Bubble Dynamics News Today

The late-nineties U.S. “tech” Bubble was financed, at the margin, by high-yield debt (telecom, in particular), speculative hedge fund levered finance, and GSE liquidity. Read more.

The FOMC hiked rates 75 bps Wednesday, the largest rate boost since Greenspan’s lone 75 bps move more than 27 years ago (November 1994). For anything bigger, it’s back to the Volcker era.

Thesis is one of secular change - extraordinary multi-decade Bubble period transitioning (in a highly destabilizing manner) to most uncertain New Cycle. Historical perspective is crucial.

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

February 28, 2021 | Doug Noland: “Fed Credibility Is Evaporating Along With Bond Prices” John Rubino John is author or co-author of five books, including of The Money Bubble, The Collapse of the Dollar and How to Profit From It, Clean Money: Picking Winners in the Green-Tech Boom and How to Profit from the Coming Real Estate Bust. A former Wall Street analyst and featured columnist with TheStreet.com, he currently writes for CFA Magazine. Doug Noland is out with his latest Credit Bubble Bu...

Doug Noland is out with his latest Credit Bubble Bulletin, following a week in which some of the things he’s been warning about began to happen. Definitely read the whole thing (especially the exchange between Representative Warren Davidson and Fed Chair Jerome Powell). But in the meantime here’s a brief excerpt: Global bond markets have an inflation problem. The international central bank community has an inflation problem. Perhaps Treasuries and the Fed face the biggest challenge in ma...