Corporate bonds are bought by investors for the purpose to supplement their income. Bonds are an important category of the fixed income market. This is a good time to take a look at why companies are borrowing money by selling bonds. The graph below shows in the first quarter of 2020 there’s an execrated phase … Continue reading The inevitable fate of corporate bonds; the day comes to show it are emptied bags
Category: Central Banks
The madness of ‘zero sum game’ world
Ongoing government and central bank interventions has transitioned the economy and financial markets into zero sum games. It means that profits are private but losses and risks are transferred to the public. Profits are made at a high cost, by putting society in a position of disadvantage. These are no longer markets based on exchange … Continue reading The madness of ‘zero sum game’ world
The Great Debt Excess
“NY Fed President Williams says U.S. is not ‘anywhere near’ its limits to run up debt”. Was it really a surprise that NY Fed President Williams said that the U.S. isn’t not anywhere its limit to run up debt? According my Twitter feed not. Reactions on this differenced somewhere between laughing hard, sarcasm and ‘it … Continue reading The Great Debt Excess
The Dollar deflation myth unraveled; a big picture view
For years I’ve been listening to deflationists, a narrative that is especially popular under dollar bulls. The deflation narrative makes little to no sense to me. In this blog I’ll explain why deflationist Dollar bulls could be wrong. Deflationists do think that there will be a 1929 - 1933 type of deflationary crisis again some … Continue reading The Dollar deflation myth unraveled; a big picture view
What is next? Thoughts on the Central Bank Chess Game
Central Banks want inflation while pumping up the stock and bond market. If you are looking for inflation, look there. My best guess is that they know damn well that inflation won’t stay there. If they did homework, they have learned from 2008. Central Banks wanted inflation and they got it, but not where they … Continue reading What is next? Thoughts on the Central Bank Chess Game
