I've been in the business for almost 17 years now and I can't remember a time when virtually all assets classes went up together. Needless to say these are highly unusual times.
Plenty of worry for the famous wall that markets often climb, but no Armageddon's on the horizon. Maybe we can get back to "normalcy" after all, even with increased market "volume" more to the upside.
The growth of the U.S.'s bigger and broader productive economy has been stunted by bad policies and bank bailouts benefiting rent-seeking financiers siphoning off an outsized percentage of the nation's gross domestic product (GDP).
The U.S. Treasury Department on Thursday released a report warning of potentially "catastrophic" damage should Congress fail to raise the debt ceiling and prevent the government from defaulting on its debt.
It is time for courage in front of those who play the credit of the United States of American at the Russian roulette. There is a moment when giving the authority to a small group of extremists to threaten the Nation is purely and simply unconstitutional and unethical.
What do the president, the party leaders, all members of Congress, all the headline economists (both hawks and doves), the entire Federal Open Market Committee, and just about everyone else apart from Modern Monetary Theory (MMT) proponents agree on?
There are many that won't entertain the U.S. being vulnerable to a mass sell-off in U.S. treasuries but then I doubt that four years ago, Berlusconi, Papandreou, Socrates, Cowen and Kiviniemi would have signed up to that notion either.
We continue to believe that investors are underestimating the risks inherent to the bond market at this stage in the game. Bond investors are not being compensated for the risks they are assuming when they are not even able to earn the expected rate of inflation.