Donate Bitcoin

Donate Paypal


PeakOil is You

PeakOil is You

Central Banks

Discussions about the economic and financial ramifications of PEAK OIL

The Central Bank Bubble: How Will It Burst?

Unread postby AdamB » Mon 06 Nov 2017, 23:44:38


Alberto Gallo of Algebris Investments steps up to take his shot at the $64,000 (more like trillion) question in a report published this week “The Central Bank Bubble: How Will It Burst?” Gallo manages the Algebris Macro Credit Fund described as “an unconstrained strategy investing across global bond and credit markets, and with lead responsibility for Macro Strategies” on the company’s website. Gallo sets the scene as follows. Most investors are still playing the game, and in the same direction. We estimate there are currently around $11tn in negative-yielding bonds and over $2tn in strategies that explicitly or implicitly depend on stable volatility and asset correlations. If low interest rates and QE have been the lever pushing up prices of dividend and coupon-paying assets, central banks are the fulcrum. This fulcrum is slowly shifting: the ECB has just announced a reduction in its bond


The Central Bank Bubble: How Will It Burst?
Plant Thu 27 Jul 2023 "Personally I think the IEA is exactly right when they predict peak oil in the 2020s, especially because it matches my own predictions."

Plant Wed 11 Apr 2007 "I think Deffeyes might have nailed it, and we are just past the overall peak in oil production. (Thanksgiving 2005)"
User avatar
AdamB
Volunteer
Volunteer
 
Posts: 9292
Joined: Mon 28 Dec 2015, 17:10:26

Re: Central Banks

Unread postby Subjectivist » Mon 13 Nov 2017, 07:52:04

The Central Banks look out for the Central Bankers. IF the rest of us benefit they don’t mind, but if we get squashed they don’t care about that either.
II Chronicles 7:14 if my people, who are called by my name, will humble themselves and pray and seek my face and turn from their wicked ways, then I will hear from heaven, and I will forgive their sin and will heal their land.
Subjectivist
Volunteer
Volunteer
 
Posts: 4701
Joined: Sat 28 Aug 2010, 07:38:26
Location: Northwest Ohio

The Biggest Bubble Ever, In Three Charts

Unread postby AdamB » Mon 11 Dec 2017, 20:56:16



Each quarter, Credit Bubble Bulletin’s Doug Noland posts a “flow of funds” report that analyzes the debt and securities markets data released by the Fed in its Z.1 Report. It’s always shocking to see the numbers we’re dealing with, but even more so lately as history’s biggest financial bubble starts to dwarf its predecessors. Here’s some of the scarier data in chart form, with Noland’s commentary: To the naked eye, percentage debt growth figures for the most part don’t appear alarming. But there’s several unusual factors to keep in mind. First, the outstanding stock of debt has grown so enormous that huge Credit expansions (such as Q3’s) don’t register as large percentage gains. Second, overall system debt growth continues to be restrained by historically low interest-rates and market yields. Debt simply is not being compounded as it would in a normal rate


The Biggest Bubble Ever, In Three Charts
Plant Thu 27 Jul 2023 "Personally I think the IEA is exactly right when they predict peak oil in the 2020s, especially because it matches my own predictions."

Plant Wed 11 Apr 2007 "I think Deffeyes might have nailed it, and we are just past the overall peak in oil production. (Thanksgiving 2005)"
User avatar
AdamB
Volunteer
Volunteer
 
Posts: 9292
Joined: Mon 28 Dec 2015, 17:10:26

Previous

Return to Economics & Finance

Who is online

Users browsing this forum: No registered users and 46 guests

cron