{"id":11931,"date":"2015-09-06T20:29:39","date_gmt":"2015-09-07T01:29:39","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11931"},"modified":"2015-09-06T20:29:39","modified_gmt":"2015-09-07T01:29:39","slug":"the-unwind","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11931","title":{"rendered":"The Unwind"},"content":{"rendered":"

The Unwind<\/a><\/h3>\n
Too often it\u2019s as if I\u2019m analyzing an altogether different world than conventional analysts. My strong preference is to be viewed as an adept and determined analyst, as opposed to some wacko extremist. I have always tried to distinguish my analysis from the \u201clunatic fringe.\u201d<\/p>\n

It\u2019s my overarching thesis that the world is in the waning days of a historic multi-decade experiment in unfettered finance. As I have posited over the years, international finance has for too long been effectively operating without constraints on either the quantity or the quality of Credit issued. From the perspective of unsound finance on a globalized basis, this period has been unique. History, however, is replete with isolated episodes of booms fueled by bouts of unsound money and Credit – monetary fiascos inevitably ending in disaster. I see discomforting confirmation that the current historic global monetary fiasco\u2019s disaster phase is now unfolding. It is within this context that readers should view recent market instability.<\/p>\n

It\u2019s been 25 years of analyzing U.S. finance and the great U.S. Credit Bubble. When it comes to sustaining the Credit boom, at this point we\u2019ve seen the most extraordinary measures along with about every trick in the book. When the banking system was left severely impaired from late-eighties excess, the Greenspan Fed surreptitiously nurtured non-bank Credit expansion. There was the unprecedented GSE boom, recklessly fomented by explicit and implied Washington backing. We\u2019ve witnessed unprecedented growth in \u201cWall Street finance\u201d – securitizations and sophisticated financial instruments and vehicles. There was the explosion in hedge funds and leveraged speculation. And, of course, there\u2019s the tangled derivatives world that ballooned to an unfathomable hundreds of Trillions. Our central bank has championed it all.<\/p>\n

Importantly, the promotion of \u201cmarket-based\u201d finance dictated a subtle yet profound change in policymaking. A functioning New Age financial structure required that the Federal Reserve backstop the securities markets.<\/p><\/div>\n

\n

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

 <\/p>\n

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

The Unwind Too often it\u2019s as if I\u2019m analyzing an altogether different world than conventional analysts. My strong preference is to be viewed as an adept and determined analyst, as opposed to some wacko extremist. I have always tried to distinguish my analysis from the \u201clunatic fringe.\u201d It\u2019s my overarching thesis that the world is […]<\/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":[124,175,3203,7756,1668,303,305,8767,534],"class_list":["post-11931","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-credit","tag-credit-bubble","tag-credit-bubble-bulletin","tag-derivatives","tag-fed","tag-federal-reserve","tag-international-finance","tag-monetary-policy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11931","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=11931"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11931\/revisions"}],"predecessor-version":[{"id":11932,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11931\/revisions\/11932"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}