In a CNBC “Squawk Box” interview of Steven Mnuchin, the next Treasury Secretary, Steve brought up the idea of creating a super-long bond. The debt is so enormous that the only way to deal with it is to extend the payback date when a significant portion of that debt becomes due. Steven Mnuchin told CNBC…
The high yield debt chart is very troubling IMO. If we overlay the S&P 500 and the high yield debt chart, a huge bearish divergence is revealed. Check out this chart with the red line being the S&P 500 and the purple line being high yield debt.
High yield debt (purple) is nowhere near (Read More….)
The national debt in the U.S. is going to explode higher during a Trump Administration. My prediction is that by the end of Trump’s first term, the national debt will be more than $23 trillion. It took 240 years to build up the first half of our debt. Democrats and President Obama doubled that in (Read More….)
We pulled off an incredible victory of getting Donald Trump elected. Congrats guys, we did it. Now the first point of focus is the backward bending Laffer Curve. Thanks to the reckless policies of Democrats and Obama, the national debt is up to almost $20 trillion dollars. The horrible national debt leaves Trump with little (Read More….)
Saudi Arabia is now offering an international bond that yields 4.6%. The WSJ writes…
The $6.5 billion 30-year portion of Saudi Arabia’s bond is set to pay 2.1 percentage points more in yield than a comparable U.S. Treasury, or around 4.6%. That is a sizeable pickup in a world where developed-market bond yields are on (Read More….)
The US national debt just broke above $19.5 trillion. Both Democrats and Republicans are to blame, but it is important to note that President Obama and Democrats increased the national debt more than all President’s before combined.
George Bush exploded the national debt by $3 trillion in response to an imploding economy and 911. (Read More….)
Foreign countries are dumping US debt at an alarming pace. Foreigners dumped $54.2 billion in US Treasury bonds in just the last four weeks.
Since the start of 2016, foreign countries have sold more than $177.7 billion in US Treasury bonds, bringing the total to $2.827 trillion, the lowest amount of Treasuries held by (Read More….)
There is $1.103 trillion in outstanding auto loan debt in the US which is the highest level ever recorded.
We know that the economy has been slowing for a few years now so how could so many people still be taking out auto loans? If we overlay auto sales and auto loan debt, we (Read More….)
I’ve been asking traders what causes low-interest rates. The consensus is that the Federal Reserve is what causes low-interest rates. That is not entirely true and believing that could be harmful to your trading account.
Some 250 years ago, David Hume was the very first economist to explain what causes low-interest rates.
The three things (Read More….)
The increased volatility that we have been waiting for finally arrived last week as institutional traders clean house as they return from summer vacations. Corporate debt offerings surged as company’s looked to roll over financing costs ahead of a potential Fed rate hike by the end of the year. The August ISM Services reading hit (Read More….)
In 2016, foreign countries have dumped a shocking $192 billion worth of U.S. Treasury bonds. This dumping of bonds is the biggest selloff of U.S. debt since 1978.
China, Japan, France, Brazil and Colombia are the leading countries that are dumping U.S. debt.
U.S. Treasury bonds are the safest investments in the world. Countries often (Read More….)
The BOE restarted its QE bond purchases last week, or at least it tried to. The BOE could not find enough bonds to buy.
The first auction on Monday went fine but on Tuesday, the BOE fell £52 million short of its target to buy £1.17 billion in long-dated government debt.
What happened (Read More….)
While markets around the world have bounced back after Brexit, the same can not be said for Italy. Italy became the first victim of Brexit as Italian banks collapsed shortly after the UK voted to leave the EU.
The Money GPS published this video back in March about what a dire situation Italy is in:
China’s soaring bond debt is nothing new. What is new is how the IMF’s number 2 official urged China to take immediate steps to tackle rising corporate debt or risk “dangerous detours” during the country’s transition to a consumption-oriented economy.
David Lipton, the IMF’s first deputy managing director said, “Corporate debt remains a (Read More….)
George Soros has come out of retirement to personally oversee big bearish bets against the market including bearish derivatives and huge positions in gold and gold mining stocks.
The spooky thing is that the last time Soros did this was in 2007, right before the last recession.
George Soros is a big supporter (Read More….)