From James Harkin (Webmaster & Editor of LindseyWilliams.net). Here is a summary of articles of interest from around the world for this week. Please LIKE the Lindsey Williams Online Facebook Page to see stories posted daily regarding the current state of the economy around the world.
Latest News From July 8, 2016 to July 14, 2016:
- Global Economy Critical Condition Code Blue-Rob Kirby
Macroeconomic analyst Rob Kirby says don’t trust the stock market’s rise to new all-time highs. The global economy is in terminal trouble, and Kirby explains, “My view of the financial system as it sits today is we are in an intensive care unit, and we have a lot of tubes and wires connected to us right now. The question you are asking me is how long is a person in critical condition in an intensive care unit going to live? I don’t really know the answer to it other than we could get a code blue any day. We could get a code blue tomorrow . . . code blue is when somebody has passed.”
- Gold has ‘unlimited upside' because the Fed is ‘confused' on policy: Trader
Gold just posted its longest weekly winning streak since July 2011, but if investors missed out on the recent rally, fear not. One trader says the commodity has “unlimited upside,” and investors have the Federal Reserve to thank for it. On CNBC's “Futures Now” this week, Tom Colvin said that gold will remain in a bull market that will only come to an end “when central banks take their hands out of the cookie jar.” The Federal Reserve is unlikely to hike rates in the foreseeable future, despite a blockbuster June employment report on Friday.
- Peter Schiff Warns of the “Worst Economic Downturn Including the Great Depression”
The Federal Reserve’s monetary policies have manufactured a “super bubble” that “…may give us the worst economic downturn including the Great Depression,” economist Peter Schiff declared during an interview with Accuracy in Media. Schiff is the CEO of Euro Pacific Capital, and a guest commentator on CNBC. He explained that low interest rates prop up the government’s feckless fiscal policies and generate “…really systemic structural problems in the economy…” that “manifest themselves in bubbles that then burst. …the Fed’s policy does not work and has not solved our problems, it has simply exacerbated our problems, and…we’re gonna have a currency crisis, we’re gonna have a sovereign debt crisis and it’ll make the financial crisis of ’08 really look like the Sunday school picnic,” he said.
- “The World Is Walking From Crisis To Crisis” – Why BofA Sees $1,500 Gold And $30 Silver
With both stocks and US Treasury prices at all time highs the market is sensing that something has to give, and that something may just be more QE, which likely explains the move higher in gold to coincide with both risk and risk-haven assets. As of moments ago, gold rose above $1,370, and was back to levels not seen since 2014. Curiously, the move higher is taking place after Friday's “stellar” jobs report, suggesting that someone does not believe the seasonally-adjusted numbers goalseeked by the BLS. And while we reported last week that one way investors are rushing into the anti-QE safety of gold is by buying paper gold derivatves such as ETFs, which rose above 2,000 tons for the first time since 2013, many others have bypassed paper claims on gold such as GLD entirely, and are rushing into physical.
- 2016: The Big Shift
As we close 2015 and begin a new year, the markets generally closed flat to neutral with a warning that as we approach the political year from hell (2017) that this is by no means going to be a walk through the park. We are more likely than not going to see some trends conclude in 2016 and others perform a false move to scare the hell out of everyone. Nevertheless, the stars may not be aligning, but the markets appear to be setting the stage to align for the BIG SHIFT. What does the BIG SHIFT mean? It means that as we face a meltdown in socialism, which has taken hold of western governments and destroyed our underlying democratic foundations, ALL assets must prepare for the HEDGE against government.
- The Federal Reserve's Grand Scheme Exposed (In 1 Simple Chart)
For 138 years, consumer prices in America slightly declined. After The Federal Reserve was created, things changed… The ascent of the non-1% peaked when the Deep State forced Nixon to depart from the gold standard's constraint on largesse. Which should also clarify just why to the “1%”, including their protectors in the “developed market” central banking system, their tenured economist lackeys, their purchased politicians and their captured media outlets, the topic of a return to a gold standard is the biggest threat conceivable.
- Pension horror – as retirees get an eighth of what was predicted
Pension savers, who opened with-profits policies in the 1990s, could receive a fraction of the cash they were told they'd get when they started saving. A report has revealed that some people who would told they could expect around £29,000 a year in retirement could in fact get just £3,774. Money Mail has published the figures, which have been caused by two crushing forces: with-profits disasters, and annuity pain.
- S&P 500 near record highs? Treasury yields at lows? Something’s gotta give
It’s a tug of war between stocks and bonds, at least, it feels that way. The S&P 500 were on pace to surpass a record closing high of 2,130.82 on Monday as Treasury yields held at record lows. The sharp swing higher for stocks was sparked by a June jobs report that showed that the U.S. created 287,000 new jobs in June, quelling some of the nagging fears that the labor market was beginning to sputter after the May report showed a measly 38,000 jobs (later cut to 11,000) were added.
- Obama Pretty Much Shuts Down Offshore Drilling In Alaska
The Obama administration announced new safety regulations Thursday that would place extremely strict limits on offshore drilling for oil and natural gas off the coast of Alaska. The New York Times reported the regulations, finalized by the Department of the Interior, are seen as intended to reduce investment and harm energy production in the region. The New York Times stated that the rules are “the latest in a series of Obama administration rules designed to slow the extraction of fossil fuels from American public lands and waters.”
- Lessons from the worst banking crisis in history
It’s ironic that some of the most honest words to come out of a politician’s mouth were, “When it becomes serious you have to lie.” That was a quote from Jean-Claude Juncker, former Prime Minister of Luxembourg and President of the European Commission (the EU’s executive branch) in 2011 when asked about Greece’s financial crisis. Greece was on the ropes and the entire system about to collapse, so, of course they lied. Then they lied about lying. This raises a very reliable rule of thumb to keep in mind during (and before) a banking crisis: don’t trust anyone in the establishment, especially a politician. It’s good advice these days.
- The U.S. Government Is Targeting Your Retirement Savings… Here’s What You Can Do
Even before the Obama Administration introduced the new myRA program last year, there were whispers that the U.S. government would “assume some risk” for U.S. retirement accounts. That makes for a nice sound bite, but it’s really code for forcing American savers to buy government bonds. Here’s how it works. There’s no minimum balance to open a myRA account. And the accounts don’t incur fees. However, your myRA can only invest in U.S. Treasuries, which probably won’t even come close to keeping up with the real rate of inflation. In other words, what myRAs really offer is “return-free risk.”
- Are You Planning Your Retirement? Forget About It. You Won’t Survive To Experience It.
The Israeli agents who comprise the Neoconservatives, a collection of war criminals that control US foreign policy, have already handed you your death certificate. The neoconservatives have far more power than they have intelligence or humanity. At the recent St. Petersburg International Economic Conference, President Putin excoriated Western Journalists for endlessly repeating Washington’s lies that are driving the world to nuclear war. He asked Washington’s bought-and-paid-for-whores, the scum who comprise the Western news media: “How do you not understand that the world is being pulled in an irreversible direction toward nuclear war?” Yes, indeed, how is it possible for the Western media to be totally blind? The answer to this question is that Americans live in the system of lies that comprise The Matrix, and media are paid to support the system of lies. The determining questions are: Can Americans escape their captivity in time to save life on earth? Do Americans have what it takes, or are Americans already a proven failed people who cower in ignorance under the threat of implausible “foreign threats”?
- A Drone Was Used to Blow up a US Citizen Without Trial Yesterday. Let That Sink In
The Dallas shootings have ushered in a very new world for U.S. citizens. For the very first time, a drone has been used on U.S. soil to kill an American without trial or charges.
The suspected shooter in yesterday’s tragic killings, U.S. Army veteran Micah Xavier Johnson, was, according to police and press reports, holed up in a parking garage and would not give himself up. After hours of what police claimed were fruitless negotiations with Johnson, a weaponized robot was sent to where he was hiding and blown up, taking Johnson with it.
- Massive Stockpile Means Oil Rebound Is Over
A massive global stockpile of oil could mean trouble ahead for the global crude market, according to Barclays. Crude oil prices dropped to a two month low on Thursday, after the Energy Information Administration reported a smaller-than-expected decrease in oil stockpiles. That may be a canary in the coalmine, a top energy market watcher explained. “For the last 6 quarters there’s been this discrepancy between global supply and global demand,” Michael Cohen, head of energy commodities research at Barclays, said last week on CNBC’s “Futures Now.”
- Japanese savers flood into gold fearing the endgame is close
For all the talk about the surging yen as the biggest threat to Japan’s embattled economy, the truth is that there is another soaring currency (and asset) that is far more troubling for Shinzo Abe. Gold. While in past decades, the natural instinct of Japanese savers when faced with financial uncertainty has been to rush into the “safety” of cash (after all why allocate funds to government bonds that yield almost, or less, than nothing) as we recently showed in Safes Sell Out In Japan and Demand For Big Bills Soars As Japan Stuffs Safes With 10,000-Yen Notes, now something has changed. That something is increasing loss of faith in Japan’s currency.
- Keep an Eye on the Dollar: It’s More Important than Ever. Global demand is the main concern right now
I have, on many occasions in the past in these pages, touched on the relationship between oil and the U.S. Dollar. The basics of that relationship are obvious: oil is priced in dollars on the global market, so from a logical perspective a strong dollar must put pressure on oil prices and vice versa. If the currency is worth more generally then anything priced in it is, relatively speaking, worth less…the price of that commodity goes down. This is not a tick for tick relationship, but over time and when broader trends emerge it generally holds true. That is reason enough for those who trade and invest in the energy sector to keep an eye on the dollar, but right now it may be even more important than ever.
- 2 Signs the government is planning to confiscate your retirement funds
We’ve warned that bankrupt governments will be eyeing the multi-trillions of dollars in “un-taxed” retirement funds when they get desperate enough. Total funds currently held in private IRA and 401K accounts in the US are estimated to be in the neighborhood of $10 trillion. As we dance on the brink of a massive collapse, the government’s already empty coffers will be even further decimated as the economy contracts massively and tax receipts plummet. In that moment, rather than reducing expenditures and doing massive layoffs and closures of departments, like any regular business would do, politicians will nationalize retirement funds for the “good of the country”.
- Black Hole of Negative Rates Is Dragging Down Yields Everywhere
The free fall in yields on developed-world government debt is dragging down rates on global bonds broadly, from sovereign debt in Taiwan and Lithuania to corporate bonds in the U.S., as investors fan out further in search of income. The ever-widening rush for yield could create problems if interest rates snap back, which would cause losses on investors’ low-yielding portfolios, or if credit quality falls. And the global yield grab is raising questions about whether rates can prove reliable economic indicators. Yields in the U.S., Europe and Japan have been plummeting as investors pile into government debt in the face of tepid growth, low inflation and high uncertainty, and as central banks cut rates into negative territory in many countries.
- Repeat Of 70s Pattern Shows That A $675 Silver Price Is Realistic
In my previous silver article, I highlighted a very bullish pattern/fractal on the 100-year silver chart. It was a very big picture view of silver, which is really difficult to perceive within our current reality. However, at some point in time, it will catch up with our current reality. This will likely happen when the monetary system collapses. Silver, even more than gold, is the opposite of what is considered a monetary asset (debt, like a federal reserve note), today. This is mainly because silver has been completely demonetized, whereas gold is still a part of the current system (think central banks gold reserves). When the illusion of money (value) is exposed for what it is (worthless paper or digits), then people will demand real money (value) like silver and gold.
- Everything we love to eat is a scam
Among the many things New Yorkers pride ourselves on is food: making it, selling it and consuming only the best, from single-slice pizza to four-star sushi. We have fish markets, Shake Shacks and, as of this year, 74 Michelin-starred restaurants. Yet most everything we eat is fraudulent. In his new book, “Real Food Fake Food,” author Larry Olmsted exposes the breadth of counterfeit foods we’re unknowingly eating. After reading it, you’ll want to be fed intravenously for the rest of your life.
- George Soros predicts riots, police state and civil war for America
Billionaire investor George Soros has a new prediction for America. While it might be as dire as it gets for the financial wiz, this bet concerns more than just the value of the buck. According to Soros, there’s about to be an all-out class war. Soros, who is 81, previously bet against the British pound in the early 90s and made $1 billion off its collapse. In the years since, he’s remained active in investing, but also in advocacy. He’s helped keep Wikipedia afloat thanks to impressive contributions and through donations to the Tides Center, has indirectly funded Adbusters, the Canadian anti-capitalist magazine that put Occupy Wall Street on the map. Speaking to Newsweek recently, Soros neglected to acknowledge his past successes, but instead offered a word of warning: a period of “evil” is coming to the western world.
- How to destroy America in eight easy steps
Just over eleven years ago, in June of 2005, an immigration overpopulation conference in Washington, DC, was held to review issues of immigration. It was filled to capacity by many of America ‘s finest minds and leaders. Dick Lamm as the former Governor of Colorado (D) gave an eye-opening speech. A brilliant college professor by the name of Victor Davis Hanson talked about his latest book, ‘Mexifornia,' explaining how immigration – both legal and illegal was destroying the entire state of California. He said it would march across the country until it destroyed all vestiges of The American Dream. Moments later, former Colorado Governor Richard D. Lamm stood up and gave a stunning speech on how to destroy America. The audience sat spellbound as he described eight methods for the destruction of the United States.
- WTF Chart Of The Day – Factory Orders Collapse To Longest Streak In US History
For the 19th month in a row, US Factory Orders decline YoY (-1.2% for May) with a 1% drop MoM. Simply put, in 60 years of historical data, the US economy has never, ever suffered a 19 month stretch of consecutive annual declines. And yet we are supposed to believe there is no recession?
- AG Lynch Announces Global Police Force Partnership With UN
During her speech at the United Nations, Attorney General Loretta Lynch announced that the Department of Justice is launching a global police force in order to combat “violent extremism” in the United States. A proposal such as this, with all of its various implications of an overreach of power, should be front-page news everywhere, but unfortunately, not many noticed. And that’s a concern to constitutional attorney KrisAnne Hall who released a video to make the rallying call.
- G20 trade ministers discuss protectionism, global recovery in Shanghai
Chinese Commerce Minister Gao Hucheng has welcomed the adoption of the G20 trade growth strategy on Sunday. Trade Ministers from the group of 20 nations wrapped up a two-day meeting in Shanghai on Sunday. “This meeting was held in a positive atmosphere, expected results were achieved, and it was a complete success. The meeting became a good training ground at the trade and economic front for the G20 summit which will be held in September this year,” Gao told reporters.
- Alan “Bubbles” Greenspan Returns to Gold. After a misbegotten credit bubble and $60 trillion more of debt.
Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. […] The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit — Alan Greenspan, 1966. That old rascal! Before joining the feds, former Fed chief Alan “Bubbles” Greenspan was a strong proponent of gold and the gold standard. He wrote clearly and forcefully about how it was necessary to restrain the Deep State and protect individual freedom. Then he went to Washington and faced a fork in the tongue. In one direction, lay honesty and integrity. In the other, lay power and glory.
- DANGER: The World Is Now On The Verge Of The Largest Destruction Of Wealth In History
With the price of gold and silver surging once again, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned King World News that we are now on the verge of the largest destruction of wealth the world has ever seen. Egon von Greyerz: “Investors worldwide have never faced risk of the magnitude that the world is now exposed to. But sadly, very few are aware of this unprecedented risk. For the ones who understand risk and take the right decisions, it will “lead to fortune.” Only very few will choose that route. Instead, most investors will continue to live in the hope that current trends will go on forever, but sadly these people will end up “in shallows and in miseries.”…
- May trade deficit jumps 10% as U.S. consumers snap up more imports
Stronger demand for imports such as cell phones, sneakers and home furnishings boost the U.S. trade deficit by 10% in May, but the rebound in consumer demand suggests the economy regained momentum after a slow start to the year. The nation’s trade gap climbed $41.1 billion — a three-month high — from a revised $37.4 billion in April, the government said Wednesday. Economists polled by MarketWatch had expected the trade gap of $40.2 billion.
- War On The Streets Of America: Protesters Attack Police Officers In Major Cities All Over The Nation
This is what a nation looks like when it starts melting down from within. A series of very disturbing incidents of police brutality against young black males has caused a firestorm to erupt all across the country. You would have thought that the massacre of police in Dallas would have caused everyone to step back and reflect on what is really causing this cycle of violence, but instead the nationwide protests have gotten even bigger and more intense. Over the weekend, protesters attacked police with rocks, bricks, bottles, fireworks, chunks of concrete, Molotov cocktails and rebar from a construction site. In return, police fired pepper spray, smoke bombs and tear gas at protesters. As I write this, more than 200 protesters have been arrested over the weekend so far, and authorities are bracing for what the coming night will bring.
- Debt Is Dragging Down American Consumers
In May, we reported on the rising level of credit card debt in the US after the Wall Street Journal reported that credit card balances are on track to hit $1 trillion this year. Now we have evidence it might be even bleaker. A study released in June by CardHub reveals US consumers did worse than expected in the first quarter of 2016. And the study confirms that at this pace, by year-end, Americans will have accumulated more than $1 trillion in credit card debt. According to the study, Americans paid off $26.8 billion in credit card charges through the first quarter. That represents just 38% of the $71 billion in debt added during 2015. It was the smallest Q1 debt reduction since 2008, falling almost 25% below the post-recession average.
- The Dallas Massacre: This Is The Kind Of Civil Unrest That I Have Been Warning Is Coming To America
Today is a day to mourn and pray for America. In Dallas, Texas last night, a hate-filled gunman ruthlessly started gunning down police officers. A total of 12 officers were shot, and five of them are now dead. If we do not learn to love one another, there is no hope for us as a nation. Unfortunately, the love of most people has grown cold, and today messages of hate and division from people on all sides of the debate are being posted all over social media. The massacre in Dallas represented the deadliest day for law enforcement officers in the United States since 9/11, and this is the kind of civil unrest that I have been repeatedly warning is coming to America. I have warned about this in my books, on radio and on television. But of course I am best known for my articles, and the following are just a handful where I warned about what we would soon see…
- The EU is breaking up politically and financially
When David Cameron decided to let the British people vote on Brexit, he did not realise that he would open a real can of worms. Before the referendum I declared that Brexit would not be the reason for a collapse of the world economy but that it could be the catalyst for such a collapse. We have only seen a few days’ reaction with heavy intervention from central banks around the world but judging by the massive volatility we have seen so far, there is now a very high likelihood that a major secular decline in the world economy will now start to unravel. The next few weeks and months are likely to be a lot worse than the 2007-9 crisis.
- Separate Laws for Political Nobility & Economic Elite-Gerald Celente
Trends researcher Gerald Celente says Hillary Clinton not being charged by the FBI for having a private unprotected email server is just a small part of an ongoing major trend. Celente explains, “It’s bigger than Clinton. It’s a trend, and anybody can see it if they open their minds and add up the facts. What we have now is a neo-feudal society. It’s all connected. It’s, as we call it, ‘global-nomic.’ Since Obama became President, and these are the facts, 95% of the wealth since 2009 has gone to the 1%. Now, let’s take a trip around the world. 62 people have more dough than half of the world’s population combined. In the United States, 400 people are worth $2.5 trillion. What I am saying is the word ‘justice’ is being misspelled. It’s J U S T U S—Just Us. . . . You have separate laws for the political nobility and the economic elite.”
- Americans And Canadians Face Silver Shortages As The Investment Deficit Surges
Americans and Canadians will likely face silver shortages in the future as investment demand continues to surge higher. This will come at time as the silver price skyrockets, thus making it even harder for investors to acquire physical metal. The U.S. and Royal Canadian Mints produce most of the Official Silver coins in the world. In 2015, the combined total of Silver Eagles and Maples sales equaled 81.3 million ounces (Moz).
- The Bears Are Back – Oil Slides On Negative Sentiment
After oil prices rallied more than 80 percent between February and June, WTI and Brent have fallen back more recently, dropping from above $50 to just $45 per barrel. Oil traders are searching for more clarity on what to expect next, but the cacophony of data pointing in different directions is leading to confusion for analysts and speculators. On the bullish side for oil prices is Citigroup, which published a research note on Monday saying that it is “especially bullish” on commodities in 2017. Citi says that the oil markets continue to balance, and the concerns over global economic growth are not as important as the demand trajectory. Moreover, the crash in oil prices has forced the industry to make cuts that will only sow the seeds of the next boom. “The oil market is treading water for now, but the oil price overshot to the downside earlier this year and this is clearly setting the stage for a bullish end to the decade,” Citi analysts, led by Ed Morse, said.
- Jubilee Jolt: Pre-Planned and Leaked ‘Summer of Chaos' Begins in Dallas
It was only two days ago that we focused on the Black Lives Matter (BLM) leaked documents showing they were planning, in concert with the Obama Regime, a “Summer of Chaos.” Two days later, on 7/7 (the magic number 7!), the opening shots were fired in Dallas, Texas. Just as we predicted. During an evening rally of Black Lives Matter to protest two deadly police shootings, a sniper or snipers took aim from rooftops and killed or wounded numerous government law enforcers. Following all the trappings of past false flag attacks, the supposed sniper was killed… blown up in fact… before we could gain any information from him. But, as we said earlier, two top Black Lives Matter activists had their email and Twitter accounts hacked last month and it showed their plans, in concert with US Attorney General, Loretta Lynch, to cause massive riots and unrest in what they termed the “Summer of Chaos.”
- Global Investment to Plunge, Trade to Languish, on “Depressed” Demand: G-20 Trade Ministers
Facing “depressed market demand” and plunging global cross-border investment, the trade ministers of the G-20 countries along with folks from the IMF, the Organization for Economic Cooperation and Development, and the World Trade Organization, among others, met in Shanghai this weekend to hash out a plan. As at all these meetings, they reached an agreement, of sorts. The G-20 countries account for about 85% of global trade and 70% of global investment, so they matter.
- The Anatomy of a False Flag Event
This are article examines three critical aspects of a false flag event and then applies what is known, and typical of a false flag event to the murder of five Dallas police officers earlier in the week. By the way, the above picture strongly suggests that there is a lot more to the official narrative than the public is being told. The three areas of concern are: Rehearsal of certain aspects of the event by either First Responser, LEO, or both. If the false flag event consists of an assassination(s), the narrative includes acting alone, the “discovery” of a diary or a mainfesto which states the murderous intentions of the “patsy”, and the labeling of the so-called perpetrator as being insane so the act can be referred to as a random act of insane violence so the subject of a conspiracy never enters the discussion by the media and the authorities investigating the crime. Disguise the purpose of the event.
- Fear, Loathing & Record Money-Making in Government Bonds
US Treasuries set new records on Friday: The 10-year note rose to a new high, with the yield dropping to a new low of 1.366%. The 30-year Treasury bond also hit a new high, with the yield dropping to 2.11%, a record low. If 2.11% sounds like a miserably low return for tying up your money for three decades of hell and high water, it’s practically bond nirvana for whatever else is out there.
- Andy Hoffman: The End Game has Arrived – Protect Yourself, and Do It Now!
Andy is short for words. This is the latest produced through SilverFarm, the best source for podcast and on-the-go info you seek. Give Andy a good listen as he provides us with his take on unfolding economic collapse. As most of you know our economy is in serious trouble. We should all take time each day to focus on our personal economy and think of improvements that could be made. Small changes in ones personal economic habits make a huge difference at the end of the day, week, month and year.
- Bernanke’s Black Helicopters
Ben Bernanke is one of the most dangerous men walking the planet. In this age of central bank domination of economic life he is surely the pied piper of monetary ruin. At least since 2002 he has been talking about “helicopter money” as if a notion which is pure economic quackery actually had some legitimate basis. But strip away the pseudo scientific jargon, and it amounts to monetization of the public debt—–the very oldest form of something for nothing economics. Back then, of course, Ben’s jabbering about helicopter money was taken to be some sort of theoretical metaphor about the ultimate powers of central bankers, and especially their ability to forestall the boogey-man of “deflation”.
- Is The BIS Setting Up The World For Another Meltdown?
On the heels of another wild trading week, is the Bank for International Settlements (BIS) setting up the world for another meltdown? Stephen Leeb: “In 2013, the Bank of International Settlements (BIS), one of the most powerful institutions you may never have heard of – blew it. It snubbed gold. I’ll explain how in a moment – contributing to gold sinking from $1,800 an ounce in October 2012 to below $1,200 by the end of June 2013, a massive 35 percent plunge in a mere eight months. The downtrend continued until the end of last year when gold briefly traded below $1,050…
- The ECB’s Bank Stress Test Shows Fatal Errors
The United States have learned from their bad experiences during the Global Financial Crisis wherein almost its entire financial system was going down in flames. Stress tests to find out how banks would be able to deal with economic adverse scenarios became mandatory, and the European Union followed suit with its stress tests in 2011, followed by a series of check-ups later on. Almost a decade has passed since the GFC, and half a decade since the European stress tests, but the volatility and unrest in the financial world has never been this high. You would think that five years of ECB-supported lending would have helped these banks (as even though the net interest spreads did decrease, the access to the ultra-cheap lending facilities of the ECB allowed the banks to continue to generate positive results), nothing has changed, and more than 5 years after the term ‘PIIGS’ became one of the most well-known words to describe the economic mess in the weaker European, one of the I’s is now once again in serious economic trouble.
- Deutsche Bank's Chief Economist Calls For €150 Billion Bailout Of European Banks
The cards have been tipped, and it appears Italy's Prime Minister may have been right. In the aftermath of Brexit, much of the investing public's attention has turned to Italian banks which are in desperate need of a bailout as a result of €360 billion in bad loans growing worse by the day (and not a bail-in, as European regulations mandate, as that would lead to an immediate bank run) to avoid a freeze and/or collapse of Italy's banking sector. This has pushed stock prices – and default risk – on Italian banks to record levels. So far Italy's bailout requests have mostly fallen on deaf ears, as Germany's political leaders have resisted Renzi's recurring pleas for a taxpayer funded rescue. However, as we have alleged, and as the Italian Prime Minister admitted last week, the core risk for Europe is not just the Italian banking sector but the biggest bank of all in Europe: Deutsche Bank.
- Charting The Epic Collapse Of The World’s Most Systemically Dangerous Bank
Now the REAL question: what happens to Deutsche Bank’s derivative book, which has a notional value of €52 trillion, if the bank is insolvent? It’s been almost 10 years in the making, but the fate of one of Europe’s most important financial institutions appears to be sealed. After a hard-hitting sequence of scandals, poor decisions, and unfortunate events,Visual Capitalist’s Jeff Desjardins notes that Frankfurt-based Deutsche Bank shares are now down -48% on the year to $12.60, which is a record-setting low. Even more stunning is the long-term view of the German institution’s downward spiral. With a modest $15.8 billion in market capitalization, shares of the 147-year-old company now trade for a paltry 8% of its peak price in May 2007.
- DEAD PULSE: The Morgue is the Next Stop For the Financial System – Jim Willie
The Gold price will find its true value and price over $10,000 per ounce. The Silver price will find its true value and price over $300 per ounce. In reaching these levels, the ratio will return to the 30-1 range. The ruling bankers realize no remedy is possible. They are just trying to steal as many assets and accumulate as much gold as possible before the main bust event.
- They Know It’s Coming: Insurance Company Risk Experts Have Started Hoarding Physical Gold and Cash Ahead Of Crisis
How do you know when the world’s economic, financial and monetary systems are in trouble? Answer: When re-insurance companies, whose sole purpose is to insure other insurance companies, start to panic into gold and begin hoarding cash it’s probably a reliable signal that things aren’t going as well as our central bankers’ best laid plans imply. That’s exactly what’s happening right now: A real paradigm shift is taking place in the markets… Even one of the world’s second largest re-insurers is now buying physical gold… They’re even adding physical cash… This is the insurance industry’s insurance company… They are the risk experts and they now are buying physical gold bullion and storing physical cash… The importance of this move is possibly the most significant flow of capital that you will see in your lifetime…
- The Great Market Tide Has Now Shifted
In the conventional investment perspective, risk-on assets (i.e. investments with higher risks and higher potential returns) such as stocks are on a see-saw with risk-off assets (investments with lower returns and lower risk, such as Treasury bonds). When risk appetites are high, institutional managers and speculators move money into stocks and high-yield junk bonds, and move money out of safe-haven assets such as gold and U.S. Treasuries. But recently, markets are no longer following this convention. Safe haven assets such as precious metals and Treasuries are soaring at the same time that stock markets bounced strongly off the post-Brexit lows. Risk-on assets (stocks) rising at the same time as safe-haven assets is akin to dogs marrying cats and living happily ever after.
- IMF says EU on brink of collapse and ‘untenable' Euro may have to be SCRAPPED
THE FUTURE of euro currency and the entire EU project looks unsustainable without major change, according to a damning review by the International Monetary Fund and renowned economists. IMF chiefs warned the UK’s decision to leave the EU would seriously hamper growth prospects in the region. Before the Brexit vote, the IMF forecast a 1.7 per cent expansion for the eurozone. However, post Brexit the organisation revised that down to 1.6 per cent this year and 1.4 per cent next year.
- Markets are showing one of the same signs they did in 2007
We may still be in a bull market, but it really doesn't feel like one. And at least one indicator suggests we could be heading for a slide. Since the beginning of this year, the S&P 500 (.SPX) is being driven by sectors traditionally considered to be safe investments, such as utilities (.5SP5510), telecom (.5SP5010) and consumer staples (.5SP30). The stock index is hovering less than a percent off its own 52-week high as of Friday morning. Generally, when the broader market is lifted by these “defensive” sectors, it means investors are looking for safe havens where they can weather a future storm. That could be a precursor to an economic slowdown. In fact, one of the last times we saw defensive sectors outperform riskier ones was in 2007, just before the onset of the financial crisis.
- Financial Analyst Warns: “Millions Will Die” When Financial System Collapses
Trillions of dollars of currency are being moved or rushing towards the debt market that is squeezing bond yields to historic lows. We are making history in the United States for the second week in a row, and I am talking about the bond market. Both gold and silver, since the beginning of this year, have taken off like rockets, and they are not going to stop. This environment is on the edge…
- U.S. Economy Improving: How When 70% of Americans Don’t Have $1,000?
Truth be told, there isn’t any economic growth in the U.S. economy and that’s because the average American is struggling to the extreme. In fact, according to a poll done by the Associated Press-NORC Center for Public Affairs, about 70% of Americans would have trouble coming up with $1,000 to cover an emergency! In the same survey, 46% of Americans said their wages have remained stagnant in the past five years, while 16% said their salaries have actually seen cuts.
- Rickards: $10,000 – $50,000 Gold!
“People around the world are losing confidence in central bank money,” Jim Rickards said in a recent interview. “When you lose confidence in central bank money, you look for other forms of money and gold is the best.” Despite all of our talk about cryptocurrencies over the past couple of weeks, we must point out, one more time, that investing in the cryptosphere — even Bitcoin — is a gamble. Yes, they are exciting. And, yes, some of them will be immensely disruptive. But there are a number of things that, in our shaky global environment, works against them. If the lights go out, for example, your stash of Bitcoin, Siacoin and Synereo aren’t going to get you very far.
- How Gold Bears End——Eerie 1974-1976 Pattern Repetition Revisited
Gold Continues to Mimic the 1970s. Ask and ye shall receive… we promised we would update the comparison chart we last showed in late November in an article that kind of insinuated that it might be a good time to buy gold and gold stocks (see: “Gold and Gold Stocks – It Gets Even More Interesting” for the details). We are hereby delivering on that promise. It is actually interesting to revisit both past articles speculating about a potential gold bottom that turned out to be correct (those would be the many articles we penned on the topic from August 2015 onward) as well as those that turned out to be incorrect (which would e.g. include a number of articles written in late 2014. Although they managed to catch a playable rally in timely fashion, it ultimately turned out to be a bear market rally).
- No Charges for Clinton Proves Two Tier Legal System, Global Crash is Certain, Buy Gold and Silver
You’ve heard by now, Democratic presumptive nominee Hillary Clinton will not be charged over her unprotected email servers she used while at the State Department. Even though FBI Director James Comey pointed out multiple lies Ms. Clinton told, he decided not to recommend charges and said he “could not prove intent.” He also explained his decision to Congress this week but would not comment when asked about other investigations into the Clinton Foundation. Comey revealed that he did not personally interview Ms. Clinton last Saturday or even attend the deposition. He also revealed that Clinton did not testify under oath. Democrats in the hearing said Republicans were grilling Comey just to score points against their presidential candidate. Now, leaders in the House of Representatives are preparing a recommendation to the FBI to look into allegations Clinton lied to Congress in the Benghazi hearings.
- Gerald Celente – The Last Great Opportunity To Buy Gold & Silver
Today top trends forecaster Gerald Celente spoke with King World News about the action in gold and silver and what KWN readers around the world should expect next. Gerald Celente: “$10.7 trillion of negative yields — that is what is driving the gold market, along with the turmoil in the currency markets. The British pound just plunged over 20 percent in a matter of days. So these are the catalysts for the bid in the gold market…
- This is what gold's top tipster is saying about prices
Gold’s top forecaster, who in February abandoned her bearish outlook to correctly call bullion’s surge, sees more gains in store before prices taper off by year-end. The metal will climb to $1,425 an ounce by the end of September, 4.4% higher than now, before dipping in the following six months amid prospects for higher U.S. interest rates, said Georgette Boele, a currency and commodity analyst at ABN Amro Bank NV. The 43-year old was rated by Bloomberg as the most accurate forecaster. Boele has been right on the way up and also the way down. At the start of 2013, she was among the most bearish analysts before gold capped its first annual drop in 13 years. She called for lower prices until just a few months after bullion touched a five-year low in December. With Brexit-related concerns over the global economy’s strength and U.S. interest rates not expected to rise anytime soon, gold’s now near a two-year high.
- Gold & Silver To Be Last Currencies Standing – Peter Boockvar
The pervasive bullish sentiment towards gold continues as prices maintain solid gains and has one Wall Streeter saying the secular bull market is back in full force. “After rallying for 12 straight years and peaking in September 2011 at around $1,900 per troy ounce, gold fell into a very lengthy bear market that I believe ended in December 2015 at $1,050,” said Peter Boockvar, the chief market analyst for the Lindsey Group, in a CNBC post Thursday.
- Privately Minted Silver Coins Were Legitimate Money in the 1800s
In the early 1830s, an eastern Kentucky man named Josiah Sprinkle started minting his own coins and circulating them around the area. Eventually, government officials got wind of Sprinkle’s operation and arrested him. But he was ultimately found not-guilty in court. How did a man minting his own coins escape the long arm of the law? Because his coins were pure silver. They were equal in value to the silver dollars minted by the US government. In fact, they were worth slightly more.
- U.S. GMO food labeling bill passes Senate
The U.S. Senate on Thursday approved legislation that would for the first time require food to carry labels listing genetically-modified ingredients, which labeling supporters say could create loopholes for some U.S. crops. The Senate voted 63-30 for the bill that would display GMO contents with words, pictures or a bar code that can be scanned with smartphones. The U.S. Agriculture Department (USDA) would decide which ingredients would be considered genetically modified. The measure now goes to the House of Representatives, where it is expected to pass.
- Signs the Government is Planning to Confiscate Your Retirement Funds
We’ve warned that bankrupt governments will be eyeing the multi-trillions of dollars in “un-taxed” retirement funds when they get desperate enough. It is an incredibly common occurrence. It has happened in numerous countries in just recent memory. Poland, Hungary and Bolivia are a few in the last years where retirement funds have been seized. Total funds currently held in private IRA and 401K accounts in the US are estimated to be in the neighborhood of $10 trillion. That number looks awfully enticing to the US government which is currently indebted to the tune of $19 trillion and holding liabilities of over $100 trillion. As we dance on the brink of a massive collapse, the government’s already empty coffers will be even further decimated as the economy contracts massively and tax receipts plummet.
- Fear factor behind property fund withdrawals, say experts
The fear factor is causing investors to withdraw money from commercial property funds, according to one of the City's senior fund managers. Philip Nell, a fund director at Hermes, said there had been “a massive over-reaction to what's been going on over the last two weeks”. Mr Nell used to run the Aviva property fund that closed its doors along with five other funds this week. Henderson, Canada Life and Threadneedle became the latest on Wednesday.
- IMF Sees Pakistan’s Currency Overvalued as Loan Program Near End
Pakistan’s currency is overvalued by as much as 20 percent and is contributing to the country’s declining exports, along with low commodity prices, power outages and security concerns, according to the International Monetary Fund. A December study from the Washington-based lender found the exchange rate was “broadly” overvalued by 5 percent to 20 percent, Harald Finger, the IMF’s mission chief for Pakistan, said in a Tuesday phone interview from Washington. “More or less that’s still our assessment.” The rupee and Pakistan’s stocks have been among Asia’s best performers since 2013, when Prime Minister Nawaz Sharif — who’s in London recovering from open-heart surgery — took a $6.6 billion loan from the IMF to avert a balance-of-payments crisis. Finance Minister Ishaq Dar reiterated last month that Pakistan doesn’t need another IMF program with the current one due to finish at the end of September.
- Populist Politicians Take On Italy’s Massive Debt Pile
The Rome Olympics of 1960 marked the rebound of the Italian capital after years of war and reconstruction, an affirmation of the country’s renaissance and the city’s emergence as a symbol of dolce vita insouciance. Rome is still paying the bill, and the new mayor, Virginia Raggi, is sick of it. The city has roughly €13.6 billion ($15.2 billion) in debt and more than 12,000 creditors—though the pile is so complex no one really knows how much is owed to whom. Rome faces outstanding bills for operating its 61-year-old metro system, hauling trash, and running a network of unprofitable pharmacies that compete with private shops. The courts are grappling with hundreds of lawsuits over unpaid debts going back 50 years for land expropriated to build hospitals, streets, and other city projects—including some debts connected to the 1960 games, former Mayor Ignazio Marino has said. The average interest rate: 5 percent, at a time when the Italian government is issuing 10-year bonds at 1.5 percent annually. “We can’t keep paying such high interest just because nobody bothered to renegotiate the debt,” Raggi, who was elected on June 19, told the RAI television network.
- Gross Calls Sovereign Bonds Too Risky With U.S. Yields Near Lows
Bill Gross said sovereign bond yields at record lows aren’t worth the risk. “The sovereign bonds are not up my alley,” Gross, who built the world’s biggest bond fund at Pacific Investment Management Co. and is now at Denver-based Janus Capital Group Inc., said on Bloomberg Television Wednesday. “It’s too risky.” Low yields mean bonds are especially vulnerable because a small increase can bring a large decline in price, he said. Yields in the U.S., the U.K. and Australia pushed to all-time lows Wednesday, while those in Germany and Japan dropped to unprecedented levels below zero. The average yield on the bonds in Bank of America Corp.’s World Sovereign Bond Index this week dropped below 1 percent for the first time, based on data going back to 2006, while almost $10 trillion of securities in the Bloomberg Global Developed Sovereign Bond Index yield less than zero.
- What a difference in two weeks! Project Fear mastermind Osborne joins US banking giants to insist City will continue to THRIVE following historic Brexit vote
George Osborne and the Wall Street banking giants which helped bankroll the Remain campaign yesterday issued a resounding vote of confidence in the City of London. In a joint statement with the Chancellor, investment banks including Goldman Sachs, Morgan Stanley and JP Morgan pledged to ensure the City of London remains the world’s dominant financial centre when it leaves the EU. The firms said that while Brexit ‘clearly presents economic challenges’, they would strive to ensure Britain ‘remains one of the most attractive places in the world to do business’.
- Britain readies for showdown with Putin as it stations troops throughout Eastern Europe
HUNDREDS of British troops are set to be scrambled to countries bordering Russia as a show of strength to Vladimir Putin. David Cameron will announce the deployment of a 500-strong battalion to Estonia with a further company of 150 troops to be stationed in Poland “on an enduring basis”. The move comes amid continuing concerns from the Western alliance regarding the intentions of Vladimir Putin following Russia's annexation of Crimea from Ukraine in 2014.
- Property funds worth £18bn suspend trading in biggest seize-up since financial crisis
Property funds worth £18 billion have stopped trading after Brexit sent a chill through the commercial property market. The number of funds that have suspended trading has risen to seven since Standard Life stopped investors from taking out funds worth £2.9 billion on Monday, ten days after the Brexit vote. The fear was that too many property investors would try to take their money out at once, forcing fund managers to sell properties at a loss. More than half the funds in commercial property funds are on lockdown. The cooling of the construction industry has fuelled concerns that property prices and rental values could start to fall, leading investors to believe their that their money might be safer elsewhere.
- Business minister Sajid Javid opens preliminary trade talks with India
The business minister is to launch trade talks with India, marking the start of a world tour aimed at drawing up a blueprint for Britain’s role in the global economy outside the European Union. Sajid Javid will hold preliminary talks with Indian government ministers in Delhi on Friday, marking the start of what is expected to be years of negotiations to establish new trade deals with individual countries. These bilateral deals will replace agreements the EU has with more than 50 countries.
- Must Listen: It's Over: Bill Holter
On this edition of X22Report Spotlight, posted on Saturday, July 9th, 2016, returning guest Bill Holter of Jim Sinclair's Mineset discussed how the insolvency of the major European banks such as Deutsche Bank currently make them the leading candidates for a domino effect of collapse that will leave no bank in the world untouched. Bill briefly touched on Ben Bernanke's meeting next week in Japan with Kuroda and Abe, and how the likely topic of their discussion is helicopter money. He also pointed out that central bankers need a fall guy for their failed policies, and in this case, they will probably blame the global collapse on Brexit, with the war card also being played as a sufficient distraction.
- Secret memos expose link between oil firms and invasion of Iraq
Plans to exploit Iraq's oil reserves were discussed by government ministers and the world's largest oil companies the year before Britain took a leading role in invading Iraq, government documents show. The papers, revealed here for the first time, raise new questions over Britain's involvement in the war, which had divided Tony Blair's cabinet and was voted through only after his claims that Saddam Hussein had weapons of mass destruction. The minutes of a series of meetings between ministers and senior oil executives are at odds with the public denials of self-interest from oil companies and Western governments at the time.
- Domestic Trade Is Disintegrating: Heavy Truck Orders Plunge To Lowest Since 2010
Who says you need trade and logistics to maintain the S&P within 2% of its all time high? Not the Fed, that's who, and it's a wonderful thing because the state of US heavy trucking – the backbone of domestic trade infrastructure and logistical supply chains – suggests the US economy is in a far more dire state than the Fed would ever admit. According to the latest data from ACT Research released today, June orders for new heavy-duty, or Class 8, trucks plunged to just 13,100, the lowest number since 2010 according to the WSJ (and since 2012 according to Bloomberg, but no need to split hairs here) indicating that trucking companies – the forward-looking bedrock of any viable recovery along with rails – expect little relief from a weak freight market and sluggish economic growth. This month’s order activity was the lowest monthly total since July 2012 and the worst June since 2009.
- Our Future Is (Literally) Crumbling Before Our Eyes
The sorts of predicaments the world faces — ranging from over $200 trillion in debt, to our unsustainable addiction to fossil fuels, to our over-stressed ecosystems — all require that we get deadly serious about confronting them ASAP, and make difficult decisions and trade-offs. However, our global leaders always seem to opt to kick the can down the road if at all possible. Short-term thinking and near-term priorities dependably get precedence over doing the right thing for the future. Tomorrow’s generations are thrown under the bus by selfishly motivated actors today. As I’ve put forth over and over again: we’re simply not going to make it unless we get much more serious about our efforts than we have been to date. Yes, it’s a wonderful thing that Elon Musk is building sexy electric cars; but even a single minute spent with a pencil, paper and the aggregate energy statistics on transportation will reveal that there’s an enormous gap between where we currently are and where we need to be.
- A Furious Italian Prime Minister Slams Deutsche Bank As Europe's Most Insolvent Bank
Several years ago, we were the first to point out the true “elephant in the room”, namely Deutsche Bank's $75 trillion in derivatives which as we said at the time was about 20 times bigger than Germany's GDP, and 5 times bigger than the entire economic output of the Eurozone.” This was largely ignored by the “experts” because why bring attention to something which is fundamentally a devastating break in the narrative that “Europe is fine” and the financial crisis is now contained. Fast forward to today when Europe is once again not fine, only this time one can't blame Europe's problems on Greece (instead the same “experts” are trying to blame everything in Brexit), when in a surprising admission of reality, none other than Italy's prime minister Matteo Renzi, “went there” and slammed Deutsche Bank as the true “derivative problem” facing Europe.
- Gerald Celente – A Devastating Crisis Is About To Be Unleashed On The World
Today top trends forecaster Gerald Celente warned that a devastating crisis is about to be unleashed on the world. Gerald Celente: From geopolitics to socioeconomics, from environmental to technology, be it the body politic or personal health, as trend forecasters it is essential to have a clear understanding of where we are and the knowledge of how we got here to see where we are going…
- So What’s Going on with Inflation in Argentina?
When Argentine President Mauricio Macri took power, his economic team began to dismantle his predecessor’s heavy-handed policies — a process that had painful recessionary consequences for the Argentine population. Macri and his team repeatedly promised that by the second half of 2016, the pain would be worth it, the economy would recover and we would see some results. In a press conference yesterday, Macri announced that his policies have successfully put the country’s economy back on track.
- Investor Fears Spike as Italy (and the EU) Inch Closer to Doomsday Scenario
Just how low can Italian bank shares go? That’s the question plaguing the minds of European investors, policy makers, bankers and central bankers. Today the shares of the country’s third largest publicly traded bank, Monte Dei Paschi, plunged 14% to €0.33, their lowest point ever. Two years ago, they ran between €5 and €9. The reason for the latest plunge was news that the ECB had sent the bank a letter urging it to draw up a plan for tackling its bad-loan burden. The lender is being asked to reduce its load of curdled debt by €10 billion to €14.6 billion by 2018. That’s a big ask even in the best of times, and these are certainly not the best of times for Monte Dei Paschi. According to Bloomberg, its loan loss provisions would represent over 95% of its operating profits.
- The Big Unravel: US Commercial Bankruptcies Skyrocket
This year through June, there have been 91 corporate defaults globally, the highest first-half total since 2009, according to Standard and Poor’s. Of them, 60 occurred in the US. Some of them are going to end up in bankruptcy. Others are restructuring their debts outside of bankruptcy court by holding the bankruptcy gun to creditors’ heads. In the process, stockholders will often get wiped out. These are credit fiascos at larger corporations – those that pay Standard and Poor’s to rate their credit so that they can sell bonds in the credit markets. But in the vast universe of 19 million American businesses, there are only about 3,025 companies, or 0.02% of the total, with annual revenues over $1 billion; they’re big enough to pay Standard & Poor’s for a credit rating.
- Venezuela Refuses to Default. Few People Seem to Understand Why
It’s been almost two years now since the renowned Harvard economist Ricardo Hausmann caused a stir in his native Venezuela by posing an uncomfortable question. Why does a country that’s so starved for cash keep honoring its foreign debts? In other words, how does it justify shelling out precious hard currency to wealthy bondholders in New York when it can’t pay for basic food and medicine imports desperately needed by millions of impoverished citizens? “I find the moral choice odd,” Hausmann concluded.
- There’s a $3 Trillion Pool of Money Set to Extend Treasury Surge
Bank of America Corp. sees the $3 trillion U.S. corporate pension industry throwing its interest-rate assumptions out the window. And that means the retirement plans will probably throw more money into Treasuries. Even with yields at record lows, Shyam Rajan, head of U.S. rates strategy at the primary dealer, says pensions are likely to embrace the lower-for-longer mantra and bolster the $13.4 trillion Treasuries market. With only 6 percent of assets in Treasuries, half the peak seen in the 1980s, the retirement funds are primed to join buyers looking for a selloff to pounce. That demand waiting in the wings may depress yields further. Bank of America forecasts yields on 10-year notes will fall to 1.25 percent by the end of September, from about 1.39 percent as of 12:10 p.m. in New York on Wednesday.
- Obama's Medicare ‘reform' blocking seniors from accessing important services including knee replacements; hospitals rewarded for spending less per patient
Remember when the liberal left accused us all of being paranoid racists for reading senior citizen death panels between the lines of Obamacare? It turns out that these hysterical Democrats were wrong once again, as new Medicare reforms issued by the Obama administration are reportedly stripping aging Americans of their coverage and leaving them to fend for themselves. According to the New York Post, Obama is completely “dismantling” Medicare, “dooming seniors to needless pain and disability and shortening their lives.” It might sound a bit hyperbolic, but it's true; the new rules apparently scrap Medicare coverage for things like hip and knee replacements, cataract operations and heart surgeries – you know, the things seniors need to actually keep on living.
- Central Banker Who Slayed ‘Zombie Banks’ Meets Too Big to Fail
In two years as governor of Ukraine’s central bank, Valeriya Gontareva has shut down nearly half the country’s lenders, a financial purge with few modern precedents. But at a private dinner this spring with George Soros, she worried that it won’t be enough to banish permanently from Ukraine what she calls “oligarch banking.” “What concerns us both is the dominant position of one particular bank,” the billionaire investor recounted in a recent interview. It “has more than half the banking business and is in the hands of an oligarch who is very powerful.”
- U.K. Property Fund Suspensions Send a Warning to the Junk Bond World
Investors in U.K. commercial real estate just touched a nerve. In pulling their money out of property funds at such a rapid pace four asset managers froze withdrawals this week, the investors showed how the cost of Brexit is spreading. They also tapped into one of the biggest fears of bond market observers: a mismatch between the liquidity of investment funds and their assets. The real estate funds are designed to allow investors to withdraw their money on a daily basis, while the properties backing them could take months to sell. That's similar to many mutual and exchange-traded funds that buy junk bonds — securities that can take weeks to sell — and offer daily redemptions. Yet while the property funds have grabbed the headlines and spooked markets, the bigger threat may be posed by bond funds.
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