Guest Post: Guess What? Not All Government Borrowing Is Bad

“Pundits constantly shout about the dangers of governments borrowing too much. They make all sorts of scary charts, and, uniformly, put all borrowing in the same pile. Debt is bad. It will be our downfall. Stop borrowing immediately. Yadadada.”


One Bank Asks: “Who Will Burst This Bubble?”

“We have no political expertise but nonetheless recognise the palpable relief but we also understand the real problem for equities worldwide is one of high valuations, high expectations, yet still lacklustre growth and ever worrying and mounting levels of leverage.”

Guest Post: The End Game

“We have too much debt. It’s simple math. We are screwed. Full stop.”

Here’s What Rising Rates Mean For Government, Corporate America, And You

One of the obvious questions as rates begin to rise is this: what happens to government, corporate, and household finances?

Good News! “Only” 16% Of The World’s Total Debt Now Has A Negative Yield

The only question now is whether the long list of “known unknowns” eventually conspires to put the brakes on the reflation meme and trigger a central bank response that plunges us right back down the “accommodative” policy rabbit hole.

Remember: “Fake It ‘Til You Make It” Doesn’t Work For Sales

The great thing about the bottom line is that you can “fake it ’til you make it” – so to speak. Actually, you can fake it even if you don’t make it. That’s the beauty of the Fed-inspired hunt for yield. Investors are so damn desperate for any semblance of return that they’ll snap up new…

Blockbuster: Corporate, Bank Debt Sales Break Records In Busy First Week

How anxious are corporate management teams to get out ahead of Donald Trump’s inauguration? Very. Or at least that’s what the debt markets seem to be saying. For the first time since 2012, banks were pricing corporate bond deals on the first trading day of the year. Nearly a dozen firms sold roughly $20 billion in…

“Active Re-leveraging”

Ok so this is interesting. One would think, given the experience of the beleaguered US energy complex, that US corporates would be loathe to rack up too much leverage in the post crisis world, especially now that the Fed looks set to finally embark on a hiking cycle. Apparently however, that’s not the case. Have…

Will Trump’s Fiscal Policy Be A “Game Changer”?

From Deutsche’s Alan Ruskin (emphasis mine): For those who were sitting on trading floor, it felt like Brexit all over again. A market led by skewed positioning, and bits of pieces of misleading early polling/turnout data, only to be taught a raw lesson about the deep divide between urban and rural and particularly those left…

So Much For Liquidity

Well this isn’t what you want to see: (Charts: Morgan Stanley) So much for liquidity….

Chart Of The Day

“Deleveraging”… (Chart: SocGen)