The escalation of global financial parasitism – Nick Beams

The announcement last week by the European Central Bank (ECB) that it was going to front-load asset purchases under its quantitative easing program was another revealing insight into the state of global financial markets. It underscored their volatility and the lack of any overall plan by the financial authorities, supposedly in charge, who rush from one trouble spot to another …

sandp

Credit Markets have Melted Overnight. Derivatives are a $1 Quadrillion “Ticking Time Bomb” – Bill Holter

That didn’t take long did it?  I of course am speaking of the second overnight and global meltdown of the credit markets …in the last four business days!  Before getting into this topic which I believe will soon be seen in retrospect and by historians far into the future as “THE” trigger event.   Just as we saw last Wed. …

Bond market sell-off signals mounting financial crisis – Nick Beams

The instability of the global financial system and the potential for another crash have been underscored by a major sell-off of government bonds this week. Yesterday saw European markets display levels of volatility not seen since the euro zone debt crisis turmoil of three years ago. In the course of the day, the yield on the German 10-year government bond, …

Junk bonds

Junk Bonds Are The New Haven Assets – Anchalee Worrachate Sally Bakewell Katie Linsell

The new fixed-income haven is, of all things, the market for junk bonds. With government bonds in Germany to Japan yielding less than nothing, money is pouring into exchange-traded funds that buy speculative-grade debt, traditionally the riskiest of fixed-income assets. The pace is staggering. So far this year, about $9 billion has flowed into the funds globally, a significant chunk …

Is the Stock Market Another Bubble? – DEAN BAKER

The stock market has recovered sharply from the lows hit in the financial crisis. All the major indices are at or near record highs. This has led many analysts to worry about a new bubble in the stock market. These concerns are misplaced. Before going through the data, I should point out that I am not afraid to warn of …