Peter Schiff: The Bank Of England Rings The Mother Of All Bells

Good article. Almost everyone is addicted to low interest rates. When you start to drain the pool you find out who is naked. Almost everyone.

I am not the most informed person but I have yet to find out what the special meeting of The Fed on Monday was all about?

I suspect over the weekend there was jaw boning of The Big Boys along with the implicit guarantee of The Fed/PPT to reverse the decline in financial assets and knock down interest rates. The last 2 days in financial markets can not be explained in any other way.

An interesting aside on the markets is that volume was higher of the down side than on the up side the last two days. Why might this be the case?

Eat The Rich – Game Stop – the ultimate in how stock price can become detached from economic value.

Everyone talks about The Market as if The Market is some sort of omniscient entity that fairly allocates value to economic assets. False.
 
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Word on the street is that BlackRock threatened to not price one of the total return ETFs because debt was likely to trade at distressed levels absent bank intervention. Solvency issues for some major players in the form of an inability to meet regulated capital requirements on the day. Pension funds and financial institutions and shit.

UK long dated is used as collateral (hypothecated) and if the debt trades at what amounts to distressed levels there would be some forced selling, margin-calls etc.

Mr. Fink or his officers were uncomfortable with that, or so they say.
 
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Why does the BOE & Exchequer admitting they don't know what they are doing mean the Pound should rally? Its a mystery to me.

6X leveraged pension funds? Why are those even around? When will these idiots admit the country is bankrupt and can't pay out these crazy pensions?
 
The problem with pensions & public works, if it's like Canada (And the UK almost always is), the government has the worst of the worst pension system, which means high risk & little reward. Private sector got rid of those almost 2 generations ago as they were nothing but a dangerous liability.

I'm talking about defined benefit vs defined contribution issues...
 
Real Money said:
Word on the street is that BlackRock threatened to not price one of the total return ETFs because debt was likely to trade at distressed levels absent bank intervention. Solvency issues for some major players in the form of an inability to meet regulated capital requirements on the day. Pension funds and financial institutions and shit.

UK long dated is used as collateral (hypothecated) and if the debt trades at what amounts to distressed levels there would be some forced selling, margin-calls etc.

Mr. Fink or his officers were uncomfortable with that, or so they say.
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The stunning part is the giant hypocracy of it all.
The FED imposes all kids of margin requirements on investors to minimize their leverage.
I have a 401K (that's a private pension account). I'm not even allowed to get a Margin agreement for it.
But then they (pensions as "quasi-governments") get leveraged to the hilt.
Damage gets done.
We pay to fix.
Rinse Repeat.
The Jekyll Island thing is really turning into a nightmare.
 
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