A rapid depreciation in the Chinese currency could lead to an Asian currency market crisis.
2008 was caused by derivatives based on consumer-focused assets (houses). The next crisis will be driven by derivatives on government-focused assets (bonds).
What we must remember is this: we are in a bear market, and the risk of a countertrend rally is present, but confined. The opportunity on the downside movement dwarfs the risk of a push higher, as these charts illustrate.
The map is not the terrorist...
Gold is 3.6% higher this week and is now over 9% higher year to date. The dollar saw sharp falls this week on growing doubts that the Federal Reserve will be able to raise interest rates. The gains this week were due to increasing concerns about the U.S. and global economy.
Gold may have considerable more upside to go before encountering serious resistance.
Can We Stop This Monster?
When sovereign bonds are mispriced, EVERYTHING is mispriced.
BANZAI7 FOOD BEVERAGE AND KEYNESIAN DOUCHEBAG WARNING
Do you remember when Greenspan was befuddled when natural market rates wouldn't obey his commands in the previous decade? Well, I sure hope Yellen does. Even if she doesn't the high yield financed US energy probably won't be around long enough to find out.
Ponzi schemes are as old as time.
A weaker Dollar and another production cuts news helped Oil to stage a rebound despite a bad EIA inventory report.
The Central Banks have turned us into dispensible members of the Suicide Squad
The List Grows ...