Last week was a fascinating pivotal week in the financial world. The bond market no longer functions as a normal market. That was demonstrated when a Wall Street Journal reporter doing a Q&A session with Jerome Powell asked him whether the Fed will take action to stop ten year bonds going up. When he said no, he asked again to try to get him to say yes, because at this point the reporter believes that a free market in long-term bonds has to stop in order to prevent stock market losses, even if he never intellectually articulated that need to himself, he needs it no matter the consequences.
The Federal Reserve within weeks or months will have to begin measures to freeze long-term Treasury bond yields. If the stock market falters this year investors both small and big will demand action and even crave it to make their stocks go up even though it will mean rising inflation and even hurt to themselves. The elites are bullies, and those look up to them emulate them, and rarely in a world of bullies can anyone say they are sorry.
They didn’t in 2008.
That was a theme of my Friday email news headlines… but hey a Friday rally day makes people think everything is a-ok……
SPAC Froth Turns on Itself With Stocks Plunging 20% in Two Weeks – Bloomberg
BUZZ ETF dips in trading debut as investors pass on internet-favorite stocks – Business Insider
Here’s why inflation is kryptonite for bonds as Powell’s comments rock markets – CNBC
Jim Grant: Fed Has Left Us With A Bond Market That’s “All But Destroyed” – ZeroHedge
Global Credit Markets Stumble in One of The Worst Weeks of 2021 – Bloomberg
Bond Market Turns Attention to Risk of U.S. Yields Cracking 2% – Yahoo Finance
Deep Dive: US debt hits 100% of GDP. Should the credit markets care? – S&P Global
U.S. National Debt Is Likely to Nearly Double to 202% of GDP by 2051, CBO Projects – WSJ
The national debt is big and getting bigger. Does it matter? – American Banker
The Tell: Bond market sitting on a ‘powder keg,’ says ING strategist – FOREX TV
Japanese investors dump record amount of foreign bonds after surprise market rout – Nasdaq
Oil prices surge as OPEC and its allies extend production cuts – CNN
Gasoline heads toward $3 in U.S. for first time in 6 years – Houston Chronicle
Tesla halo fades with electric vehicle stocks falling sharply – SeekingAlpha
Why Cathie Wood’s once hot Ark Innovation ETF has lost all its 2021 gains – Yahoo Finance
Canada’s Bitcoin ETFs Losing Momentum, But Not Investors’ Interest – Cryptonews
What central bank digital currencies mean for crypto – Axios
Biden’s economic recovery imperiled by shrinking labor force – Politico
Saudi Arabia ‘Fears Defeat of Netanyahu’ in Upcoming Israeli Election – Middle East Eye
Mike Pompeo Teases Potential 2024 Run for President: ‘I’m Always Up for a Good Fight’ – Newsweek
Rioter who broke into Pelosi’s office: Not ‘fair’ I’m still in jail – The Hill
After record COVID-19 deaths, Bolsonaro tells Brazilians to stop ‘whining’ – Reuters
