View Single Post
Old 03-13-2019, 03:10 PM
Danny B Danny B is online now
Platinum Member
Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,391
ZH, Facebook and the slow burn

I started writing on global cooling 10 years ago. The idea is slowly catching on .

Zero Hedge put up this article showing that the libs have gone completely crazy in higher education.
Shortly after that, Facebook blocked ANY links to ZH articles.
Facebook Reverses Zero Hedge Ban, Says It Made A "Mistake"
Everything that the libs do seems to be a knee-jerk reaction to something that upsets them..

Meanwhile, Cheney is pissed off because we don't have enough wars.
Daily Reckoning has praised Trump as the "do nothing" president,,,, referring to his lack of wars.
Armstrong has been recognised worldwide as being correct on his investment advice. He has warned loud and clear about the collapse of public debt. Nobody will buy sovereign debt. The CBs send truckloads of pixels to each other that they sue to buy each others debt. While stocks are referenced to some tangible object or service, bonds are just a hope & prayer credit instrument. Stocks are more-or-less hanging in there but, bonds aren't doing well at all.

Various corporations and other entities sell bonds to borrow money. There is no requirement that these bonds and companies have any visible means to repay these bonds. The bonds are just rated. Any downturn in the economy lowers this rating.
There are a couple hundred $billion in bonds that are VERY shakey. Just the same, companies MUST rollover these short term notes. Buffet said, when the tide goes out, you will see who has been swimming naked. It looks like January 2020 is when the tide goes out.
U.S. public debt is rising tremendously as GOV tries to pump up everybody who is failing. This transfers the risk to the public sector. Eventually, we will see just how long GOV can fake it.
California is quite the generous Sate,

The problem with Zero Hedge is that it punctures the official narrative.
"But we did let the crisis of 2008 go to waste. Rather than reconstructing a new foundation out of the wreckage, we simply restored the status quo ante, and left the world’s elite financial engineers with a relatively free hand to create a wide range of new destructive financial instruments."
"Here’s another disaster waiting to happen: Globally, financial markets today are seeing a rebirth of “collateralized loan obligations” (CLOs), instruments broadly similar to the “collateralized debt obligations” (CDOs), which helped to blow up the financial system in 2008. CDOs were asset-backed instruments, a “blended” security comprised of risky mortgage-backed bonds and much of the rest from theoretically safer tranches. The theory underlying them was that the lower the investment quality, the higher the compensating yield, but in reality most turned out to be toxic junk. What distinguishes CLOs from their CDO “cousin” is that instead of repackaging mortgages, subprime and otherwise, CLOs repackage corporate loans, and consumer credit, such as car loans.

Unfortunately, in yet another instance of lessons unlearned from 2008, the collateralized loan obligations, like the CDOs, have virtually non-existent investor protection, “with over 70 percent lacking any covenants that would allow monitoring of financial condition and early intervention to manage problem borrowers."
Reply With Quote