The Briefing Room

General Category => Economy/Business => Topic started by: ABX on May 29, 2018, 03:05:23 pm

Title: Red Flags Are Suddenly Soaring in Markets
Post by: ABX on May 29, 2018, 03:05:23 pm: Quote
Italyâ€™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: Europeâ€™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 (https://www.wsj.com/articles/red-flags-are-suddenly-soaring-in-markets-1527585485)
Title: Re: Red Flags Are Suddenly Soaring in Markets
Post by: rustynail on May 29, 2018, 03:15:27 pm: Is this how 'they' will finally get Trump? Crash the economy.
Title: Re: Red Flags Are Suddenly Soaring in Markets
Post by: Frank Cannon on May 29, 2018, 03:21:26 pm: Quote from: rustynail on May 29, 2018, 03:15:27 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.
Title: Re: Red Flags Are Suddenly Soaring in Markets
Post by: ABX on May 29, 2018, 03:30:25 pm: Quote from: rustynail on May 29, 2018, 03:15:27 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.
Title: Re: Red Flags Are Suddenly Soaring in Markets
Post by: Oceander 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.
Title: Re: Red Flags Are Suddenly Soaring in Markets
Post by: Free Vulcan 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.
Title: Re: Red Flags Are Suddenly Soaring in Markets
Post by: kevindavis007 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.
Title: Re: Red Flags Are Suddenly Soaring in Markets
Post by: edpc on May 31, 2018, 04:15:44 pm: Quote from: rustynail on May 29, 2018, 03:15:27 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.