The Future Is Administered

You know, there's still nearly $15 trillion in negative-yielding debt out there. That's just a friendly reminder at the end of a week that found bond yields tumbling as a positioning shakeout conspired with an endless deluge of "Delta" variant headlines to create what I've characterized as a "false optic" growth scare. While hardly an earth-shattering observation, a world awash in negative-yielding debt is conducive to risk-taking, which helps explain the persistent bid for risky assets. This

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5 thoughts on “The Future Is Administered

  1. So a millennial in the U.S. (or Japan or the Eurozone) should just go all in on equities, knowing that the Fed (or BoJ, etc.) will always ride to their rescue? Or, to put it differently, Minsky’s fundamental insight is no longer valid? I’d like to believe…

  2. Your dystopian future forecast seems to be a lot like Ridley Scott’s vision in “Blade Runner.” For me your recent musing on money and religion hearken back to the Platonic view of reality. The only things that are real are what we define as real and when we get bored, as we do often these days, who knows what will be real next year? It’s also worthy of note that there is an increasing minority of scientists who believe the “matrix” could actually exist and be administering all of us.

  3. “Tighter financial conditions would choke the real economy.“

    This statement seems to be generally accepted wisdom but warrants additional nuance.

    A clogged transmission channel might result in less damage to the real economy than anticipated, or not. In either case, a reexamination of the merits (and costs) of our current system would seem to be in order before we reach the apocalyptic state this article ends on.

  4. I have 2 self managed accounts. One is taxable and the other is an IRA. I was already almost only in ETF’s but I am fiddling around the edges so I end up as follows: 1/3 SPY, 1/3 QQQ, and 1/3 SPYD&VYM. I would combine the last 1/3- but I don’t want to pay any income tax to do so.

    On another note- I recently discovered “Sapiens: A Graphic History: The Birth of Humankind (Vol. 1). I loved the book- but this graphic “comic” book is a fun read.

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