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Old 03-18-2019, 02:31 AM
Danny B Danny B is online now
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,440
The fallout from saving the money renters.

Lots of notes.
"Take a look at the S&P Value Index vs the S&P Growth Index. Shunned!"
ALL credit bubbles came to an end. We are approaching the end of a debt super-cycle. The State is the biggest deadbeat borrower. Both the state and the banks are trying to hold back a collapse. This bubble is bigger than all previous bubbles.
Another graph, https://zh-prod-1cc738ca-7d3b-4a72-b...?itok=4FcBQujG

"On top of a poor month for job creation, Dow Transports also declined for 11 straight days last week, which hasn’t happened since 1971. The last time transports fell 10 straight days was in 2009 amid the great recession."

"Alan Greenspan took another giant policy leap - orchestrating a steep yield curve. By dropping short-term rates to an at the time incredible 3% - banks could borrow fed funds and invest in government debt yielding 8% - magically replenishing depleted capital.
This maneuver empowered the rebuilding of banking system capital ",,,
FROM the saver and taxpayer. .1% paid on savings and,,, loans at 8%. NICE spread.
"They surely didn’t realize it at the time, but our central bank had begun sliding down a most slippery slope: The Fed had created unprecedented incentives for leveraged speculation."
" Did the Greenspan Fed simply not appreciate of the effects of this massive GSE credit creation – or did they clandestinely support it?
Preserve the money renters at all costs.
"In the dozen years since Volcker, the Greenspan Fed had made incredible strides in “activist” policymaking. In 1987, the early-nineties, 1995 and again in 1998, the Fed was content to use new tools and assume new power in the name of fighting deflation and depression risks. Speculative finance turned more powerful at every turn."
In the name of fighting deflation in the upper loop.

"Greenspan had profoundly changed central banking. Bernanke, with his radical monetary views including the “government printing press” and “helicopter money,” took things to a whole new level. Greenspan was happy to manipulate rates, yield curves, market perceptions and incentives for leveraged speculation - all in the name of developing a powerful new monetary transmission mechanism."
Yes, from Main st. to Wall st.
"he Bernanke Fed and others moved deliberately to force savers out of safety and into inflating risk markets. "
The money renters were happy.
"Global markets went to parabolic speculative excess. From February 2016 lows to 2018 highs, the Nasdaq Composite surged 93% and the small cap Russell 2000 jumped 85%."
Viagra laced with cocaine.

"Over the past three decades, things evolved from monetary policy operating subtly to encourage/discourage bank lending at the margin - to central banks expressly working to ensure that Trillions of levered holdings and perhaps tens of Trillions of speculative positions don’t face risk aversion and liquidation."
Money renting is a very crowded trade but, the CBs don't want any of them to lose a penny.
Credit Bubble Bulletin : Weekly Commentary: No One Knows How Monetary Policy Works

9 steps to socialism.
3/16 Foreigners sell US Treasuries for 3rd month in January – Reuters
Everybody is trying to raise cash.
3/17 Italy courting China is a masterstroke of chaos – Tom LuongoIt may look good now. Just wait til China demands infrastructure in case of default.
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