10Y bonds David Stockman

David Stockman: Here Comes The Yield Shock

"That's right. The taxpayers and future generations be damned. Apparently, it doesn't matter how many small businesses, farmers and entrepreneurs get elbowed out of the capital markets by Uncle Sam's $1 trillion per year borrowing spree: Mitchels & Chuckles intend to keep the Washington Monument open and the Imperial City's 3.7 million employees paid in full come hell or high water."

"That's right. The taxpayers and future generations be damned. Apparently, it doesn't matter how many small businesses, farmers and entrepreneurs get elbowed out of the capital markets by Uncle Sam's $1 trillion per year borrowing spree: Mitchels & Chuckles intend to keep the Washington Monument open and the Imperial City's 3.7 million employees paid in full come hell or high water."
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6 comments on “David Stockman: Here Comes The Yield Shock

  1. I enjoy these Stockman reads but with every one I am reminded of him as the architect of ever expanding debt fueled economies. Seems that everyone that was part of the selling debt for sake of their partie’s control lectures us well AFTER they started this debt ball rolling.

    Personally I thought the debt was beyond control after we recapitalized Wall Street banks and insurers, circa 2013 or so. When we feel even the need to “stimulate” during periods of full employment you have to understand that there is no way back.

    To make matters far worse, what have we gotten for all our debt? A worse economy, a worse society, and a more fragile world .. all to reward those who are already too rich to add any money velocity to the system. Should Americans continue to rely on the two party system (one party of sold influence to varying degrees really) or perhaps we need to hire lobbyists for OUR interests, which are no longer any politican’s concerns, save perhaps Bernie sanders.

    NO WAY BACK, NO CONTROL GOING FORWARD.

  2. Bravo as well.

    On Jan 3 2018 banks STOPPED LENDING EACH OTHER MONEY I mean $0 as in $0 (check the FRED chart a straight line down). I wouldn’t put it past these fu*kers concocting this whole reset to coincide with $$$$’s coming back into the US while creating cheaper stock buy backs for their corporate buddies.

    • That is an interesting theory Curt. Sure is flirting with disaster when you consider the connectedness of the world markets these days. As soon as some talking head tells me the fundamentals are fine it makes me nervous as hell .. like 2007 all over again. The more I think about what you wrote, the more I think I need to keep my eyes open. There don’t seem to be many places to hide though.

  3. This is a great article. High inflation is now cemented as the only escape. I remember one of Kevin Muir’s article calling for a decade of sustained 3-4% inflation. Unlikely, I say. While I agree things tend to work out for unforeseen events (generally speaking), situations of excess bring about extreme responses. Just look at XIV this week. I think 1980s inflation is only a matter of time. Stock up on shiny yellow doorstops.

    • Just watch as our resident scumbag house leader takes full advantage of this “opportunity” to gut Social Security and Medicare via interest rates, inflated costs of living, and steadfastly capping the payouts in those programs. Don’t we already have something like 40% of older people that do not have ANY retirement? Shame on them for sure, but also shame on our own politicians for enabling predatory banking and pension raiding practices on our own population.

      Cannibalism will be out in full force shortly.

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