{"id":11541,"date":"2015-08-28T07:26:31","date_gmt":"2015-08-28T12:26:31","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11541"},"modified":"2015-08-28T07:26:31","modified_gmt":"2015-08-28T12:26:31","slug":"the-most-astounding-credit-binge-in-history","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11541","title":{"rendered":"\u201cThe Most Astounding Credit Binge in History\u201d"},"content":{"rendered":"

\u201cThe Most Astounding Credit Binge in History\u201d<\/a><\/h3>\n

But is the bounce to be trusted?<\/strong><\/p>\n

<\/i><\/b>\u201cThe Donald\u201d breathed a sigh of relief. He and other rich people got a break from the beating they\u2019ve been taking: Stocks bounced, with the Dow ending yesterday\u2019s session up more than 600 points.<\/p>\n

But is the bounce to be trusted? And are there better, more tangible, alternatives to investing in stocks? We\u2019ll try to answer both questions in today\u2019s update\u2026 We\u2019ll also respond to a reader\u2019s feedback on Mr. Trump in today\u2019s Mailbag.<\/p>\n

Stripped Gears<\/strong><\/h3>\n

Yesterday\u2019s bump confirms the mainstream view: There is nothing to worry about. The recent sell-off is just a case of nerves, not a sign of an epizootic. Here is U.S. Trust, a private bank for the ultra-wealthy, reassuring its customers:<\/p>\n

The action in the past few days has been based on fears that we will revisit the market environment from 1997 to 1998, in which the Asian currency crisis led to a sizable correction in world equity markets. A second breakdown in energy, a continued fall to record\u2010low prices in many commodities, and a deep drop in emerging market currencies and equities are sparking fears that a global growth recession is coming our way. And add to that the fact that investors are worried that the Federal Reserve may tighten into a large-scale slowdown is increasing the flight to safety.<\/p><\/blockquote>\n

U.S. Trust, like Donald Trump and much of the media, blames the Chinese for the recent sell-off. Emerging market economies are slowing, they say, as the U.S. and developed economies are moving into \u201chigher gear.\u201d<\/p>\n

Higher gear? As near as we can determine, the gears have been stripped.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cThe Most Astounding Credit Binge in History\u201d But is the bounce to be trusted? \u201cThe Donald\u201d breathed a sigh of relief. He and other rich people got a break from the beating they\u2019ve been taking: Stocks bounced, with the Dow ending yesterday\u2019s session up more than 600 points. But is the bounce to be trusted? […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8084,8500,6190,6941,175,2903,8499,500,1138,4255],"class_list":["post-11541","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asian-currency-crisis","tag-asian-stocks","tag-bill-bonner","tag-chinese-stock-market","tag-credit","tag-credit-binge","tag-market-bounce","tag-market-collapse","tag-stock-market","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11541"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11541\/revisions"}],"predecessor-version":[{"id":11542,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11541\/revisions\/11542"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}