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.
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.
Tags: border adjustment tax, CNBC, German 2-Year yield, Santelli, U.S. Dollar
February 24, 2017 at 12:00 pm |
Unfortunately this one doesn’t play. Maybe it’s some kind of new geographical blocking they’ve implemented.
March 1, 2017 at 8:02 pm |
I bought $40 of bearings for 2.18 this week, shipped price from china. Us Government subsidy?
March 2, 2017 at 9:26 am |
Video is playing today at last, yay.
March 6, 2017 at 2:24 pm |
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
March 12, 2017 at 3:53 pm |
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
March 15, 2017 at 4:11 pm |
What happens to/in credit markets when the ECB begins tapering their QE? Bond prices will be smashed, no?
March 16, 2017 at 2:25 pm |
i will bide my time—maybe some change after the french election if le pen doesn’t prevail