Does the year 2000 and 2007 ring any bells? The drop in the #DowJones to bear market territory took 8 MONTHS. Oct 2007 – June 2008… It’s coming faster this time.

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As the household net worth (purely debt) as a % of disposable income (“wealth effect”) gets above 600%, savings rates seem to drop sub-5% in unison; then net worth dissipates rapidly. 2018 has the largest divergence in modern history.

h/t @OccupyWisdom
Just looking over some 2008 financial crisis data….
The drop in the #DowJones to bear market territory that everyone remembers took 8 MONTHS. Oct 2007 – June 2008.
The latest drop in the Dow, that nobody is worried about was > 10%, in 14 DAYS.
It’s coming faster this time.


Money is no longer free for the federal government, and interest payments are going to start squeezing the budget again
For most of the past decade, fixed-income investors have effectively been telling the U.S. government: Borrow more money! Please!

A simple quantitative measure of this sentiment has been the yield on inflation-indexed five-year Treasury bonds (aka Treasury Inflation-Protected Securities, or TIPS), which has been below 1 percent since September 2009 and spent much of the time since then in negative territory. Yes, investors have been paying the U.S. government to take their money.


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