Doug Noland: The Bond Bubble Could Easily Disrupt All The Global Bubbles And Make 2008 Look Like A Walk In The Park.

Interviewed in this video is Doug Noland a hedge fund industry veteran and financial blogger, of the Credit Bubble Bulletin

 

The Fed Paradox: Necessary Rate Hikes = Inevitable Crisis

Economic research shows that in a recession, the Fed needs to cut rates at least 3% to get any stimulus in the economy…Not a big deal, right? They always cut rates more than 3%. In 2008 they cut rates from 5% to 0% immediately.
How can they cut rates by 3% if they’re only at 1.5% without going into negative territory? Well, they can’t. And at the Fed’s current projections, they still need 2 years until they get the Fed Funds Rate to 3%. That means the Fed is in a race between time and another recession. Which will come first in the next 2 years?
The answer: it doesn’t matter because both will happen. I call this the ‘Fed’s Paradox’. History shows that every time the Federal Reserve raises rates, it causes the economy to slow down or some kind of a crisis happens.

Trump should have leveled w/ the American people day one about the economy, but he did not. Did Dalio signal Trump is a one-term candidate? pic.twitter.com/mu16J9EgVC

— Alastair Williamson (@StockBoardAsset) February 22, 2018