s Gundlach
Oil fall could lead to capex collapse: DoubleLine’s Gundlach
(Reuters) – DoubleLine Capital’s Jeffrey Gundlach said on Tuesday there is a possibility of a “true collapse” in U.S. capital expenditures and hiring if the price of oil stays at its current level.
Gundlach, who correctly predicted government bond yields would plunge in 2014, said on his annual outlook webcast that 35 percent of Standard & Poor’s capital expenditures comes from the energy sector and if oil remains around the $45-plus level or drops further, growth in capital expenditures could likely “fall to zero.”
Gundlach, the co-founder of Los Angeles-based DoubleLine, which oversees $64 billion in assets, noted that “all of the job growth in the (economic) recovery can be attributed to the shale renaissance.” He added that if low oil prices remain, the U.S. could see a wave of bankruptcies from some leveraged energy companies.
Brent crude LCOc1 approached a near six-year low on Tuesday as the United Arab Emirates defended OPEC’s decision not to cut output and traders wondered when a six-month price rout might end.
…click on the above link to read the rest of the article…
