~*~” JUGGLE AND ROLL AS THE BOND APOCALYPSE HITS, THE ADGILLITY OF MONKEYS NEEDED FOR THE SHARPE TURNS. The Bond Apocalypse Is Upon Us A New World Order Of Ever Rising Interest Rates Or Made Leverage Speculation And Decadence Are A Thing Of The Past, Is It Your Retirement Plan To Flip Your House To Some Greater Fool ‘FORGET ABOUT IT,’ Want To Lockup Your Neighbour For The Rest Of His Natural Life Because He Dared To Do Something In Private To Which You Object ‘FORGET ABOUT IT,’ Have Some Nerds To Send Some Troops To Some Oil Rich Nation You’ve Never Heard About Until Yesterday ‘FORGET ABOUT IT,’ In Fact Just About The Past 30 Years Of Dumb Luck And Declining Interest Rates In Which Even A Money In Which Even A Monkey Can Make A Thing Killing By Borrowing And Speculating It’s All Over You Can Just ‘FORGET ABOUT IT,’ STACY HERBERT. Stacy: MAX, Yes Well It Just Gets A Little More Expensive To Be Stupid, Cnbc: ‘Unprecedented’ $80 Billion Pulled From Bond Funds. A Record Amount Of Money Poured Out Of Extreme-Traded And Mutual Bond Funds In June, According To A Fresh Report By Trim Tabs, Nearly Double The Amount Pulled Out Of The Bond Funds At The Height Of The Financial Crisis In October 2008. Max: Yeah!! Bond Rates Are Going Up, It’s A Circular Move You Had 30 Years Of Rates Going Down, Now They Are Moving Up, So People Dumping Their Bonds Where Are They Putting That Money? Well We Saw The Rise In Oil Even Though We Saw A Commodity Sell Off So That Money’s Going To End Up Somewhere And Everybody’s Coming Out Of Bonds. Stacy: ERrr!! It’s Actually Worth Turning To This Chart Right Here That I Stole From KARL DENNING’s Site And I Felt Free To Steal It Because I Know Your Interviewing With Him In The Second Half And Is The 10 Year Treasury Yield Of Constant Maturity And You Can See From The 1980’s ,,, Basically Yields Have Been Declining For The Past 30 So Years Most People Will Only Have Knowledge Of Declining Rates Weather They’re Investor Or Just Living In The World Where They Can Always Borrow More Money And They Can Always Juggle The Debt Roll Over The Debt Constantly At A Ever Declining Rate, So You Could Always Make Whatever Stupid Misallocation Of Capital That You Want Too, Max: Yeah!! Juggling Debt They’re Trying To Eat While They Are Juggling Let Me Demonstrate Here, (MAX Try’s Juggling Three Apples And Having Quick Bites) So You Get some Apples You Can Juggle And So The Idea Is Can You Juggle And Eat The Apple While You Are Juggling, YOMP! YOMP! Not All That Successful But I Think You Get the Idea. Stacy: Oh!! Boy!! Well So TRIM TABS Also Say’s This Has Basically Wiped Out 73% Off The 109.6 Billion Dollars That Flowed Into Bond Funds In The First Few Months Of The Year So Remember As Ever Hit The Peak Bond We Also Saw A Massive Flood In From The Average Investor. Max: Right The Average Investor Finally Got Up Enough Courage To Roll Into The Bond Market At The Absolute Top, And Remember Also It’s Not Just The Individual Investors But Governments Around The World Through I Mean The Quantitative Easing (Q.E.) Are Invested In The Bond Of The Portfolio Or The Federal Reserve (FED) Corporations And Other Banks Are Going To Become Less And Less Valuable. Stacy: Well As TRIM TAB Said That This Outflow Bond And The 80 Billion Dollars Just In June And They Said Quote, cncb: Until Last Month, Investors Had Been Content To Shovel Huge Sums Into Bonds With Little Regard For Value, Confident That Endless Central Bank Liquidity Would Keep Prices At Ridiculous Levels. It Was Only A Few Weeks Ago That Junk Bond Yields Dipped Below 5 Percent For The First Time. Max: Well Think Of It Also You Know The BASEL ACCORD They’re Trying To Get Banks To Increase Their Reserves, Cause How Do You Classify The Reserve?, What Is The Collateral On The banks Sheet? What’s On This Bond? Bonds Are Artificially High By Q.E. And Cheap Interest Rates, Now Interest Rates Has Gone Higher, Bonds Are Going To Reduce In Value So This BASEL ACCORD (BASEL ACCORD To Be Intermediaries For Setting Minimum Regulations) Is Going To Try To Increase The Reserve Capital Of The Banks It’ Never Going To Happen It’s A Sham Because They’re Sailing In The Seas Of Rising Interest Rates Collateral In The Banks Is Now Going To Go Down Sharply Which Means ANOTHER MAJOR BANK FALIURE ON IT’S WAY!! BNP (BNP-PARIBAS Personal Finance) In FRANCE Like I’m Hearing Or SOCIETE GENERALE (SOCIETE GENERALE Leading Financial Services Group In EUROPE), STACY. stacy: Well The Other Problem Of Course Is That Quarterly Statements Are About To Go Out So TRIM TABS Has Warned, Cnbc: The Rush Out Of Bonds Could Be About To Get Even Worse, Accord To The Research Firm, Which Says That More Bond Investors Could Take Flight After Receiving Their Quarterly Statements In The Coming Weeks, Noticing That Their “SAFE” Bond Funds Are Delivering Losses Instead Of Gains. Max: Well This Is The Expensive Of Everyone Who Watches This Show, They Love What We Talk About But The Only Really Look At One Thing And That’s Their Monthly Or Quarterly Statements From Their Banker/Brokers As Long As That Number Is Something They’re Happy With, Then All Is Good, But Once They Open The Mail And They See Oh!! My God My Bonds Collapse Last Month Then They Panic Then They Watch Our Show More And They Realise They Should Have Been Looking At Us More. Stacy: Well As I Said It Was Easy To Look Brilliant For The Past 30 Years In Bonds If You Were Anybody You Could Look Brilliant,,, Any Monkey Could Do It, So One Off The Biggest Bond Firms In The World Celebrated Investor Is Of Course Is BILL GROSS Of PIMCO And There Of Course Needing Huge Redemptions In Their Funds. Nytimes: As Bond Market Tumbles, PIMCO Seeks To Reassure Investors. Stacy cont: For 30 Years BILL GROSS Has Been Seen As A Genius But Now 9.9 Billion Dollars Was Drawn From His PIMCO Total Return Fund In June That 8.5% Of All The Holdings. Max: Well It’s Not Going To Out Preform The Bond Market In The Face Of The BOND APOCALYPSE That’s just The Way It Go’s So For BILL GROSS You Say He’s Got A Bond Fund So Less He Go’s 100% Cash Or Moves Into Something Else He’s Going To Suffer The Ravages Of The Recessional Interest Rates And We Are Seeing Now On The Second Basis That We’ve Seen For Several Basis Which We Will See Now For 10 Years Now Or More. Stacy: Well It Appears From MORNINGSTAR (Morningstar.co,uk Data, News And Research On Shares And Funds) Data He Himself Was Smoking His Own Belly Button Lint, He Thought That He Can’t Do Wrong For 30 Years He’s Been Right And 90% Of PIMCO’s Assets Were In Bond Funds So The Analysts In This Article A Pretty Surprised That He’s All In Essentiality On One Asset. Max: Well He’s Front Running The FED And That’s Bee The Strategy That’s Worked, In Other Words The FED Tells BILL GROSS By The Way We’re Going To Be Buying Lots Of Bonds So He Buy Bonds Before The FED Dos. He Makes Money Front Running The FED, But He’s In The Position Now Where He’s His Fund Is So Big It’s Like Trying To Manoeuvre A Oil-Tanker It Can’t Be Done Quickly And With Agility Now Once You Put The Brakes On It Takes Miles And Miles For That Thing Comes To A Stop So He’s Going To Have A Difference Of A Opinion As To Where The Bonds Are Going But To Extricate Himself From Multi Hundreds Of Billions Of Trillions Of Dollars’ Worth Of Bonds It’s Not Something You Can Do Overnight So He’s Trapped Like The Some Of The Other People The ROACH MOTEL The FEDERAL RESERVE.”~*~ This Write Up Was Done By Blackhole Bridger. There Is Much More Information in This Mins 25:46 Secs Broadcast Your Hosts Are STACY HERBERT And MAX KEISER, MAX Also Talks To KARL DENNINGER About Bonds Q.E. (Quantitative Easing) Tapering. “Take My Word A Must Watch”. Get Into The Financial Know Just Click Below. youtu.be/hcIEAyC0nfw
Posted on: Sun, 07 Jul 2013 23:17:50 +0000
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