US CEO confidence and profits growth collapsed, U.S. tech sector sees highest job cuts in May since Dec. 2020… Black Swan Investor: ‘Greatest Credit Bubble’ to Pop


twitter.com/JTSEO9/status/1533778900521738242

We are primarily funded by readers. Please subscribe and donate to support us!

Black Swan Investor Is Watching for ‘Greatest Credit Bubble’ to Pop

Right now, the Universa Investments founder, whose fund aims to protect clients during black swan events, says the financial system is most vulnerable to “the greatest credit bubble of human history.”

“If this credit bubble ever pops, it’s going to be the most catastrophic market failure that anyone has ever read about — but let’s hope that doesn’t happen,” Spitznagel, Miami-based Universa’s chief investment officer, said Thursday in a telephone interview. “We’ve gotten ourselves into a tough spot.”

Spitznagel, 51, insists he’s not a “doom and gloomer.” He’s long been critical of central banks keeping interest rates near-zero or even negative, which he says has propped up asset values and encouraged excessive borrowing. Officials around the world are now tightening monetary policy to combat elevated inflation.

His warning follows other cautious remarks this week from JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, who told investors to prepare for an economic “hurricane,” and Goldman Sachs Group Inc. President John Waldron, who said he’s seen an unprecedented number of shocks and expects “tougher economic times ahead.”

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.