Monday, April 18, 2016

Nomi Prins* Just Issued A Dire Warning
About What Is Going To Trigger
Nomi Prins thinks the bond market will deflate when central bank policies run out of steam or are stopped - "That is why central banks keep coordinating and are so afraid to go back on what they started in the financial crisis ... If any of these policies were to have been working for real economic growth, they wouldn’t need to have gone on for this many years, which means they actually have only existed in order to help inflate assets in the financial system and to create liquidity that would have otherwise not been there for these assets. So as long as they continue to pump, we will see the last remainder of these assets being supported. And when they stop, when it can’t happen any longer, when they start to raise rates, when corporate securities start to default more, particularly in countries outside of the U.S. and in certain sectors like oil, which even though oil prices have been rebounding is still facing default and write downs across the banks’ books, when this starts to happen more in a cumulative fashion, that’s when you start to have bond deflation and equity deflation in earnest."
24 minutes podcast
LINK HERE to the podcast

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