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Tag Archives: bonds

2008 Was a Crisis… It Was Not THE Crisis

Think of 2008 as a primer. A very difficult and disruptive primer. Nothing’s “fixed.” Markets never really cleared.

Additionally, as is explained below, the now 0% interest rates are almost locked there as the cost of serving US debt by the US government would explode upward with increased (and very likely closer to real market level) rates. That’s a sticky place to be to say the least.

But people will continue blissfully along, until they can’t. Then they’ll scream that “capitalism” messed everything up. Watch.

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Dow 5,000? Yes, it could happen

Here’s a good dose of gloom for you. The author is not saying it will happen, but he is arguing that Dow 5000 is not completely crazy. Frankly I’d be for it. If we could carve out all of the central bank fluff created post-2008 and returned to a real live market such a crash would be worth it. (It might not be so great for all those baby boomers who have ridden the Fed induced rally right before retirement however.)

I wouldn’t say that a crash on this scale or a re-institution of real, at least close to honest pricing in equities is likely. But I would say the both are possible. (OK, perhaps one is possible.)

In the meantime go cook a steak on the grill. It’s supposed to be nice weather in most of the USA this weekend. Monday can wait.

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(Watch out below!!!) Good Luck Finding a Place to Hide as Global Markets Crumble

We are beginning to see the Great Experiment, the post 2008 Crash experiment, disintegrate. A crack here. A crack there. A hairline fracture. A fissure. The underpinnings of printed money have always been unsound, but now the edifice appears to be unstable. Will a hard Greek gale bring the thing down, or will winds from somewhere else finally do this fiat superstructure in?

Guess we’ll find out soon enough.

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Ron Paul: Stock market ‘day of reckoning’ is near (VIDEO)

Ron Paul calls out the Plunge Protection Team on CNBC. I don’t think I’ve ever heard it mentioned on financial television. Seriously anyway.

And boy is he right. There is an assumption that the Fed will never let stocks (and other assets) revert to real levels.

The thing is the Fed for all its power is still subject to the laws of thermodynamics, just like the rest of us. That is, even the mighty central bank will feel the sting of its hubris.

Of course so will the rest of the planet. Which let me tell you is a real bummer.

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Negative interest rates put world on course for biggest mass default in history

Call it the new abnormal.

Since 2008 the world has been turned upside down. In our collective panic we have disrupted whatever used to pass for economic homeostasis. Now the globe is moving (moved) toward a negative interest rate environment for government bonds.

Please, take my money. I’ll pay you to take my money! Why am I paying a government to hold my money? Well, because the economy is so healthy of course.

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