Category Archives: Debt Bomb

Why is the Head of the NY Fed Talking About NIRP?

As I warned yesterday, the Fed has discovered that: 1)   It is impossible to normalize monetary policy in an Everything Bubble. And… 2)   The Everything Bubble is now bursting. The Fed now has a choice: implement monetary policies even more … Continue reading

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How Bad Are the US’s Finances That the Fed is Talking About Them on Record?

Yesterday, Fed Chair Jerome Powell made a starling admission,  “The U.S. federal government is on an unsustainable fiscal path,” Powell told the Senate Banking Committee, noting that “debt as a percentage of GDP is growing, and now growing sharply… And … Continue reading

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How Wealth Grabs Fit Into the Coming US Debt Crisis

Yesterday, Fed Chair Jerome Powell made a starling admission,  “The U.S. federal government is on an unsustainable fiscal path,” Powell told the Senate Banking Committee, noting that “debt as a percentage of GDP is growing, and now growing sharply… And … Continue reading

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The US Has a Debt to GDP of 105% and It’s Only Going to Get Worse

Yesterday, Fed Chair Jerome Powell made a starling admission,  “The U.S. federal government is on an unsustainable fiscal path,” Powell told the Senate Banking Committee, noting that “debt as a percentage of GDP is growing, and now growing sharply… And … Continue reading

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The Fed Chair Just Admitted On Record That The US is Heading For a Debt Crisis

Yesterday, Fed Chair Jerome Powell made a starling admission,  “The U.S. federal government is on an unsustainable fiscal path,” Powell told the Senate Banking Committee, noting that “debt as a percentage of GDP is growing, and now growing sharply… And … Continue reading

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Even the IMF Knows Corporate Bonds are A Major Problem

Too many investors are focusing on what the Fed is doing today. The REAL issue that matters is what the Fed did from 2008-2016. When the Fed created a bubble in US government bonds, also called Treasuries, it was effectively … Continue reading

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Are Investment Grade Bonds REALLY Investment Grade?

Too many investors are focusing on what the Fed is doing today. The REAL issue that matters is what the Fed did from 2008-2016. When the Fed created a bubble in US government bonds, also called Treasuries, it was effectively … Continue reading

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Remember, Stockholders Come AFTER Bondholders During Default/ Restructuring

Too many investors are focusing on what the Fed is doing today. The REAL issue that matters is what the Fed did from 2008-2016. When the Fed created a bubble in US government bonds, also called Treasuries, it was effectively … Continue reading

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Forget the Fed, the Everything Bubble Has Gone Corporate… And It’s Bursting

Too many investors are focusing on what the Fed is doing today. The REAL issue that matters is what the Fed did from 2008-2016. When the Fed created a bubble in US government bonds, also called Treasuries, it was effectively … Continue reading

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Prepare For a Wave of Corporate Debt Defaults

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting. By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a … Continue reading

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US Corporates Are Sitting On Bad Debt Equal to the GDP of Spain

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting. By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a … Continue reading

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Warning: the Crisis is Anything But Contained

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting. By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a … Continue reading

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Debt Contagion is Now Spreading to More Systemic Debt Instruments

Ignore the day-to-day moves in the markets, in the big picture, some MAJOR is happening… namely, that the Everything Bubble is bursting. By creating a bubble in sovereign bonds, the bedrock of the current financial system, Central Banks created a … Continue reading

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Warning, the Debt Bomb is No Longer Contained. It’s Officially “Early 2008”

“How will we know when the Everything Bubble has burst?” I had just finished a presentation on The Everything Bubble at an investment conference in Montreal when this question was asked. My answer? “You need to watch the junior debt … Continue reading

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Will Inflation Blow Up the Bond Market in 2019?

Inflation is here and it’s BAD. You see, inflation enters the economy in stages. It’s not as though the Fed begins to print money and POOF! inflation appears. It takes time. The first stage occurs in the manufacturing/ production segment … Continue reading

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The Most Important Bond in the World is BLOWING UP

The Everything Bubble is bursting. After the 2008 Crisis, global central banks created a bubble in the sovereign bond market via ZIRP and QE. Because these bonds are the bedrock of our current financial system, when Central Banks created a … Continue reading

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Stocks and Bonds Are BOTH Collapsing… Buckle Up! $SPY $TLT

The Everything Bubble is bursting. After the 2008 Crisis, global central banks created a bubble in the sovereign bond market via ZIRP and QE. Because these bonds are the bedrock of our current financial system, when Central Banks created a … Continue reading

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Are Bonds No Longer a Safe Haven?

The Everything Bubble is bursting. After the 2008 Crisis, global central banks created a bubble in the sovereign bond market via ZIRP and QE. Because these bonds are the bedrock of our current financial system, when Central Banks created a … Continue reading

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The Everything Bubble Has Officially Begun to Burst

The Everything Bubble is bursting. After the 2008 Crisis, global central banks created a bubble in the sovereign bond market via ZIRP and QE. Because these bonds are the bedrock of our current financial system, when Central Banks created a … Continue reading

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Warning: The Everything Bubble is in SERIOUS Trouble

As we have been warning repeatedly over the last few months, the Powell Fed is totally unlike the Bernanke or Yellen Feds. Former Fed Chairs Ben Bernanke and Janet Yellen were “married” to the bull market in stocks. Indeed, from … Continue reading

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