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Bond Rout Spells Disaster For Stock Markets As Global Credit Kraken Awakens

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http://www.telegraph.co.uk/finance/economics/11671891/Bond-rout-spells-disaster-for-stock-markets-as-global-credit-kraken-awakens.html

Global stock markets are totally unprepared for a return of rising interest rates, and that could lead to a meltdown in equity prices.

Central banks have reached breaking point in their willingness to mindlessly pump money into the markets and soaring bond yields now sound the alarm for a stock market bubble that has reached record highs.

The actions of central bankers after the global financial crisis resulted in record low interest rates and bond markets flooded with money.

Equity prices will be the least of eveyones worries when the Fed puts rates up. I fully expect a 1982 debt crisis redux. I wonder what Minsky would say?

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The Fed will not put rates up voluntarily. Interest rates will stay at zero across the developed world for another 10-20 years, maybe longer.

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The Fed will not put rates up voluntarily. Interest rates will stay at zero across the developed world for another 10-20 years, maybe longer.

My money would be on this. But I think we have 2 possible options and there are extremes. And that's all the options there are.

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The Fed will put rates up this year.

The US already had a "surprisingly" poor economic performance in the first quarter of this year (because of the weather of course), one more of those and a rate rise is off the table.

Quarter-to-Quarter-Changes-In-Real-GDP-_

http://www.forbes.com/sites/samanthasharf/2015/04/29/u-s-gdp-gained-a-sluggish-0-2-in-first-quarter-2015/

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http://www.telegraph.co.uk/finance/economics/11671891/Bond-rout-spells-disaster-for-stock-markets-as-global-credit-kraken-awakens.html

Equity prices will be the least of eveyones worries when the Fed puts rates up. I fully expect a 1982 debt crisis redux. I wonder what Minsky would say?

hed probably say US has pretty much deleveraged already and not to worry about it.

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I disagree that the appetite for QE has gone

The merry go round has passed from US to Europe for now, but - as things stand now - it won't (can't) stop until inflation has worked its magic on debt

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Equity prices will be the least of eveyones worries when the Fed puts rates up. I fully expect a 1982 debt crisis redux. I wonder what Minsky would say?

So what next for me to worry about. UK banks and US banks can handle a MAJOR HPC. Are you in position?

Perhaps the £500K+ South Manchester Semis... £300K-450K+ bungalows owners... £1M-£10M+ houses... BTLers... so on and so on.. will have to worry about something for once. Not being as equity rich as they thought they were with forever HPI.

Renter saver (10 years+) He was existing in a multi-year state of quiveringly ghastly tension; thinking at maximum capacity, worrying at full speed, full nausea, appallingly aware of the reflation bubble-on-bubble. Any long term renter-saver would have been the same - clutching a churning stomach, tearing their hair out and gibbering incoherently.

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The Fed will not put rates up voluntarily. Interest rates will stay at zero across the developed world for another 10-20 years, maybe longer.

Indeed. It's obvious. Telegraph talking a) cr4p as usual and b ) on behalf of their City mates. Getting others to sell

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There's the ECB.. and I'm not certain if he's correct about China... but US tapered off.

In my view the US QE was like equivalent of negative interest rates and more... direct injections, and now it's stopped.

A research note from Alan Ruskin, macro strategist at Deutsche Bank, shows that central banks in the US and China are no longer aggressively buying assets. “In sum, 2015 will go down as the year when major Central Banks hit an inflection point in their willingness to distort and manipulate markets,” Mr Ruskin said in the research. The slowing down of central bank bond buying is already sending shockwaves through the markets.

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Just remembered... US QE probably hasn't ended in full. As I remember it the Fed kept the right to keep on buying Mortgage Backed Securities, for some time, with the interest/dividends on the bonds they'd bought via the massive QE print.

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QE is still ongoing, just covertly. Probably same for the BoE. Every time the Fed injects QE the economy gets a sugar rush. Our sugar rush was the housing boom. Both are wearing off and the kid economy needs his next fix. Obviously an economy based on actual savings and sound investments/money is not allowed as it's far too unprofitable compared to ponzi schemes and HPI.

Unfortunately they could end up overdosing the economy patient and he flatlines.

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QE is still ongoing, just covertly. Probably same for the BoE. Every time the Fed injects QE the economy gets a sugar rush. Our sugar rush was the housing boom. Both are wearing off and the kid economy needs his next fix. Obviously an economy based on actual savings and sound investments/money is not allowed as it's far too unprofitable compared to ponzi schemes and HPI.

Unfortunately they could end up overdosing the economy patient and he flatlines.

As they can operate in secret for the benefit of their mates, they can do anything.

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