Thursday , December 12 2019
Home / David Stockman's Contra Corner / Here They Go Again: Global Shadow Banking Is Surging

Here They Go Again: Global Shadow Banking Is Surging

Summary:
In a recent CBB, I posited it was no coincidence that instability in Chinese money markets was followed not many weeks later by instability in U.S. “repo” finance. I believe a decade of zero and near-zero rates and unrelenting global QE has fostered unprecedented leveraged speculation on a global basis. I suspect the size of “carry trades” and myriad forms of speculative leverage dwarf that from the mortgage finance Bubble era – having seeped into all corners, nooks and crannies of global fixed-income markets. Moreover, “repo,” securities shorting, derivatives and securities finance more generally are the unappreciated sources of global liquidity abundance – in tightly interconnected funding

Topics:
David Stockman considers the following as important:

This could be interesting, too:

David Stockman writes Budget Deficit Soars To 2 Billion In First Two Months Of FY 2020

David Stockman writes Accounting Fraud & Freight Recession Topple Celadon, Largest Truckload-Carrier Bankruptcy in US History

David Stockman writes Subprime Retailer Conn’s Shares Crash 33% After Warning On Customer Credit Deterioration

David Stockman writes The Red Ponzi’s Other Great Wall: Nearly 25% Of Dollar Debt Matures Next Year

In a recent CBB, I posited it was no coincidence that instability in Chinese money markets was followed not many weeks later by instability in U.S. “repo” finance. I believe a decade of zero and near-zero rates and unrelenting global QE has fostered unprecedented leveraged speculation on a global basis. I suspect the size of “carry trades” and myriad forms of speculative leverage dwarf that from the mortgage finance Bubble era – having seeped into all corners, nooks and crannies of global fixed-income markets. Moreover, “repo,” securities shorting, derivatives and securities finance more generally are the unappreciated sources of global liquidity abundance – in tightly interconnected funding markets with the nucleus in “offshore financial centers.”

http://creditbubblebulletin.blogspot.com/2019/10/weekly-commentary-what-heck-is.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+blogspot%2FvOLVyH+%28++Credit+Bubble+Bulletin%29

David Stockman
David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

Leave a Reply

Your email address will not be published. Required fields are marked *