RE:Similarities . Fundamentally things are much more extreme now than a few years ago ... so to expect the same results could be lethal.
As if we should have it tattooed on our foreheads: “gold is money, everything else is debt". JPM is laughing in his grave. Got gold?
Here we see the ‘fountain of liquidity’, the Ponzi scheme that has a finite end … and as usual, the central banks and their minions will skim off the profit and leave the debt on the backs of the public … bail-ins anyone?
Friday, February 1, 2019
Treasury Bulletin...Nobody Buys US Treasury's But "Other Investors(?)" & Mutual Funds Todays question; Who buys and holds America's federal debt?
“ … Public marketable debt is skyrocketing while debt held by Intra-Governmental trust funds continues slowing. …
“ …This means the domestic public has been left to purchase an unprecedented $3.2 trillion, or 84% of all issuance since QE ended. …”
“ … only a buyer without profit motive would use leverage to borrow short to buy long dated debt with a negative return assured. So, why would individuals or institutions buy 7 year to 10 year Treasury's, particularly when the yields are less than half of the necessary 7% to 8% plan annual returns??? Funny thing is, the 7 to 10 year durations are exactly what the Fed has primarily rolled off its balance sheet!...”
“ …
Is there any party (aside from
central banks or central bank conduits) that could come up with such gargantuan quantities of dollars to yield so little and do it essentially without leverage???
Tell me again, who buys US Treasury's...and particularly who buys mid and longer duration US debt (responsible for setting the 30yr mortgage rate)??? Otherwise, this may sadly be the smoking gun of an active, accelerating, and perhaps unraveling Ponzi scheme?...” Waiting for the Contrarian Call as Credit Implodes https://www.zerohedge.com/news/2019-02-01/waiting-contrarian-call-credit-implodes And here is the failing hub, the bankrupt lynchpin of insanely leveraged global debt; Deutsche Bank "An Inability To Turn Around": Deutsche Bank Slides After Reporting Dismal Earnings https://www.zerohedge.com/news/2019-02-01/inability-turn-around-deutsche-bank-slides-after-reporting-dismal-earnings