Apparently, this is the first time it has ever happened. I guess this means that we are going to have a 1987-like crash? ------------------- Really, why is this a big deal? Everyone knows that the flight to bonds, driving yields down, is because of the tariff crap with China. If people had faith in the US economy, they would not be fleeing to bonds, which drives down yields, which drives down stocks. Chicken little. Mreh. The USA is doomed, we have negative GDP now, and everyone is going to lose their jobs tomorrow, 100% unemployment.
If you think the global economy is in meltdown mode and that there is almost 16 Trillion in Negative yielding bonds because of tariffs, you need to seriously re-evaluate why you are even speculating in financial markets... Smoke some weed broski, chill and relax... Reason why rush to sovereign bonds is bad is cause it's a rush to safe collateral for money markets, it means Corporate bonds and other assets aren't as accepted anymore, which indicates lack of desire to lend. I would say Gold and Government Bonds are the top two accepted collateral's right now. Basically credit markets are starting to freeze up, especially in Asia, and if Boris can lock in no deal brexit in parliament, then yea it's a wrap on global markets considering we are at the 9th inning with two outs, no deal brexit is the Lehman catalyst... china has at least 75 % of the worlds debt, especially short term debt and they are tanking like nobody's business, that's Lehman on steroids HSBC and Deutsche Bank are blowing up, it's a global recession dude... It is what it is
Yer not seeing the sarcasm in my posts. It is subtle, I have been mixing it with real thoughts lately. It is elusive. Like mixing Lou Reed with A Tribe Called Quest. Dichotomy.
GREAT !!! Looking forward towards recession. Around end of recession (don't know when), property will be super dirt cheap. And I will be able to buy perhaps one or two properties at dirt cheap price. But definitely we have to hold on to it for many months or years Bull run, traders earn $$$. Bear run, traders also earn $$$. recession, traders also earn $$$.
https://www.americanbanker.com/opinion/deutsche-bank-shows-it-learned-nothing-from-the-2008-crisis Deutsche Bank’s profitability also appears to be especially sensitive to interest rate movements, which is a vulnerable position to be in given the recent rate cut from the Federal Reserve and other central banks. For example, Goldman Sachs reportedly has estimated that a rate cut of a fraction of a percentage point would eat away as much as 42% of Deutsche Bank’s 2019 estimated earnings. Moreover, Deutsche Bank’s well-known intent to sell troubled assets weakens its negotiating position in the markets. It is likely to sell troubled or nonperforming assets at significant discounts, realizing equally significant losses over time. In addition, Wall Street’s awareness that Deutsche Bank may be seeking to unwind a massive derivatives portfolio in its “bad bank” unit will increase those losses. Deutsche Bank has reportedly already set aside more than $1.6 billion to cover expected losses on that portfolio, which reflects a discount to compensate the few purchasers in the market for a portfolio of that size for the risks and high capital requirements associated with those derivatives. Other illiquid, hard-to-price assets are likely to form a substantial part of the bad bank’s assets and positions. Those assets are not just hard to sell. They are hard to model, which means easy to manipulate for capital purposes. The ultimate market values may differ significantly. And Deutsche Bank’s latest plan proves, yet again, that privatizing gains and socializing losses at too-big-to-fail global banks is alive and well.