Wednesday, May 18, 2016

"Markets Have No Purpose Any More"
Markets don't have a purpose any more - they just reflect whatever central planners want them to .. This is the greatest monetary experiment in history. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable .. Markets don’t have a purpose any more — they just reflect whatever central planners want them to."
- Mark Spitznagel
LINK HERE to the article

1 comment:

Anonymous said...

Banks Sued Over Manipulation on $9 Trillion Agency-Bond Market

Bank of America Corp. and Deutsche Bank AG were among five banks sued over claims that traders conspired to manipulate the market in agency bonds, which is made up of an estimated $9 trillion of debt issued by government entities and institutions like the World Bank.

The suit, filed by the Boston Retirement System, a pension fund representing city workers, follows inquiries by the U.S. and U.K. into the market for the securities, known as supranational, sub-sovereign and agency bonds, or SSAs. The probes target alleged illegal collusion in international bank trading, after regulators reached billions of dollars in settlements over manipulation claims involving interest-rate benchmarks and currency markets.

The suit, filed Wednesday in Manhattan federal court, adds the threat of possible triple damages available under U.S. antitrust law for investors harmed by any illegal price-fixing. Also sued were Credit Agricole SA, Credit Suisse Group AG and Nomura Holdings Inc. or their units.

The SSA market is generally defined to include international development organizations, government-sponsored entities and some sovereign debt. Depending on the securities which are included, the market could range from $9 trillion to $15 trillion, according to data compiled by Bloomberg. The bonds generally have high credit ratings because many are backed by explicit or implicit guarantees.
U.S. Probe