Authored by He Huifeng via The South China Morning Post,
In an inglorious echo of 2007 America, many young homeowners in booming cities owe more than they earn, and some even falsify salary details to get bigger mortgages...
On the heels of San Franciso Fed Governor John Williams' warning that The Fed "doesn't want there to be excesses in financial markets... " Janet Yellen has reiterated her concerns that markets are a bit toppy...
As is his way, Billionaire investor Warren Buffett calmed an anxious nation earlier this month with his comments that:
"Valuations make sense with interest rates where they are."
And it seemed to work as stocks hit new record highs and Americans have never, ever been more sure that stocks will continue rising for the next 12 months...
Why wouldn't they - Buffett knows all, right?
While we will have much more to share from the latest weekend letter by One River's Eric Peters shortly, we found the following section on inflation vs asset bubbles - a topic which BofA's Michael Hartnett has been focusing extensively on in the past year and which serves as the basis for the "Icarus Rally" - particularly notable as it explains all of today's comments from Janet Yellen and other central bankers, discussing why it is only a matter of time before inflation returns, as the alternative, as Peters' explains, is a world in which yields simply refuse to go up, leading to a nightma
Having been responsible for the biggest flash crashes in recent years, it is no surprise that when it comes to the market's growing structural vulnerabilities, high frequency traders have emerged as the primary authority on how to crash the market in the blink of an eye. Which is perhaps why none other than the Pentagon is seeking advice from HFTs on how hackers could "unleash chaos" in the US financial system.