Doomsday Scenarios – Now all the talk on Bloomberg Business. . .

Doomsday Scenarios?

A tad late – but better late than after the event.

Well it had to happen – everyone has a theory on the Fed Reserve – the knock on effect of an interest rate increase.

Bloomberg link at the bottom of the page – when reading that article ignore the likes of one Larry Summers – that ‘doofus’ is one of the people that put us into this position.

Totally bank orientated.

The only one worth any mention is BMO’s Kholi – “They’re all pretty dangerous,”

And to my mind number 2 takes the cake.

“2) Emerging Contagion: Developing countries that rely on foreign capital to finance their current account deficits are expected to face trouble, since higher rates in the U.S. would threaten to siphon that capital away. In a report last month, Morgan Stanley identified Brazil, Indonesia, South Africa and Turkey as the riskiest. UBS AG also listed Ukraine, Egypt and Venezuela as the most vulnerable, based on their debt and strength of finances.”

Charts posted on Bloomberg.

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I keep smiling when I see this bullshit – stupid zero rate policies designed for the benefit of big business – Greenspan – Bernanke should hang their heads in shame.

Only benefit those with access to the very cheap money – Banks.

Yellen has to fix this – and quickly.

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Note corporate debt / government debt correlation.

Okay a question if I may – if you could not run a company on near zero interest rates – how can you run a company when the interest rate expense increases?

Never mind – you would have to actually run a business to understand.

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Now do you see where all the money has gone?

How to wipe out savings in one easy collapse of iShare ETF’s in Bonds. A lot of money – just hope the investors are prepared to take a quick loss or it will not be a pretty sight come October 1.

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The bets are on – I just want my beers – should be 1.5 percent to cover the Fed’s procrastination – but all I want is an interest rate rise.

http://www.bloomberg.com/news/articles/2015-09-15/the-doomsayer-s-guide-to-the-fed-rates-and-what-could-go-wrong#media-6

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