{"id":9413,"date":"2015-06-25T05:47:51","date_gmt":"2015-06-25T10:47:51","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9413"},"modified":"2015-06-25T05:47:51","modified_gmt":"2015-06-25T10:47:51","slug":"the-liquidity-crisis-intensifies-prepare-for-a-bear-market-in-bonds","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9413","title":{"rendered":"The Liquidity Crisis Intensifies: \u2018Prepare For A Bear Market In Bonds\u2019"},"content":{"rendered":"

The Liquidity Crisis Intensifies: \u2018Prepare For A Bear Market In Bonds\u2019<\/a><\/h3>\n

\"Bear<\/a>Are we about to witness trillions of dollars of \u201cpaper wealth\u201d vaporize into thin air?\u00a0 During the next financial crisis, a lot of \u201cwealthy\u201d investors are going to be in for a very rude awakening.\u00a0 The truth is that securities are only worth what someone else is willing to pay for them, and that is why liquidity is so important.\u00a0 Back on April 17th, I published an article entitled \u201cThe Global Liquidity Squeeze Has Begun<\/a>\u201c, but it didn\u2019t get nearly as much attention as many of my other articles do.\u00a0 But now that the liquidity crisis is intensifying, hopefully people will start to grasp the implications of what is happening.\u00a0 The\u00a076 trillion dollar global bond bubble<\/a>\u00a0is threatening to implode, and if it does, the amount of \u201cpaper wealth\u201d that could potentially be lost during the months ahead is almost unimaginable.<\/p>\n

For those that do not consider the emerging liquidity crisis to be important, I would suggest that they check out what the financial experts are saying.\u00a0 For instance, the following comes from a recent\u00a0Bloomberg report<\/a>\u2026<\/p>\n

There are three things that matter in the bond market these days: liquidity, liquidity and liquidity<\/strong>.<\/p>\n

How \u2014 or whether \u2014 investors can trade without having prices move against them has become a major worry as bonds globally tanked in the past few months. As a result, liquidity, or the lack of it, is skewing markets in new and surprising ways.<\/p><\/blockquote>\n

Things have already gotten so bad that\u00a0Zero Hedge<\/a>\u00a0says that some fund managers \u201care starting to panic\u201d about the lack of liquidity in the marketplace\u2026<\/p>\n

Fund managers who together control trillions in assets are starting to panic in the face of\u00a0an acute bond market liquidity shortage<\/strong>.<\/p><\/blockquote>\n

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

The Liquidity Crisis Intensifies: \u2018Prepare For A Bear Market In Bonds\u2019 Are we about to witness trillions of dollars of \u201cpaper wealth\u201d vaporize into thin air?\u00a0 During the next financial crisis, a lot of \u201cwealthy\u201d investors are going to be in for a very rude awakening.\u00a0 The truth is that securities are only worth what […]<\/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":[1750,1719,86,5185,88,181,6061,312,6065,487,6697,6698,6699,6700,5846,6701],"class_list":["post-9413","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bear-market","tag-bond","tag-bond-bubble","tag-bond-market","tag-bonds","tag-crisis","tag-financial","tag-financial-crisis","tag-investors","tag-liquidity","tag-liquidity-crisis","tag-liquidity-shock","tag-paper-wealth","tag-securities","tag-wealthy","tag-wealthy-investors"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9413","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=9413"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9413\/revisions"}],"predecessor-version":[{"id":9414,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9413\/revisions\/9414"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}