Want the worse case scenario wrapped up in a nice bow, you lazy fuckers? Well here it is — your generations crash to come — the reason you’ll hate the essence of life and America — the thing you didn’t see coming until it happened.
Heading into 2007, the Fed hiked rates 17 times, from 1% to 5.25%, until it broke the housing market. We all saw it coming. You didn’t need to be smart or keen to know it was going to cause dislocations. Those on Wall Street at the time knew of the CMOs and CLOs, the CDOs that were neatly tucked away like little time bombs, patiently waiting in the midst to destroy the world. Since the crash of 2008, Wall Street has been borrowing more money than ever. As a point in fact, corporate debt has more than trebled and that’s so wonderful for stock buybacks and bonuses, and expansion — the hiring of unlimited amounts of salesmen designed to propel growth to new heights — the effervescent temerity that kept the whores of Babylon content these past 10 years.
This out tonight: Janet Yellen warns of poor underwriting on America’s $9 trillion + problem.
“Corporate indebtedness is now quite high and I think it’s a danger that if there’s something else that causes a downturn, that high levels of corporate leverage could prolong the downturn and lead to lots of bankruptcies in the non-financial corporate sector,” Yellen told economist and New York Times columnist Paul Krugman at the City University of New York on Monday.
“I think a lot of the underwriting of that debt is weak. I think investors hold it in packages like the subprime packages … the same thing has happened. It’s called CLOs, or collateralized loan obligations,” she added.
The comparison to the infamous practice of securitizing large amounts of subprime mortgage loans into bundles may spook some investors who recall the consequences of the housing crisis between 2007 and 2010. Corporate indebtedness has ballooned in recent years, with companies now carrying a $9.1 trillion debt load compared to just $4.9 trillion in 2007.
What splendour! What gravitational fuckery! What wonder!
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Not again!!
Regards
Chuck Bennett
The Fed Chair who did not believe we would see another crisis in our lifetime.
And where did a lot of that Corporate Debt come from as pointed out? Zirp
so fed up with Wall St. and corporate bad fuckery. And they always win and we always lose.
WHAT’S WRONG WITH THAT PICTURE??
Last month Yelling said this:
Former Fed Chairwoman Janet Yellen said Tuesday the Federal Reserve should stick to the task of raising interest rates to slow down the economy despite the market turmoil seen this month.
“I think it’s appropriate for the Fed to be raising interest rates a bit more,” Yellen said during a talk at the Charles Schwab Impact 2018 conference in Washington.
Yellen said financial conditions remain “accommodative,” or easy, despite the market correction.
The Fed has been stimulating the economy since 2009 and now wants to take its foot off the accelerator to keep the expansion going, and keep inflation contained, she said.
“I think that is a very tricky business,” she said, and it could end in recession.
Very good synopsis of the situation. I like your biblical imagery.
I might risk taking some nutripharmaceutical today. I hurt like a MOFO. Straight THC. If I write particularly incoherently, you’ll know why – – unless I am always incoherent.
They are called, hysterically, iCan capsules. Terrapin Investment Fund1, L.L.P. , 180 Henry St., Jersey Shore, PA 17740, Permit # GP-4002-17. Nothing about where or who manufactured it. Unless they are a Lab as well as a fund.
Fucked up again. Terrapin is an L.L.C. But of course!
Terrapin for the name of the fund is hilarious as well.
Smellin talking out of both sides of her mouth. Abolish the fucking Fed and let the markets be free. Free markets are healthy markets. Too much fucking debt caused by massive liquidity! Fucking morons warned of frozen credit markets like it was going to cause the sun not to shine the next day. Bullshit! Guess fucking what? A way would have been found. So, all this bailout, contract breaking, easy money ideas were only going to make matters worse. Low and behold, they have. For instance, corporate debt 9 plus trillion “If we all get reckless with debt the taxpayers are going to have to bail us out”. It’s called the free ride mentality. However, now the responsible who got bruised the last time, are going to be taken completely out. The Fed, an agency taking douchebaggery to a new level.
sounds like Greenspan getting religion once he was no longer at the helm