“The historic relationship between trends on main street and Wall Street to go absolutely haywire.”
It’s comforting. Sort of. But sort of not.
“Mind you, while that number wasn’t exactly diminutive, it had taken all of 188 years to accumulate. That is to say, Uncle Sam had borrowed an average of $28,000 per week during the 9,776 weekssince George Washington was sworn in as the nation’s first president.”
“We have crossed the fiscal Rubicon.”
“… if you are still in the Wall Street casino, run don’t walk toward the nearest emergency exit.”
“Even as a matter of economics 101, the forthcoming $1.8 trillion of combined bond supply from the sales of the US Treasury ($1.2 trillion) and the QT-disgorgement of the Fed ($600 billion) is self-evidently enough to monkey-hammer the existing supply/demand balances, and thereby send yields soaring.”
But for those interested in trying to “DO SOMETHING” (as opposed to just kicking back and being “actively” passive)…
“That refers to Wall Street, Washington, the Dems and the GOP, and all the far and near corners of the planet which are implicated in their collective follies.”
Cheers to you in the new year…
Well, an eventful week ended on a sour note, which is a shame for the bulls because Thursday was a barnburner.
“However, by 2008’s final quarter, corporate debt reached 523% of internal funds and the high-yield EDF soared to 10.33%. At the same time, a mild recession was turning into a global calamity.”
“The Fed and BoE are once again presiding over a credit bubble, with the BoE in particular suffering a painful episode of cognitive dissonance in an effort to shift the blame elsewhere – the credit bubble is everyone’s fault but theirs.”
Can I borrow your double-edged sword?
“Well, that’s nothing to be proud of, Rusty…. 50 yaaaards.”
I have absolutely no idea how any of that is sustainable and/or realistic.