{"id":7428,"date":"2015-04-20T05:36:05","date_gmt":"2015-04-20T10:36:05","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7428"},"modified":"2015-04-20T05:36:05","modified_gmt":"2015-04-20T10:36:05","slug":"steen-jakobsen-get-ready-for-the-biggest-margin-call-in-history","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7428","title":{"rendered":"Steen Jakobsen: Get Ready For The Biggest Margin Call In History"},"content":{"rendered":"

Steen Jakobsen: Get Ready For The Biggest Margin Call In History<\/a><\/h3>\n
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A recommendation to move to cash<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Economist Steen Jakobsen, Chief Investment Officer of Saxo Bank, believes 2015 will be another “lost year” for the economy. And he predicts the Federal Reserve will indeed start to raise rates later this year, surprising the market and taking the wind of out asset prices.<\/p>\n

He recommends building cash and waiting to see how the coming storm — which he calls the “greatest margin call in history” — plays out:<\/p>\n

0% interest rates at $0 down has not created the additional momentum to the economy The Fed was hoping for. The trickle down effect, the wealth effect, has instead made for bigger inequality in society. So I think\u00a0we\u2019re set for a rate hike in either in June or in September. I think this will be the biggest margin call in history\u00a0<\/strong>on the asset inflation created by the Fed .<\/p>\n

That\u2019s where I differ from most Fed watchers. Everyone else is looking at employment, inflation targeting. I don\u2019t think Fed is at all looking at those. They are saying \u201cListen, the 0% interest rate is getting us absolutely nowhere, we think it\u2019s very, very important for us to move to a more neutral place\u201d. At the same time we will communicate that we are open-minded to additional programs or whatever needs to be done to secure the long term growth of the economy. But that will be on the down side, not on the up side. And as year has progressed, and I\u2019ve said this publicly, I think\u00a02015 is already lost in terms of recovery here.<\/strong>\u00a0And that will take the market by surprise.<\/strong><\/p>\n

The market will ask in September when the Fed hikes: \u201cWhy are you hiking interest rate when growth is below target, inflation below target\u201d? Well, the Fed’s response will be \u201cBecause\u00a0this is the biggest asset inflation we\u2019ve seen in human history\u00a0<\/strong>and we need to address it\u201d.<\/p>\n

…..<\/p><\/blockquote>\n

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…click on the above link to read the rest of the article and\/or listen to the podcast…<\/p>\n","protected":false},"excerpt":{"rendered":"

Steen Jakobsen: Get Ready For The Biggest Margin Call In History A recommendation to move to cash Economist Steen Jakobsen, Chief Investment Officer of Saxo Bank, believes 2015 will be another “lost year” for the economy. And he predicts the Federal Reserve will indeed start to raise rates later this year, surprising the market and […]<\/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":[1035,260,303,305,431,4026,703,748],"class_list":["post-7428","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cash","tag-employment","tag-fed","tag-federal-reserve","tag-interest-rates","tag-margin-call","tag-saxo-bank","tag-steen-jakobsen"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7428","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=7428"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7428\/revisions"}],"predecessor-version":[{"id":7429,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7428\/revisions\/7429"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}