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One Trader’s Dire Warning For Markets: “There’s No Way To Know Where This Will Lead”
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden on 02/16/2016 11:21
We’re nearly two months into the new year and one of the defining themes for markets thus far has been the extent to which investors have seemingly woken up to the fact that central bankers are not, in fact, omnipotent.
That rather unpleasant revelation has in turn caused some to reconsider the wisdom of the policies that drove stocks to nosebleed levels off the 2009 lows. That is, if it’s now clear that ZIRP, NIRP, and QE have failed when it comes to stimulating global demand and trade and reinvigorating the inflationary impulse, one is left to wonder what happens when the world careens back into recession against a backdrop of extreme capital misallocation and exhausted counter-cyclical policy maneuverability.
What happens, for instance, if stocks begin to crash and authorities are powerless to arrest the slide because rates have hit the lower bound and there are no more monetizable bonds? Do all DM central banks simply go “full-Kuroda”/ “full-Chinese national team” and provide daily plunge protection? Which brings up another point: the BoJ, the SNB, and Norway’s $830 billion SWF are big holders of equities. What happens when the value of those stakes plunges?
Here to ponder those questions and more is Bloomberg’s Richard Breslow.
The post One Trader’s Dire Warning For Markets: “There’s No Way To Know Where This Will Lead” appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/16/one-traders-dire-warning-for-markets-theres-no-way-to-know-where-this-will-lead/
