http://investmentresearchdynamics.com/the-markets-edge-closer-to-collapse-what-about-the-derivatives/
The massive, unprecedented level of Central Bank intervention in the
markets has terminated the purpose for having capital markets.
Currently the only goal of the Fed is to do what needs to be done in
order to prevent the markets from collapsing. This has been the mission
since 2008 – and, really, since 1987.
Currently there’s a
gargantuan tug of war going on between the hedge funds and the Fed. The
hedge funds are leveraged up on extremely overvalued stocks and bonds.
Most of them are about to become impaled on their OTC derivatives,
which have zero liquidity and function to “turbo-charge” the margin debt
extended to hedge funds by Wall Street. On the other side of the
tug-of-war rope is the Fed/ECB/BoE, which are working furiously to
prevent forced hedge fund selling from collapsing the markets.
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