Authored by Adam Tooze via ProspectMagazine.co.uk,
Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for?
Buy The Fucking Fire And Fury...
Interrestingly the BTFDers arrived right on cue as Europe closed and then got some ignition when NYT ran a story saying Trump's words were his own and not 'policy'... Then again into the close, VIX was smashed lower in a desperate bid to get S&P green...
Dow down for a 2nd straight day!!!!
Authored by Simon Black via SovereignMan.com,
What’s money worth if interest rates are negative?
Interest rates, after all, are the “price” of money.
When we borrow money from a bank and pay interest on the loan, it means that the money we’re borrowing has value. That –capital- has value.
Negative interest rates, on the other hand, suggest that capital is totally worthless.
This isn’t a philosophical exercise. These are the times we’re living in.
One day after DoubleLine chief Jeff Gundlach told Bloomberg TV that it is time for investors to head for the exits as his highest conviction trade is "volatility is about to go up", and that he is reducing his positions in junk bonds, EM debt and other lower-quality investments on fears investor sentiment may roll over (explaining later to CNBC that he expects to make no less than 400% on his S&P puts) today two other money-managing titans - T.Rowe Price and Pimco - both issued similar warnings to investors, urging investors to start taking profits.
Authored by Daniel Lacalle via The Mises Institute,
The Bank of International Settlements (BIS) has warned again of the collateral damages of extremely loose monetary policy. One of the biggest threats is the rise of “zombie companies.” Since the “recovery” started, zombie firms have increased from 7.5% to 10.5%. In Europe, BofA estimates that about 9% of the largest companies could be categorized as “walking dead.”