“there are a lot of firms that will go bankrupt” in the coming down-cycle.
Yellen and Powell are on the same page. This bubble in leveraged loans ($1.3 trillion!) is destined to end badly…"there are a lot of firms that will go bankrupt" in the coming down-cycle. pic.twitter.com/EO14wrqGga
— David Rosenberg (@EconguyRosie) October 26, 2018
Fed’s Vermilyea: Banks Are Making Same Bad Loan Mistakes as Last Two Crises
And a former Fed official put it even more directly: “As we learned during the crisis, it’s hard to overstate the capacity of banks to do dumb things, especially when there is a lot of money to be made from trying to keep the party going.”
Pick Your Debt Poison: Will Corporate Debt Be the Catalyst for the Next Recession?
One thing in corporate America is certain: If you allow companies to borrow money at close to zero-percent interest, they will. All they can, as long as they can. And woe betide anyone left holding the bag in a market that has drastically overpaid for highly risky corporate bonds.
Hey, Mr. President, ever think you're going to shift your complaining away from Powell and towards the real reason why rates are backing up? pic.twitter.com/EfmlVIsPd4
— David Rosenberg (@EconguyRosie) October 24, 2018
Never forget. CNBC 2 weeks ago pic.twitter.com/HvZhU56iQi
— Hipster (@Hipster_Trader) October 26, 2018
Peak consumer confidence? Is today as good as it gets? pic.twitter.com/dCoFlukyZQ
— Alastair Williamson (@StockBoardAsset) October 26, 2018
The last recession officially began in the 4th quarter of 2007. Yet #GDP for that entire quarter was 2.5%. But GDP in Q1 of 2008 was minus 2.3%. Recessions always come as a surprise, despite all the obvious warning signs that are routinely ignored.
— Peter Schiff (@PeterSchiff) October 26, 2018
The coming bear market and inflationary recession will have resulted from reckless monetary and fiscal policies of the Federal Reserve and the Federal Government. Both parties are at fault, but since Trump will be President when it hits the fan, Republicans will take the blame.
— Peter Schiff (@PeterSchiff) October 26, 2018