Forget Facebook. Michael A. Gayed, chief investment strategist at Pension Partners LLC, talks about an alarming spread between junk bond prices (falling) and long treasury prices (rising). This spread typically leads equity markets and has previously served as a warning sign for stock investors. Here is a direct link.
Sen. Jeff Merkley, (D-OR), provides a preview of today’s hearing in Congress and discusses JPMorgan’s $2 billion trading blunder, and why he thinks banks used for loans should not be in the hedge fund business.
Black Swan author Nassim Taleb talks to the BBC on the economic genocide of current policies where taxpayers backstop risk takers. It is not that JP Morgan recently had bad luck, the reckless habits of levered risk seeking have always been doomed to self-destruct. If the real economy is ever to recover, we must cut the open credit lines from governments to investment banks. A civil society cannot afford this sadistic approach to continue.
