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Fourth Turning Accelerating Towards Climax
FOURTH TURNING ACCELERATING TOWARDS CLIMAX “At some point, America’s short-term Crisis psychology will catch up to the long-term post-Unraveling fundamentals. This might result in a Great Devaluation, a severe drop in the market price of most financial and real assets. This devaluation could be a short but horrific panic, a free-falling price in a market […]
Free Markets Are Dead: Fed To Start Buying Junk Bonds, High Yield ETFs
Free Markets Are Dead: Fed To Start Buying Junk Bonds, High Yield ETFs Back on March 23, when the Fed unveiled it would start buying investment grade corporate bonds, we said “now that the Fed is effectively all in, it will buy stocks and junk bonds next.” Two weeks later, we were right and this morning the Fed […]
Are The Rating Agencies Complicit In Another Massive Scandal: A WSJ Investigation Leads To Shocking Questions
Are The Rating Agencies Complicit In Another Massive Scandal: A WSJ Investigation Leads To Shocking Questions Over the past two years, a key event many bears have cited as a potential catalyst for the next market crash, is the systematic downgrade of billions of lowest-rated investment grade bonds to junk as a result of debt leverage creeping […]
$1.6 Trillion Fund Spots A New, Ticking Time Bomb In The Market
$1.6 Trillion Fund Spots A New, Ticking Time Bomb In The Market First it was the shocking junk bond fiasco at Third Avenue which led to a premature end for the asset manager, then the three largest UK property funds suddenly froze over $12 billion in assets in the aftermath of the Brexit vote; two years later the Swiss […]
New Canadian Bonds Are Backed By Junk Rated Retailers And Consumer Loans Charging 40% Interest
New Canadian Bonds Are Backed By Junk Rated Retailers And Consumer Loans Charging 40% Interest In a unique twist on the excesses of the last credit bubble, Canada’s bond market is now issuing bonds backed by increasingly riskier assets, but that hasn’t stopped investors from jumping at the chance to buy them – because why would […]
Could GE’s Slow Collapse Ignite A Financial Crisis?
Could GE’s Slow Collapse Ignite A Financial Crisis? Will GE be the proverbial “black swan?” – It had come to my attention that General Electric was locked out of the commercial paper market three weeks ago after Moody’s downgraded GE’s short term credit rating to a ratings level (P-2) that prevents prime money market funds […]
Debt is back but this time its corporate
Debt is back but this time its corporate On Wednesday Feb 7th 2007 HSBC issued a profit warning. It was the first in its 142 year history. The bank told its share holders it would have to take an unprecedented charge of $10.5 billion because one of its units, its sub prime lender, was in […]
Is The Long-Anticipated Crash Now Upon Us?
Shutterstock Is The Long-Anticipated Crash Now Upon Us? Is this the market’s breaking point? I admit: I’m a permabear. This is no surprise to those who know and have followed me over the years. But I’m publicly proclaiming my ‘bearishness’ because doing so might open up a needed and long overdue dialog. Here’s my fundamental […]
An Eye on M1, Cyclicals, and Junk Bonds: What Matters?
An Eye on M1, Cyclicals, and Junk Bonds: What Matters? Rosenberg says “Keep an eye on M1”, others watch Cyclicals, and still others have an eye on junk bonds. An Eye on M1 View image on Twitter All of the monetary aggregates have slowed substantially, and real M1 growth is flagging a 1% stall-speed growth economy […]
NIRP Did It: I’m in Awe of How Central-Bank Policies Blind Investors to Risks
NIRP Did It: I’m in Awe of How Central-Bank Policies Blind Investors to Risks “Reverse-Yankee” Junk Bond Issuance Hits Record. It’s paradise for US companies looking for cheap money. They range from sparkly investment-grade companies, such as Apple with its pristine balance sheet, to “junk” rated companies, such as Netflix with its cash-burn machine. They […]
Why Is The Mainstream Media Suddenly Buzzing About “Another Global Financial Crisis”?
Why Is The Mainstream Media Suddenly Buzzing About “Another Global Financial Crisis”? All of a sudden, the mainstream media is starting to sound a lot like The Economic Collapse Blog. Throughout the Obama years, the mainstream media in the United States always seemed extremely hesitant to suggest that difficult economic times may be ahead, but […]
Mind the Junk—-This Ain’t Your Grandfather’s Capitalism
Mind the Junk—-This Ain’t Your Grandfather’s Capitalism The financial system is loaded with anomalies, deformations and mispricings—-outcomes which would never occur on an honest free market. For example, the junk bond yield at just 2% in Europe is now below that of the “risk-free” US treasury bond owing solely to the depredations of the ECB. Indeed, madman Draghi has […]
World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought?
World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought? In regards to ECB QE bond purchases, inquiring minds may be asking: What hath ECB president Mario Draghi wrought? I can explain in one picture. The answer in words: The world’s biggest junk bond bubble. I prefer gold. On August 4, I commented on […]
Cracks in Ponzi-Finance Land
Cracks in Ponzi-Finance Land Retail Debt Debacles The retail sector has replaced the oil sector in a sense, and not in a good way. It is the sector that is most likely to see a large surge in bankruptcies this year. Junk bonds issued by retailers are performing dismally, and within the group the bonds […]
