Corporate Debt at Insane Levels – Information worth knowing

[Tom Nolan + 2,443]

If you are a Trader, or if you are living on this planet, the following information will be of value.  Most people are unaware of how money originates or how the financial manipulations work.   ~~~One example:  When you get a loan (mortgage) for your house, the bank “makes up money out of thin air” to loan to you.  The money for your house does not come from other depositors’ money.   ~~~Another example:  Big Investment Banks sit on the board and own many of the Federal Reserve Banks around the country.  Following the 2008 crisis, these same banks bailed themselves out after the bubble popped.  This aspect is relevant, because now in 2019 we are in a much larger bubble than 2008 with the same basic playbook by the same perpetrators, but in a different debt market.

 

A good documentary about this topic, complete with transcripts and references, is “Century of Enslavement: The History of The Federal Reserve”.  It contains footage from Federal Reserve testimony on how the system works, who owns the Federal Reserve Banks, and more.   Here is the YouTube Video https://www.youtube.com/watch?v=5IJeemTQ7Vk&feature=youtu.be and here is the Corbett Report website which offers other video formats, along with reference material.  https://www.corbettreport.com/federalreserve/  (It should be noted that YouTube/Google have blacklisted the original Corbett Report documentary so that it becomes difficult to find with a Google Search or a YouTube Search.)

[Tom Nolan + 2,443]

Danielle DiMartino Booth, a former adviser to the president of the Dallas Federal Reserve, is the author of “Fed Up: An Insider’s Take on Why the Federal Reserve Is Bad for America”.   Booth discusses the huge corporate debt and bond bubble which we are currently in.   Her animated metaphors and idioms add to the color of her presentation.  Filmed Nov 14, 2018  https://www.youtube.com/watch?v=Jvrgmbb5vEE&feature=youtu.be&t=2m

 

6 minute mark:  “How did the Fed conceive QE (Quantitative Easing)?” …In fact, inside The Fed, they never called it Quantitative Easing. They called it “Large Scale Asset Purchases”…It started with the United States…but it was as contagious as the clap… …rescuing AIG, 85 billion dollar bailout…by the end of 2017, Quantitative Easing was running at a…rate…as if we were bailing out AIG every single month….”  

28:16 mark:  “…we don’t find out what unhinged looks like until we see volatility in the bond market. That is where the ‘go-go juice’ is. If you are not following the MOVE index, put it on your radar…it is the credit markets where damage truly can be done…last crisis we had over $170 trillion in debt globally, today we have over $250 trillion in debt. A lot of it is toxic…

 …writing about “Triple B” investment grade bonds…General Electric, I would remind you was a “Triple B” rated company. It’s bonds traded like junk…

 …Where is the parallel?…subprime mortgages circa 2007 peaked out at 2.3 trillion dollars.

 The “Triple B” segment of the investment grade bond market is now 3 trillion dollars. It is larger than every other investment grade rated bond combined…

 …falling angels…because Credit Rating Agencies have actually done something remarkably similar to what they did during the last run-up, the last credit boom. Their analysts have been strong armed by…

 …and who will pay?….”

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Jason Burack, a mining and oil company analyst, often reports on current economic situations, and has mentioned these people..

[Tom Nolan + 2,443]

Trouble is coming…

There is good reason that Zero Hedge has been running many articles about the REPO rates.  The Federal Reserve has been throwing huge sums of money into the overnight system of banks loaning each other money.  Remember 2008?...AIG was loaned 85 billion by the Federal Reserve to bail them out.  In one night (for many recent consecutive nights), that kind of money is being loaned.

 

EXCERPTS

.. it was Bank of America that let it slip, and in a chart from Bank of America’s Michael Hartnett, the Chief Investment Strategist called what is coming by its real name: QE4.

The problem, as Hartnett also identified, is that this will take the central banks' balance sheet to new all time highs, resulting in the biggest asset bubble in history getting even bigger... and setting up the world for an even greater crash when the fed's pushing on a string fails. And while nobody knows when that will happen, the fact that the financial system nearly collapsed last week even with $1.4 trillion in "excess" liquidity for reasons still unknown, means that like a great white shark, the market now needs constant liquidity injections, or else it will collapse.  https://www.zerohedge.com/markets/repo-market-guru-whatever-changed-last-week-clearly-still-problem