Kyle Bass is a smart guy and he’s been watching Japan closely and for a long time. The Hail Mary pass the Bank of Japan just tossed up has bounced in the end zone. Bass says it’s close to game over.
Tag Archives: bonds
US stocks down 200, Is there something “strange” going on in Japanese markets?
Art Cashin the dean of the NYSE floor stopped short of saying that out and out manipulation was happening in Japanese after markets trading.
Bill Gross: “We See Bubbles Everywhere”
The end of this thing is going to be nasty. The bust of the current Fed induced delusion will likely be more impactful for many people alive today than the 2008 Crash or the September 11th 2001 attacks. Bill Gross, probably the biggest bond trader in the world sees storm clouds. Gross says that it may not be as bad as 2008, but I’ll bet that in his heart of heart he thinks things will be worse.
The Guy Who Predicted the Eurozone Crisis 17 Years Ago
Bernard Connolly, former economist for the European Commission and author of the book, The Rotten Heart of Europe: The Dirty War for Europe’s Money, explains that the European Union was doomed from the start. In fact he said so over a decade and a half ago in the book, and was then fired in a very ugly and public way by the Commission for saying it. No one likes the wet blanket I suppose.
The Third Stage of Economic Grief
Bill Fleckenstein explains that the reason the economy doesn’t feel like it’s recovering is because it’s not. The rise in asset prices and bonds is purely a creation of central banks printing with unprecedented abandon. Like the tech bubble and the housing bubble, the current Fed driven asset inflation will end badly. But when it ends this time the scale will be much larger.
World’s Biggest Bond Manager Explains the Dangerous “Credit Supernova” Which Continues to Expand
Bill Gross and his company PIMCO manage more bonds than anyone else in the world. Gross is a smart guy and he explains in simple terms below, why the constant expansion of credit we are currently witness to is so dangerous.
Gross also offers some thought on how best to deal with the credit supernova on an investing level as it cools. Hope you’ve got arable land.
(From PIMCO.com)
There may be a natural evolution to our fractionally reserved credit system which characterizes modern global finance. Much like the universe, which began with a big bang nearly 14 billion years ago, but is expanding so rapidly that scientists predict it will all end in a “big freeze” trillions of years from now, our current monetary system seems to require perpetual expansion to maintain its existence. And too, the advancing entropy in the physical universe may in fact portend a similar decline of “energy” and “heat” within the credit markets. If so, then the legitimate response of creditors, debtors and investors inextricably intertwined within it, should logically be to ask about the economic and investment implications of its ongoing transition.
Why Latvia Now Succeeds and Greece Remains Depressed
In this excellent article by Anders Aslund at Bloomberg.com, he tells the tale of 2 countries. Both of them are small and subject to the cold breezes of the bond markets. Both fell into depression quickly in 2008.
Japan Hurries Down the Rabbit Hole With the US in Hot Pursuit
Cancer Cronyism Deep in the Heart of Texas?
Six years ago, Texas floated a series of bonds to fund cancer research within the Lone Star State. But the program, the Cancer Prevention and Research Institute of Texas (CPRIT), has seen more than its share of controversy. Some are levying accusations of cronyism.
