Stocks, Bonds & CRE Face QT
Fundamentals for markets have boiled down to QE or QT since 2009. Now there’s QT, a lot of QT, globally, to battle the worst inflation in decades. Support the show

Fundamentals for markets have boiled down to QE or QT since 2009. Now there’s QT, a lot of QT, globally, to battle the worst inflation in decades. Support the show
Most people in finance today cut their teeth in the era of Easy Money, when history books were thrown out the window. Support the show
The Fed ended Free Money, and the only thing it broke is the consensual hallucination that spawned during the Free Money era. And look what we got. Support the show
Some markets are already deep into it, others just started. A sobering trip from the free-money decade in la-la-land, back to normal. Support the show
Drunk with Easy Money, companies were hogging office space and workers for a future that did not come. Support the show
The Crazy Stuff and Crazy Asset Prices that arose during Easy Money started blowing up when Easy Money ended. Support the show
As the FTX collapse shows, the shenanigans guarantee smooth, efficient contagion inside the crypto zone. But beyond it? Support the show
Raging inflation knocked out the “Fed put,” and banks are no longer on the hook for mortgages; taxpayers and investors are. Support the show
Deficits don’t matter – until the bond vigilantes ride into town. Support the show
The Fed will tighten “Until Something Breaks” and then pivot? Wait a minute... Support the show
Higher interest rates and mortgage rates for much longer, with lower asset prices, as the Everything Bubble gets dismantled. Support the show
Biggest investors in single-family houses: “We need to be patient and allow the market to reset.” Support the show
One of the most important dictums in US finance is this: “Don’t fight the Fed.” And this could get ugly. Support the show
Shedding People, Offices, and Warehouses. It’s kind of sobering. Reality has that effect, after a drunken binge. Support the show
The USD had a heck of a ride, which kept inflation from spiking even further. But it may not last much longer. Support the show
That’s what’s different this time: Stuff is blowing up because of leverage, and the blow-ups cascade through the crypto space because everything is now interconnected. Those weren’t factors in prior “crypto winters.” Support the show
This crash beneath the surface showed something had broken, that the magic had died, that hype and hoopla were suddenly unable to carry the day. Support the show
But we’ve had it so good for so long. And it was so easy, and it made everyone look like a genius. Support the show
Dotcom Bust 2 has begun. Only bigger. Support the show
The dollar’s role as dominant global reserve currency is at risk if the Fed fails to crack down on inflation. Support the show
The mayhem that has totally crushed one stock after another for a year breaks through the surface. Support the show
Mega-policy decisions to boost demand. Now mega-consequences. Support the show
What’s left of the debt-fueled property speculation that drove growth is a huge explosive mess and an enormous amount of debt. Support the show
The property sector and its debts are possibly the biggest financial mess in China’s history. Support the show
China still hasn’t bailed out investors in the property developers, to the shock of foreign investors who’d bought their dollar bonds. Could the forced deleveraging trigger a financial crisis? Support the show
Enough consumers, flush with free money, suddenly eager to pay those high prices, particularly for big-ticket items they didn’t have to buy. Magic Mix. Support the show
The Fed will trim back its stimulus, but it’s already too late, and it’ll be too little and too slow. Support the show
The Fed. And then the Fed steps away. Support the show
This combo of massive QE, repressed interest rates, huge government stimulus with borrowed money, and raging inflation is new in recent history. Support the show
Get Used to Higher Inflation. My Thoughts on the Biggest Mess I’ve Seen in Decades. Support the show