Why Everyone Will Just Keep Doing What They’re Doing Until the System Breaks

mission complete: jam everyone back into tech $SPX pic.twitter.com/R49893WJ6V

— Alastair Williamson (@StockBoardAsset) September 13, 2018

We warned you in the summer that despite the bulls constant claim of 'massive underlying demand and a shortage of homes', housing was slowing. t.co/SYe4b6bWub Now the homebuilders seem to waking up to that reality t.co/QRi1bXpBxP

— Julian Brigden (@JulianMI2) September 13, 2018

Governments are largely responsible for the borrowing binge. To pull the global economy back from the brink, they borrowed heavily from the future.

Is it sustainable? No one knows for sure t.co/03k0lrRo9W pic.twitter.com/ZYuI9iOGE8

— Bloomberg Opinion (@bopinion) September 13, 2018

This chart is fascinating. Look at the inflows in the '99-'07 period and then what happened post '08. Market more parabolic so did buybacks replace all of the previous buying that used to require inflows from 401k's and retail. Notice the outflows recently.

H/t @vixsquared pic.twitter.com/cHDqDQ2hIu

— M/I_Investments (@MI_Investments) September 13, 2018

In the decade since Lehman collapsed, worldwide debt has ballooned to $250 trillion.

Central banks have kept interest rates too low for too long, punishing savers and promoting risk-taking t.co/03k0lrRo9W pic.twitter.com/3cXmajyuwR

— Bloomberg Opinion (@bopinion) September 13, 2018

The Next Financial Crisis Is Right on Schedule (2019)

Fed’s Brainard: We’ll Invert the Yield Curve With Rate Hikes, and That’s Fine

There has been no better historical predictor of recession than an inverted yield curve. The Fed’s Lael Brainard insists that even though an inverted yield curve has always predicted a recession every time it has occurred for the past 60 years, “This time it’s different.”

Former UK PM: “World Is Sleepwalking Into Next Financial Crisis”

Gordon Brown says the obvious outcome of failing to address any of the root causes of the last financial crisis is a near-guarantee it will repeat. “The penalties for wrong-doing have not been increased sufficiently. The fear that bankers will be imprisoned for bad behavior is not there.”

Mortgage Broke-er: Industry Layoffs as Mortgage Refinancings Hit 18-Year Low

Who in the world would refinance now, with 30-year rates nearing 5%, after they had so long to do so more cheaply? Only the most last-ditch desperate who need to cash out any equity they have to keep thei heads above water, despite locking themselves into the worst rates in six years.