Maybe this is what the future looks like but I still can't see how you can print your way out of trouble ... ad infinitum. Sure it maybe a scare tactic but there have been a lot of chatters of late. The fact that Euro zone central bank has Negative interest is a big concern. It means that people over there don't have any confidence to invest so the central banks are like putting a gun in their heads to force them to invest.
BUT it's also true that things you don't see that cause a crash. BUT it's also true that things you don't see that will begin a new bull markets. Well, it's your call :-)
Quote:
there actually are troubling linkages between several negative developments that, on the surface, appear to be random and unrelated ...
"The failures in the repo market, negative-yielding debt, a deeply negative term premium, trade conflicts around the world and a collapse in manufacturing all seem unrelated right now, but I don't think they are random,"
... negative yields on sovereign debt as the loudest discordant note today
If you push down [interest rates] too much, you create the problem you are trying to solve
rising numbers of IPOs from loss-making companies
... IPOs from unprofitable companies "signs of excess" that often accompany the late stages of an economic expansion. Indeed, large numbers of unprofitable companies going public also marked the dotcom bubble
When you push liquidity through the system like they [the Fed] have the last ten years, you create a giant bubble
the Fed creating a "Ponzi sector," which includes "companies that have no chance of ever earning a profit," but which attract investors.
high risk leveraged loans have been collapsing in value, and the total global exposure may be as high as $3.2 trillion
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