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Just One Chart
Because it's called a credit "cycle" for a reason...
Of course, it's different this time.. except as Andy Redleaf noted...
In 2007, "The driver... will be a sudden, profound and pervasive loss of faith in the alchemy of structured finance as currently practiced."
In 2015, will it be a "sudden, profound and pervasive loss of faith in the alchemy of monetary policy as currently practiced."
Charts: Bloomberg
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Bring down this house of card BITCHEZ
end this shit-show !!!
Won't happen, they aren't out of either smoke or mirrors.....
We cycled some folks… It’s only fair… I have a phone... and a pen... ;-)
Looney
Sweden just cut it's base rate again. Now -0.25% Whoopee!
Gonna come here to We're Exceptional Land, too!
Yes, exshleptional indeed! ;-)
Looney
It’s not alchemy.
Alchemists really thought they could figure out how to turn lead into gold.
The F-heads running this sh*t show know they are engaging in fraud and theft.
And turning lead (and other elements) into gold is not only possible, it has been achieved.
Modern day alchemists are more focused on turning human beings into debt slaves.
And with that they have been very successful.
pods
To return the favor, could turn the alchemists to corpses with lead implants, no?
We're not so sure they do, they got paid to turn carbon into diamonds for industrial use. When they asked where are you going to get high quality carbon to keep making diamonds, we told them that after the workers of the Fed retired and died, we take their teeth out and use those to make future high quality diamonds, they seem confused about it all.
Weed and blow can only fix so much
he who is glad at calamity will not go unpunished.
Pr 17:5b
Is it calamity when rampant fraud is cheered for the good or the bad?
The real calamity is mankind trying to control and outright disobey nature. Markets are natural. It will snap back and that will be the punishment.
junk is what worthless script is defined as.
Chart "training" is an art. Nice work Tyler!
do you think that they will kill one-two big usa banks to save others or what?
Yeah, probably. They hate competing with themselves, pantomime though that "competition" may be.
Last man standing is where we're headed. On a giant pile of money, everyone else on the planet scratching around naked in the dirt.
Then we know who won.
He still won't be happy.
When he has everything, where's he going to get more from?
Absolutely
always thought they would have to make a sacrifice or two to appease j6p ... in order to bail others
of course, Goldman will be first in line to pick off choice morsels from carcass(es) at rock bottom price ... with taxpayer get stuck with the "bad" bank losses.
Ain't Amerika grand?
They already killed Lehmans and bear stearns
Why don't you people just trust our PHD's for god sakes. THEY HAVE PHD"S DAMN IT!
they need phd to make money, not to save people, sad thing...
Piled Higher and Deeper
Can't wait to buy me some more JNK, but hopefully around 6 this time instead of 26, like it was in '09.
faith has little to do with a rigged market
True, for now. But once a critical mass loses faith, then the rigging will no longer work... I don't know when it will happen, but know it WILL happen, and it is in much less than 10 years time.
I wonder how high the market would be if the holders of Yen, Euro, Aussie$, etc. weren't running from their currencies...
Nothing, I say NOTHING, I YELL NOTHING TO SEE HERE.... MOVE ALONG...
https://www.youtube.com/watch?v=5NNOrp_83RU
I guess QE1, 2, 3, inf where just not big enough. If only the FED acted bolder, if only this awesome, perfect program of monetary easing had created a bit more money, than it would all go well. We would be on a permanent plateou of steady growth forever.
Indeed they did miss a stitch in time so now we'll have nine more.
Hey, my credit card still works! I just ordered more ammo with it.
% Delta is quite a bit different between the two HY charts:
In the top chart (Lehman), HY% was approaching 2 (~2.25) and increased to >8% before the initial bounce, roughly a 400% delta.
In the bottom chart (current), HY% were approaching 3 (~3.33) and increased to ~5.5% before the initial bounce, a 65% delta.
In my world, 65% is quite a bit different from 400%.
Yeah it'd be nice to see this as ONE chart, not two where the scales are different.
I'm saying that even though the chart pattern is the same, a 400% change in interest rates is 800% different from a 65% change, and 800% is a big difference.
I.e., don't just look at the pattern, compare the magnitude also.
Good observation but we are not at the bottom of the chart, if you look at where the S&P 500 trns down, aboround October 2007 you can see that the two are similar. You can see that there was a small bounce in HY followed by a long decline about this time frame. Many similarities.
"Is that like a unicycle? I borrowed money for college and bought 2 of those. They are collecting dust along with my diploma." - Amerisheep
The question, which we will not know the answer to until it has already happened, is will the Grexit create another systemic risk collapse via derivatives?
No. Default as defined by derivative contracts is no longer a legal or even descriptive term. It will soon be classified as the N word where only certain people will be allowed to utter it in hushed tones. No debts held by banks or government will ever default ever again. They will simply be rolled over with new debt and reassigned a new negative interest rate. It's hotel California where you can check out but never leave. The debt will never have redeemable value beyond what you can trade it for (a new devalued currency) but you can hold it in your portfolio forever and claim it as an asset.
Banks currently are getting FREE money. No need to lend it, just park it at the FED....BUT when interest rates rise the banks will have to put the money to work by making more loans....
They get interest on those reserves. If the FED raises funds rates w/o raising reserve rates, maybe so(inflationary). If the FED raises rates on the reserves, too, maybe not(deflationary).
I'm going to turn over a Redleaf if I have quit BTFD
9/11 Truth: Judges shocked by first time seeing video of WTC 7 collapse in Denmark court
a fitting analogy: https://www.youtube.com/watch?v=hC3VTgIPoGU
Now is different. The central banks will do absolutely anything to delay a crash because a crash = end of world