Tuesday , November 24 2020
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Tag Archives: bond bubble

More Monetary Insanity & The Negative Yielding Bond Bubble

Had to get this last one in before we hit the surf. We like to look at the Cleveland Fed’s Median CPI calculation as it removes monthly outliers that can pull the averages up or down.  It hit a 10-year high in July and is pushing up close to 3 percent. Of course, we are in deflation and U.S. bonds yields are going negative.  Doesn’t the Median CPI inflation trend confirm it? Now tell us again how many times does the Fed need to cut?   Where have they failed in meeting their dual...

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Alan Greenspan On The “Twin Bubbles”

We suspect the duration and resolution of the twin bubbles will be a bit more complicated than the dot.com and credit/housing bubble — i.e., a swift waterfall collapse followed by a sharp rebound driven by the Federal Reserve to even higher ground.   The nature of the leverage and type of  “money” driving assets are  “different this time.” Furthermore, if you listen carefully to Greenspan and read between the lines,  it sounds like the rise of inflation, possibly via a collapsing...

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Historical Precedence For How A Bond ‘Bubble’ Ends

The UK government tried very hard to hold on. They had been able to raise $200 million from JP Morgan, a significant sum at that time under those circumstances. The British had also secured an almost equal amount from banks in France. The new National Government had produced a budget slashing spending by £70 million, while also raising taxes by £75 million. None of it was enough, the die long past cast. The pound was under intense pressure in 1931, a result of the deepening depression. The...

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