Authored by John Mauldin via MauldinEconomics.com,
This is something I’ve been pondering for some time. I think the next crisis will reveal how little liquidity there is in the credit markets, especially in the high-yield, lower-rated space.
Dodd–Frank has greatly limited the ability of banks to provide market-making opportunities and credit markets, a function that has been in their wheelhouse for well over a century.
The following article by David Haggith was published on The Great Recession Blog:
The global risk levitation continues, sending Asian stocks just shy of records, to the highest since November 2007 and Japan's Nikkei topped 22,750 - a level last seen in 1992 - while European shares and US equity futures were mixed, and the dollar rose across the board, gains accelerating through the European session with EURUSD sumping below 1.16 shortly German industrial output shrank more than forecast, eventually dropping to the lowest point since last month’s ECB meeting.
The German military is preparing for a number of scenarios over the next two decades ranging from "the disintegration of the EU" to "multipolar competition" and the unraveling of Western order.
Authored by Giulio Meoti via The Gatestone Institute,