Posted on 09/08/2016 7:54:54 PM PDT by Lorianne
They’d believed in six years of Wall Street hogwash.
Not that you would have guessed from the stock market, hovering at all-time highs, or from soaring junk bonds, even the riskiest paper: CCC-and-below rated junk bonds skyrocketed since their February 12 low as their average yield plunged from 21.6% to 13.5%. Even the S&P US Distressed High Yield Corporate Bond index has soared 57% since February 12.
Those are miracles to behold.
At the slightest squiggles of the market, the Fed goes into bouts of by now embarrassing flip-flopping on rate increases that demonstrate to the world that they have absolutely nothing else in mind than keeping the stock market inflated and keeping the biggest credit bubble in US history from unceremoniously imploding.
And the ECB is out there with its scorched-earth monetary policies, with negative interest rates and bond purchases, including asset backed securities and corporate bonds, that it has been caught buying directly from issuers. It’s driving even corporate bond yields into the negative. Just now, French drugmaker Sanofi and German household products maker Henkel issued bonds with negative yields, thus getting paid by these hapless investors to borrow.
The idea for bondholders being that you have practically no income throughout and get “most” of your money back at maturity. An idea that is sending NIRP refugees into US assets, driving up their values and pushing down their yields. It all works wonderfully.
SNIP
Student loans now exceed credit card debt!! What is important is to be sure that that these poorly educated leftists pay every damned dime of those loans or take it out of their social security and any tax refunds!! We absolutely waive not one damned dime!!
I know practically nothing about high finance. But I know leftist and I know they are cunning, evil and vengeful.
I think the right is being set up. If Trump wins, and that is looking more and more likely, I predict the left will collapse the economy. It will be blamed on the republicans and the right. The LIV with believe the lies just as they believe it was Bush who cause the 2008 recession.
I have little doubt the 0bama administration has planted a number of economic land mines to be detonated once he is safely out of office.
Just my 2 cents.
It will not be long now. They will start a big war to cover the mess.
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