EU leaders were proposing capital controls, border controls, and even limiting the amount of money that could be removed from ATMs throughout Europe back in 2012. They'll do it again.
The 2008 Crisis was not THE Crisis. The 2008 Crisis was largely a banking crisis focused on securities. The REAL Crisis will hit when the bond bubble collapses.
ZIRP forces retirees and the baby boomers to become more frugal based on lower interest income... this is DEFLATIONARY and has crippled consumer spending.
Today the financial system is even more leveraged than in 2007… backstopped by even less high quality collateral. And this time around, most industrialized sovereign nations themselves are bankrupt, meaning that when the bond bubble pops, the selling panic and liquidations will be even more extreme.
This was the “Rubicon” moment: the instant at which Central Banks gave up pretending that their actions or policies were aimed at anything resembling public good or stability.
The point is not to focus on how stocks bounced the last few days, but how susceptible they are to a very serious collapse occurring when the US Dollar begins its next leg up.
Forget rate hikes… an entire generation of investors and money managers (anyone under the age of 55) has been investing in an era in which risk has generally gotten cheaper and cheaper. What happens when the bond bubble bursts?
