Submitted by Hugo Salinas Price via Plata.com.mx,
The current melt-down of the world's debt bubble is likely to continue in the course of the next months. The secular trend to expansion of credit has morphed into contraction and liquidation. It is my opinion that the new trend is now established and no action by any of the Central Banks (CB) that issue reserve currencies will do anything at all to reverse that trend.
Well, don’t say we didn’t warn you.
Just yesterday, in the course of documenting the largest ponzi scheme the world has ever known (in terms of number of victims), we remarked that if China’s beleaguered masses needed yet another excuse to rise up and stage massive street protests, they got one in the form of online P2P lender Ezubao, which defrauded nearly a million people.
Submitted by Daniel Bier via The Foundation for Economic Education,
Willie Sutton was one of the most infamous bank robbers in American history. Over three decades, the dashing criminal robbed a hundred banks, escaped three prisons, and made off with millions. Today, he is best known for Sutton’s Law: Asked by a reporter why he robbed banks, Sutton allegedly quipped, “Because that’s where the money is.”
US monetary conditions are the tightest since 2009, financial conditions the tightest since 2009, and as Moody's reports today Liquidity Stress is at its worst since February 2010 - all forewarning of a notable rise in defaults in 2016... and what can the Fed do?
Worryingly, as Credit Suisse explains, US monetary conditions are now the tightest that they have been since 2009...
In mid-January, just as the market was crashing due to among other things concerns that the economy was prolapsing, we had a brief exchange with the Atlanta Fed asking them why they waited until the after the close of trading to report that its Q1 GDP estimate had crashed to the lowest yet, at 0.6% (incidentally almost exactly what the final Q1 GDP print was), a number that is traditionally revealed at or before noon. The Fed's answer: "Apologies for the late-day data release. Nothing more nefarious than technical difficulties, which we believe have been resolved."