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Albert Edwards Says MMT ‘Captured’ Biden, Warns Of Stock ‘Riot’
A few weeks ago, while describing a meeting at the White House between Joe Biden, Janet Yellen, Kamala Harris and a handful of executives including Jamie Dimon, I wrote that "the whole thing has an unmistakable 'caretaker' feel to it."
That wasn't necessarily meant to be pejorative. I was just stating what feels, to me anyway, obvious. Harris, in her demeanor, comes across as a kind of President in-waiting. There’s a lot of energy there, and it feels like she’s bottling it up and saving it
Bubbles waiting to burst? How about (in no particular order): Bitcoin, NDAQ, TSLA, ARK*, EM, high-yield corporates, ABSes of all kinds.
…and Russell 2000.
SPACs?
Very prescient thoughts as they relate to what has obviously been slow to fruition since late May. A pendulums swing visually appears rapid toward the middle and we are nearing that. Will this be as smooth as a pendulum or am I too wishful.
Bagmen are important when deniability is deemed important. They do scim away some fat.
Did somebody just change the ticker for 10yr yld to “GME”? Go ahead, compare a 6-month chart for the 10yr yld to BTC.
I’m pretty sure this isn’t what folks had in mind when talking about sustainable increases in rates.
Good point. IMO, it’s a predicatble outcome of adding $5 trillion to the national debt last year and, maybe, another $4 trillion this year. That’s a whole lot of issuance and unless and until the Fed says it’s going to buy everything, rates are headed up.
Too many caretakers on the same side of the boat and a pendulum with lots of kinetic energy..No surprises on any of this . H….. this is one of your best in a long while.. I agree with most all of it but the subjective part is really about whether or not we are steering to or away from the proverbial iceberg and what should our nearest proximity resemble when we have hopefully passed at our closest point. Always love Albert’s point of view as it resembles what I am used to conjecturing.. We are now in a more predictable range to make smart investment choices that the 20-20 will validate .. This is going to be about ideology at some point…
I would be curious to hear what Edwards suggests Biden, Yellen, Powell, and Harris should do. Easy to be a critic, hard to be a policymaker. As for the great melt, a lot of that thesis hingers on demographics which has been baked in over the last 15 years and going forward for the next 10. We can see the last 15- they are not that great worldwide. As for the next 10 who knows. Edwards could be right if nativist jingoism declines worldwide, and birth rates pick up in the developed world. We’ll see.
Before the great melt, I would expect the general public to come to terms with MMT. I’ll wager that peak bond bubble will happen when the US reaches Japan’s stage of low growth plus we have voters demanding debt monetization. Until then, no one will have to act on the elephant in the room.
Nations that export raw materials will understand at that time that they’ve been taken for fools, exchanging goods for Monopoly money to serve at the pleasure of idle bums in wealthy Nations. When they start demanding payment in a currency other than dollars, I’ll worry about interest rates. Fortunately we’re still a stable powerhouse of innovation and value creation with a desirable currency backed by the strongest military ever.