The Fed and the looming capital market meltdown
The Federal Reserve system made a future financial panic or… Read More »The Fed and the looming capital market meltdown
Financial markets
Financial markets are becoming unhinged
The massive emergency easing measures enacted by the Fed over the weekend to inject liquidity into the global financial system are a sign of sheer panic. Both their sheer scale, and radical extent–including cutting rates to zero, $700 billion in new…
Prepper’s Bunker: Coronavirus update II
We have been warning about the impending economic crisis since March 2017. Central bankers and Chinese leaders have been able to postpone the onset of the crisis for…
Repo-market turmoil: staring into the financial abyss?
One thing has been bothering us for six years. How can so many economists and economic commentators dismiss the ever-increasing market meddling of central banks so lightly?
The first time we warned about this possible threat to financial markets w…
Towards the crisis
The world economy has not been in a more precarious situation in over a decade. Growth is faltering everywhere, with the Eurozone flirting with recession, while central banks have returned to monetary easing after just one year of global tightening.
Will central banks survive?
Almost all economists and the vast majority of the general population erroneously believe that central banks are, basically, indestructible. And most fail to appreciate that central banks are different from normal commercial banks in just two respect…
The dangerous zombie infestation (of the world economy)
It is estimated that over 14% of companies in the S&P 1500 are zombies. In China, roughly 20 percent of A-sha…
Manias, Panics and Crashes. History repeats.
The stock market has been rallying lately. It has been supported by the People’s Bank of China (PBoC), which started its liquidity operations in mid-December, and the Federal Reserve (Fed), which changed to a much more ‘dovish’ tone in January. But, …
The scenarios of the collapse
2019 has started more calmly after a very volatile year-end in the markets. Focus has been on the trade deal between China and the US and the words of the central bankers, most notably those of Jay Powell. However, this is all just a distraction, a s…