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Old 12-20-2018, 05:49 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,895
Panic out of stocks and, into bonds

Well, Powell did it. He hiked the interest rate. The fallout will be pretty bad.
The article mentions that the GDP is up.....consumption spending plus investment spending plus government spending equal gdp. GOV just hiked military spending to $750 billion. Presto,,, the GDP goes up. It also mentioned that unemployment is at 3.7%. The 92.6 million of working age who are not in the labor force have NO effect on the economy.

12/20 Too late to matter: Fed-sponsored economic bust coming no matter what – TM
12/20 Hedge fund armageddon – Capitalist Exploits
12/20 Why everything that needs to be fixed remains permanently broken – CHS
12/20 Big funds begin liquidating as panic grips the loan market – Zero Hedge
12/19 Fed hikes rate, lowers 2019 projection to 2 increases – CNBC

Yeah right,,, 2 more increases and every lemonade stand in the country will shut down.

12/18 Wall Street turns apocalyptic on “biggest ever rotation into bonds” – Zero Hedge
RIGHT, run to bonds.
"as I’ve been warning for months. CLOs, or collateralized loan obligations, are a Wall Street product stuffed with corporate loans. If that sounds familiar to you, there’s a reason. Wall Street is doing exactly what they did with mortgage loans before the 2008 financial crisis, but with corporate ones."
"Companies are holding $9.1 trillion of debt now in contrast to the $4.9 trillion in 2007 before the last financial crisis. The financial system, and those who take money from banks, are more highly levered than they were prior to the last financial crisis.'

12/19 “Jarring” Fedex outlook cut suggests “severe global recession” – Zero Hedge
Buy more popcorn.
12/19 Senate will introduce a short-term bill to avoid a government shutdown – CNBC
Make it long-term please.
12/19 Belgian government falls over migration pact as Michel resigns – Bloomberg
12/19 U.S. to pull forces from Syria, officials see full withdrawal – Reuters

12/17 Gun deaths in America reach highest level in nearly 40 years, CDC data shows – CNN
Research shows that whites use guns for suicide and blacks use guns for murder.

Putin Gives Trump 160 Terabytes Of Communication Intercepts ...

A Complete Guide to All 17 (Known) Trump and Russia Investigations ...

THAT is why it takes 17 agencies to investigate. They don't need to search for leads. They only need to follow up.

Italy has agreed to lower their target deficit spending.,
" the composition of the spending still raised concerns, particularly the main expansionary measures — the citizens’ income and rollback of pensions reforms (including lowering the retirement age).

“When these measures will fully come into force they will result in higher costs for the years to come. In 2020 and 2021, Italy intends to compensate the costs by … raising value-added tax (VAT). However, we know that in the past Italy has not activated this kind of safeguard"

Automatic Earth has a very good article,
"However, as I wrote in April 2018, if there is no price discovery, and there isn’t, there ARE NO markets, and it would be good and beneficial if many more people absorb that simple reality.
As long as you limit it to stock and bond markets, it may appear fine that people don’t understand. But as soon as you acknowledge there are no housing markets either for the exact same reasons, the story changes considerably. Because then it becomes clear that all -former- markets, bar none, have been eviscerated by central bank policies that sought to prop up banks, often highly successfully so, which they knew could only happen at the expense of communities and societies."
Got that right.
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