An electronic run on the bank began last week in the junk bond market. It continues this morning. It will spread as selling begets selling. Has this been planned to allow Yellen to call off her rate increase on Wednesday or is it a result of speculators realizing the party is over and all heading for the exits at the same time? 1931 here we come.
The first Christmas tree in NYC was actually erected in 1931 in the worst year of the Great Depression when just about all the foreign sovereign bonds defaulted on Americans causing massive bank failures. The first tree was put up in hopes of raising the spirits of the people in their dark hour of need. It was not the stock market crash that devastated the finances of the people, it was the bond collapse. Andrew Mellon had first commented when bonds rallied and stocks fell in 1929, that this was why “Gentlemen prefer Bonds”. By 1931, those words demonstrated that even conservative men lost their shirts.
The American “You got CHUMPED!” party circa 1931….
And how is this any different than today?
We still have bread and soup lines… they’re just called EBT cards today and instead of getting in line to get your Free Shit, you get a card that lets you go to the store to get Free Shit…
Wrapping up a pile of dogshit like a Christmas present and putting a bow on it does not change the fact that it’s still dogshit…
Im thinking it will ultimately end, like Europe, in positive interest rates after this latest implosion.
Billy, I’m liking and agreeing with more & more of your posts. Are you back on your meds?