[CatRocketLauncher]

Is the stock markets' higher highs an indication of future prosperity, or a market in the final stages of "melting up" before it corrects hard? End of the 30 bull market in bonds as central banks have no runway left, only fantasy financial ideas such as negative interest rates. Interest rates heading up which increases debt repayments, at a time when most consumers are still picking themselves up from the last crash. Pension industry in meltdown due to theft, mal-investment, poor predictions based on 7% returns Y/Y. Bearish on Europe. The market is over valued but what causes the crash?

Episode 1021
https://www.rt.com/shows/keiser-report/3...iser-1021/

Episode 1022
https://www.rt.com/shows/keiser-report/3...iser-1022/

[Kid Twist]

What was that thread about when we project the debt "matters" ... couldn't find it in search, but we talked about how insurance and pensions are hurt the most when the interest rate is that low for that long ...

[CatRocketLauncher]

(01-24-2017 04:04 PM)Kid Twist Wrote:  

What was that thread about when we project the debt "matters" ... couldn't find it in search, but we talked about how insurance and pensions are hurt the most when the interest rate is that low for that long ...

The pension industry is so fucked because it wasn't counting on (artificially) historic low interest rates. It needs a yield (3/4/5/6/7!%) to turn over. The pension industry is forced to buy boring so called "low risk" investments like bonds, but government debt isn't risk free. For the last decade the smart money has been made trying to second guess what central banks do next, instead of pricing in risk and offering a commensurate return for that risk. At some point somebody will pass the memo to Wall St. that the free money spigot is getting turned off and that they'll have to invest in real things to get a return instead of fantasy financial instruments, but I digress.

Historically the "bond vigilantes" would have called the bluff on central banks (and by extension, governments) forcing the interest rate higher, but they were unable to do this because of unlimited new credit via QE.

No wonder anyone born after 1990 doesn't have a pension, as the economy has shifted to the gig, zero hours, "just in time" model.