Author Topic: Red Flags Are Suddenly Soaring in Markets  (Read 944 times)

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Offline ABX

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Red Flags Are Suddenly Soaring in Markets
« on: May 29, 2018, 03:05:23 pm »
Quote
Italy’s bond market is in meltdown, its politics in crisis after President Sergio Mattarella blocked the formation of an antiestablishment government and its credit rating under threat.
That is all now making bigger waves: Europe’s deepening troubles and disappointing global growth signals are sparking a sudden rally in haven bonds like U.S. Treasurys. Risk aversion is back.
The moves are notable because haven bond yields have until now shown little reaction to the creeping tide of unsettling news that has emerged in 2018. The overwhelming focus has been on how far and fast yields might rise, particularly in the U.S.....

https://www.wsj.com/articles/red-flags-are-suddenly-soaring-in-markets-1527585485




Online rustynail

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Re: Red Flags Are Suddenly Soaring in Markets
« Reply #1 on: May 29, 2018, 03:15:27 pm »
Is this how 'they' will finally get Trump?  Crash the economy.

Offline Frank Cannon

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Re: Red Flags Are Suddenly Soaring in Markets
« Reply #2 on: May 29, 2018, 03:21:26 pm »
Is this how 'they' will finally get Trump?  Crash the economy.

No. Mario Draghi has been diligently destroying the European economy since Trump was on Prime Time TV.

Offline ABX

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Re: Red Flags Are Suddenly Soaring in Markets
« Reply #3 on: May 29, 2018, 03:30:25 pm »
Is this how 'they' will finally get Trump?  Crash the economy.

Trump isn't mentioned in this article and this isn't a sudden 'they' issue, this is a long time coming and something that has been warned about for a while with the fast increasing retirement generations and strain on pension funds.

Oceander

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Re: Red Flags Are Suddenly Soaring in Markets
« Reply #4 on: May 29, 2018, 04:56:08 pm »
I believe the issue came up because there are fears that Italy has a secret Plan B to leave the Euro.  The fear is that is that if Italy leaves the Euro, its Euro-denominated bonds will all be converted into Lira-denominated bonds, and that currency will quickly depreciate, leaving the bond-holders with serious losses.  Apparently, the candidate for finance minister who just got nixed by the Italian President was bandying about the need for just such a Plan B. 

Offline Free Vulcan

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Re: Red Flags Are Suddenly Soaring in Markets
« Reply #5 on: May 29, 2018, 05:13:12 pm »
Unless it somehow starts pulling at threads on the world economy, this will most likely make the U.S. a safe haven where investors will flock to.
The Republic is lost.

Offline kevindavis007

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Re: Red Flags Are Suddenly Soaring in Markets
« Reply #6 on: May 31, 2018, 11:34:53 am »
I'll be surprised is the EU is still around in 10 years.  The problem with Europe they never had a history of being united (unlike us) unless it was united by force.
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Offline edpc

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Re: Red Flags Are Suddenly Soaring in Markets
« Reply #7 on: May 31, 2018, 04:15:44 pm »
Is this how 'they' will finally get Trump?  Crash the economy.


All that QE bs pulled in the last admin will come due at some point.
I disagree.  Circle gets the square.