ND
MAR 23 20 SIT
EC y POL
ND denounce Global-neoliberal
debacle y propone State-Social + Capit-compet in Eco
ZERO HEDGE ECONOMICS
Neoliberal globalization is
over. Financiers know it, they documented with graphics
He aquí la visión de 1 empresario racional
sobre la debacle actual
"In 2006–2007, I talked about
the possibility of an imminent financial crisis, but at the same time I also
talked about the solution. The solution was that the Fed floods the system with
cash... Here, I don’t know if this is the solution."
... overnight Minerd published
another report to clients titled "The Great
Leverage Unwind", in which he warns that "funding and trading
markets are not functioning well due to excessive leverage needing to be
unwound in the financial system" and summarizes what lies ahead by saying
that "we will
likely experience something that is just as severe as, if not worse than, the
current financial crisis."
His full note
is below
The Great Leverage Unwind
We entered into the current
crisis with a whole financial system that had been incentivized by policymakers
to take on EXCESSIVE LEVELS OF DEBT AND LEVERAGE.
The turmoil we are seeing
right now is the result of the unwinding of this leverage. The primary catalyst of the turmoil is the collapse
in economic activity due to the COVID-19 shutdown, but the
fact that funding and trading markets are not functioning well is due to
excessive leverage needing to be unwound in the financial system.
See Chart:
Recession
= Housing bubble + Centrals Bankers bubble vs.US nominal GDP
The
first order of that unwind is what we have been seeing over the last week or
two, where hedge funds and mutual funds are in a mad dash to get to cash.
See Chart:
Consolidated
Equity position
In order to get a foundation under the markets, we’re going to need
something very large, something in the $2 trillion
range in the form of a pool of liquidity that can be made quickly available to
businesses and corporations that need it, along with the financing
facilities of $2 trillion–$4 trillion from the Fed. A structure like this will be much more efficient than a
targeted approach of trying to engineer bailouts industry by industry, which
would just take too long.
In addition to Troubled Asset
Relief Program (TARP)-like programs to assist companies and industries, there
is no other choice but for the Fed to step up to keep markets
functioning. That’s why
I’ve been saying that we would need to see about $4.5 trillion of quantitative
easing (QE) before everything was resolved.
That might sound like an alarmingly big number, but to put it in
perspective the Bank of Japan’s balance sheet is the
equivalent of 105 percent of GDP. So, the United States is a piker on QE.
BBB-rated corporate bonds,
which make up a majority of the investment,
at corporate universe. Many of these BBB-rated companies don’t pass the
criteria to be rated BBB by the rating agencies. asset coverage, and
accepting promises that these companies will de-lever. Kraft-Heinz
is a good example of what happens when the rating agencies, confronted
with the fact that Kraft-Heinz wasn’t making the
progress it promised, downgraded the company to BB.
See Chart:
Market
cap of Bloomberg Barclays Corporate Indexes
There are approximately $1
trillion worth of investment-grade corporate bonds that are in danger of being
downgraded like Kraft-Heinz. Currently, the high-yield market has approximately
$1 trillion outstanding, meaning the size of these possible downgrades would double
its size. I
do not believe that the current concessions on high yield in terms of their
spread to Treasurys or absolute yields is sufficient to clear that supply.
This reluctance to capitulate
is not an uncommon phenomenon. A lot of investors hang on to positions and
hope. Occasionally a blind squirrel will arrive and buy at a non-market price,
but as the supply of CLO assets that need to be sold continues to increase, the
prices are slowly (or rapidly) going to start coming down.
Many sellers today are what I call securitization
tourists. These are the hedge funds, insurance companies, pension funds, and
others who, in their great search for yield over the last two to three years,
kept reaching for it in securitizations.
Aircraft securitizations, which
are secured by airplane leases from airlines, are in trouble.
Interestingly, aircraft
securitizations have not moved into the realm of pricing that would be
appropriate. Investors are offering securitizations at 85 or 90 cents on the
dollar, when many securitizations reasonably should be worth 50 or 65 cents on
the dollar, or maybe lower.
If there is a risk to what I’m saying, the risk
is that it will be worse, not better. I’m not betting on a global
depression, but I’m saying that for the first time in the post-war era we are
really getting too close for comfort.
In 2006–2007, I talked about the possibility of an
imminent financial crisis, but at the same time I also talked about the
solution. The solution was that the Fed floods the system with cash, the
government does a bunch of prop-up programs, and we come out of it. Here, I don’t know the solution. So, in all likelihood we will experience
something that is just as severe as, if not worse than, the current financial
crisis.
In the meantime, a lot of debt has to be unwound or
restructured. This will result in the Fed having to keep the liquidity spigots
open for a long time.
….
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After years of pain, the CMBX shorts finally won.
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US DOMESTIC POLITICS
Seudo democ duopolico in US is
obsolete; it’s full of frauds & corruption. Urge cambio
This is the collapse of
neoliberal Economics. The CV didn’t create Recession. It worsen
More
serious than the
first or second-order, effects are third-order
effects
Panicked people are emptying supermarket shelves and stockpiling toilet
paper. Hand sanitizer is impossible to find anywhere.
Is the impact of the fear
and hysteria greater than the risk of the virus itself?
Doug Casey: Yes, very much so.
- The virus itself is what we can call a first-order effect.
- The second-order effects - like the economy shutting down from hysteria - are actually much more serious.
- The third-order effects - new laws and state action - this have the longest-lasting consequences. We can talk about them in a minute.
So
what’s the worst-case scenario regarding this virus?
Nobody really knows because it
is a new virus.
More serious than the
first-order or second-order effects are third-order effects.
Governments all around the world are putting in onerous new laws and
regulations about travel, movement, and business. These things have to be paid
for, which means higher taxes. But that’s almost impossible in a collapsing
economy. So, not just the Americans—everybody is going
to print up boatloads of new money.
Continue reading at..
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https://www.zerohedge.com/s3/files/inline-images/8e3eb40c05ee3b4e9305fabd406dc4a0.png?itok=Mx7Or6Ki
====
Did you
ever think we’d reach the point in the United States where you had to have papers to freely travel from
one place to another? It appears we’re at the point...
====
We have plenty of human capital: strong backs and agile minds. They just have to
be reconditioned off their addictions to
canned entertainments, drugs, and the Faustian raptures of techno-narcissism...
I never subscribed to Marxism,
but old Karl sure had a point when
he said:
“All that
is solid melts into air, all that is holy is profaned, and man is at last compelled
to face with sober senses his real conditions of life, and his relations with
his kind.”
Is that exactly where we’re at, or what?
The hologram of capital
that was not really there dissolves before our eyes.
Now, under the shadow of COVID-19, everybody
has been sent home to wait and see what happens next, hostages to the
flat-screen, where the cable networks show little besides a non-stop real-time
horror movie called THE END OF YOUR FUTURE.
CONTINUE
READING but don’t panic nor be afraid.. is what they want from you to
then later manipulate your ‘lost of future’ with another pandemia worse even:
WW3
….
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We exited the eye of the hurricane and have seen our ship of state capsized, as
an immense wave of reality has
destroyed the delusions of millions and exposed the Fed as a
feckless fraud...
====
This is the collapse of
neoliberal Economics. The CV didn’t create Recession. It worsen
More
serious than the
first or second-order effects are the third-order effects
Panicked people are emptying supermarket shelves and stockpiling toilet
paper. Hand sanitizer is impossible to find anywhere.
Is the impact of the fear
and hysteria greater than the risk of the virus itself?
Doug Casey: Yes, very much so.
- The virus itself is what we can call a first-order effect.
- The second-order effects - like the economy shutting down from hysteria - are actually much more serious.
- The third-order effects - new laws and state action - this have the longest-lasting consequences. We can talk about them in a minute.
So what’s
the worst-case scenario regarding this virus?
Nobody really knows because it
is a new virus.
More serious than the
first-order or second-order effects are third-order effects.
Governments all around the world are putting in onerous new laws and regulations
about travel, movement, and business. These things have to be paid for, which
means higher taxes. But that’s almost impossible in a collapsing economy. So, not just the Americans—everybody is going to print up
boatloads of new money.
Continue reading at..
----
----
“My sense is we’re not making a whole lot of progress
today &
we’re back tomorrow.”
====
Did you
ever think we’d reach the point in the United States where you had to have papers to freely travel from
one place to another? It appears we’re at the point...
====
US-WORLD ISSUES (Geo Econ, Geo Pol & global Wars)
Global depression is on…China,
RU, Iran search for State socialis+K-, D rest in limbo
1.7 billion people - nearly 2/7th of
the Earth's population - have now been asked to stay home in more than 50
countries and territories due to the coronavirus outbreak...
====
"Stamping
the upper part of hands,
is essential and very useful to
reduce the spread."
====
GOLD is one of the motives for
WW3
“Crash conditions will likely inspire more and
more people to demand physical delivery on precious metals over the
course of 2020, as fears of paper
market shutdowns due to the pandemic grow.”
====
This collapse in broader CMBX indexes
as "the big short 2.0" gradually comes to fruition, has led to
spillover effects across the entire Commercial Mortgage-Backed space –CMBX-,
resulting in the first hung debt .
====
SPUTNIK
and RT SHOWS
GEO-POL n GEO-ECO ..Focus on neoliberal expansion via wars
& danger of WW3
- Coronavirus Vaccines Expected by 2021-2022 -
WH Official False flag. We
have it!
- ‘Bolsonaro
is Insane’: For Calling Coronavirus a
Media Trick He is totally right
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NOTICIAS
IN SPANISH
Lat Am search f alternatives to
neo-fascist regimes & terrorist imperial chaos
REBELION
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ALAI ORG
====
RT EN ESPAÑOL
Lo último
sobre la pandemia de coronavirus en el mundo
https://actualidad.rt.com/actualidad/347274-pandemia-coronavirus-ultimos-datos
Anuncian éxito
de primeras pruebas de la vacuna contra el coronavirus en Francia https://actualidad.rt.com/actualidad/347290-anunciar-exito-pruebas-vacuna-coronavirus-francia
Trump
prohíbe subir precios y acaparar
productos en medio de la pandemia CV https://actualidad.rt.com/actualidad/347322-trump-prohibir-aumentar-precios-acaparar-productos
Descubren
nuevos síntomas del CV que ayudarían a identificar 'portadores ocultos' https://actualidad.rt.com/actualidad/347214-revelan-nuevos-sintomas-covid-19
ONU llama a
un cese el fuego global para poder hacer frente al coronavirus https://actualidad.rt.com/video/347343-onu-llamar-cese-fuego-enfrentar-coronavirus
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COUNTER
PUNCH
Analysis on US Politics &
Geopolitics
Michael Hudson Debt Jubilee is the Only Way to Avoid a
Depression
Ben Debney The
Political Uses of Pandemic
Sam Pizzigati How
to Wage War, FDR-Style, on CV Pandemic
Julian Rose CV:
The Invention of a Disease Called Fear
Emanuel Pastreich The
Global Media and CV
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GLOBAL
RESEARCH
Geopolitics & Econ-Pol
crisis that leads to more business-wars from US-NATO allies
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DEMOCRACY
NOW
Amy Goodman’ team
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