What's Coming Will Be Much Worse Than 2008

While everyone is “high fiving” over stocks holding up, the bond market is back to imploding. Already Treasury yields have bounced and are soaring higher in one of the nastiest breakouts in over 20 years.

In a world awash in too much debt (global Debt to GDP is over 300%) this is a MAJOR problem.

Most investors believe that the 2008 Crisis was the worst crisis of their lifetimes. They’re mistaken… what’s coming down the pike when the Bond Bubble blows up will be many times worse than 2008.

The reason is that bonds, not stocks, represent the bedrock of the financial system. When a stock bubble bursts, investors lose money. When a sovereign bond bubble bursts, entire countries go bust (a la Greece in 2010).

On that note, I want to point out that bond yields are not just rising in the US... we're seeing them spike in Germany, Japan, and others.

This is a truly global problem, and if Central Banks don't move to get it control soon, we're heading into a MAJOR crisis.

On that note, we are putting together an Executive Summary outlining all of these issues as well as what’s in terms of Fed Policy when The Everything Bubble bursts.

It will be available exclusively to our clients. If you’d like to have a copy delivered to your inbox when it’s completed, you can join the wait-list here:

https://phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

Comments

Pitty Fri, 03/09/2018 - 19:49 Permalink

Phoenix capital you will never get anyone to buy your stuff with stupid articles like this, us 10 year still only at 2.87 rates still at historic lows, and the jgb still can’t break through its long term trend line,  ecb,  japan still very easy, please wake me up when something really happens, beyond silly and stupid!

OverTheHedge Pitty Sat, 03/10/2018 - 00:51 Permalink

It's a Phoenix Capital article: you don't need to read it, because firstly, we are all doomed, secondly it is just a rehash of whatever Tyler said last week / last month, and thirdly, sign up for his news letter. I check in every 6 months or so just to confirm nothing has changed and, guess what? Nothing has changed.

It has been this way for many, many years. 

In reply to by Pitty

Knave Dave Fri, 03/09/2018 - 20:11 Permalink

It is impossible for the Fed to move to get control of this. They bought bonds in order to lower long-term interest rates. They cannot do the reverse and throw a lot more bonds back onto the market by forcing the US government to refinance with other buyers without raising long-term interest rates. The idea of doing the reverse of quantitative easing and not causing a reverse effect is untenable.