Profile image
By CoyotePrime (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

The Economy: “All Hell Is Going To Break Loose In The Bond Market”

Friday, June 16, 2017 13:49
% of readers think this story is Fact. Add your two cents.
“All Hell Is Going To Break Loose In The Bond Market:
100% Proof That A Massive Economic Meltdown Is Closer Than You Think” 
By Gregory Mannarino

“This past Wednesday we heard from the Federal Reserve with regard to monetary policy, and as I predicted they did raise the federal funds rate 25 basis points however, instead of yields rising, they are dropping. More than a year and a half ago I had said publicly that the Federal Reserve’s attempt at trying to normalize bond yields would backfire- and this is exactly what is happening.

It is clear to me that the Federal Reserve has absolutely lost control of what is occurring in the bond market. Remember, this is uncharted territory, we have never been here before in the history of the financial world-so the Federal Reserve actually has no idea of how the market will react in the current environment with regard to their attempt at normalizing interest rates.
Click image for larger size.
The yield curve as seen in the picture above continues to flatten out, and this trend will continue until the curve inverts. The last time the yield curve inverted, the 2008 economic meltdown occurred, and the time before that we suffered bubble meltdown.

The fact is we are existing in a multiple bubble economy at this time, worse, and unlike anything which has ever been seen before. The reason why these bubbles exist is simple: the Federal Reserve has not allowed the market to do its one and only job, and that is to determine fair value.

The Federal Reserve’s interest rate suppression cycle has not only allowed, but has been the driving force behind mass malinvestments across the entire spectrum of asset classes and as such, bubbles have been created. The Federal Reserve has created distortions across the spectrum of asset classes which is frankly beyond belief, worse than has ever been witnessed in the history of finance. What this means is when the yield curve inverts this time, we will experience a meltdown magnitudes greater then the 2008 crash.

The irony is just like last time, the general public has no idea of what is coming and they are just as complacent as well.

In summary. The federal reserves attempt at raising interest rates is having a paradoxical effect on the market as the yield curve continues to flatten. I fully expect the yield curve to invert in the not so distant future. What this means is we can expect a market meltdown orders of magnitude worse than the last two times we had a yield curve inversion.”


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.