Banks are again taking the same risks that triggered the financial crisis, and they’re understating these risks. It wasn’t an edgy blogger that issued this warning but the Office of the Comptroller of the Currency. And it blamed the Fed&rsq…
Ah, the spine-tingling pleasures of having this delicious breed of bonds in your conservative-sounding bond fund.
“We fear that, once the effects of monetary stimulus disappear in the US, the weakness of the economy due to income inequalities may suddenly be revealed.”
Now that the Fed is pulling back from its money-printing binge, the IMF, the global bondholder bailout outfit, is starting to panic.
No, I didn’t sell out, though I had an offer. Don’t worry, I won’t go mainstream. Or go soft on Wall Street. I won’t water down my sarcasm, either. But there are big changes coming.
So what happens when these huge and reckless buyers with their nearly endless resources start cutting back after a phenomenal peak? Well, we know what happened in 2008.
And if big players stumble? The Fed has “a number of tools.”
Politicians and Eurocrats have already taken credit for the recovery, and a whirlwind of backslapping has ensued – prematurely, it turns out.
It always starts with a toxic mix: Home sales plunged and inventories jumped in May. The housing market is buckling under its own inflated weight.
I was interviewed by Jorge Nascimento Rodrigues for Janela na web, a Portuguese management site. After what I said, he might never interview me again :-]