Debt Rattle November 14 2016


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    Wyland Stanley Transparent Car, General Motors exhibit, San Francisco 1940 • Era of Low Interest Rates Hammers Millions of Pensions Around the World (
    [See the full post at: Debt Rattle November 14 2016]


    Trump is not going to square this circle. US Treasuries continued their post election melt up. The 35 year bull market in bonds is probably over. The only thing that could save it is another massive dose of QE, maybe. They may save the Treasury market but the rest of the worlds bond markets no, and that includes all manner of US bonds from the best corporate to the worst junk.

    All the talk about him and his team being interest rate hawks is just that, talk, For every politician in the world low interest rates are always and in every case the best short term prescription. If you think Trump doesn’t want low rates your crazy. If the melt up in rates continues he will notice soon enough and he is going to rail against the ‘markets’ hurting him, mark my words. And his hawkish advisers are going to turn into ultra doves. Low rates are encoded into most of the worlds people as an unquestioned good and businessmen most of all.

    The 35 year bull market has been a tailwind for the financial markets, governments, the real economy and most of all for the holders of bonds because you could always sell with a capital gain and liquidty was usually good in the bond markets. The marked to market losses in the bond market globally the last week are already surely in the hundreds of billions. If it’s over everything changes, every single thing.

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