Notes From Underground: CNBC Santelli Exchange, February 21

During my hiatus, I spoke with Rick Santelli (click on the image below) to discuss some of the new issues presenting investment opportunities, in addition to concerns surrounding potential negative fallout from ill-conceived models, such as the effect of the border adjustment tax on the global financial system.

Yra and Rick, February 21, 201 6

All week the news continues to be about the all-time low yields made on the 2-year German schatz. As I warned last month, Gundlach was correct being short European debt instruments, but the BUND and German instruments were the wrong instrument. German debt is high quality collateral. The capital key of the ECB and the growing budget surplus in Germany is causing a shortage of these high quality assets, which forces investors and financiers to push German yields even lower. There will be more coming on this when I return next week.

 

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7 Responses to “Notes From Underground: CNBC Santelli Exchange, February 21”

  1. David Richards (@djwrichards) Says:

    Unfortunately this one doesn’t play. Maybe it’s some kind of new geographical blocking they’ve implemented.

  2. Chicken Says:

    I bought $40 of bearings for 2.18 this week, shipped price from china. Us Government subsidy?

  3. David Richards (@djwrichards) Says:

    Video is playing today at last, yay.

  4. Arthur Says:

    China’s economic miracle, like that of Japan before it, is over. By George Friedman

    http://info.geopoliticalfutures.com/chinas-economy-continues-decline?ecid=ACsprvvWhy_VzUk-DrKBz-3SUFml9SPXtlBIcAX7a8CbZh6Djr0_RpRwMSoDaQ79Bd7JeS0iUor6&utm_campaign=Reality%20Check&utm_source=hs_email&utm_medium=email&utm_content=43878301&_hsenc=p2ANqtz-8PMw8E9L1zqOh6_E0p4w99RX-0dibN_MIDxpM5PqrALt7t8DsujRs3YqxrQQ_4VMKNVFI-k0jevT2PAubCBSZ4lhxe0Q&_hsmi=43878301

  5. Chicken Says:

    Will Bundesbank suffer for their sins once ECB finally does raise rates? Seems like Bundesbank has incentive to allow low rates fro at least the time being?

    https://www.bloomberg.com/news/articles/2017-03-08/germans-really-really-love-the-euro

  6. Chicken Says:

    What happens to/in credit markets when the ECB begins tapering their QE? Bond prices will be smashed, no?

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