End of the 40-Year Bull in Debt and a “Global Depression” Threat

End of the 40-Year Bull in Debt and a “Global Depression” ThreatFrancis Hunt interviews Danielle DiMartino Booth in a must watch video, her most economically comprehensive yet.

Discussion Topics

Please do yourself a favor and watch the video link below. Here are just some of topics discussed.

Possible end of the 40-year bull in debt, if so a “global depression” threatEmerging Market BlowupsThe YenEquity Markey Complacence – Bond Market Reacting to Reality of Higher Interest Rates, Equity Markets Say Prove Hikes Are ComingGame of ChickenAverage age of Senators – No one will stand up to the Fed except Pat ToomeyJay Powell knows the damage he did by saving BBB-rated bondsYield Curve Inversions – How Much Time Is There?Watch currencies especially in countries importing energyInventoriesDe-globalizationNot going to get fiscal stimulus in this mid-term election year.Housing wealth effect in reverseViolent unwind of the carry trade (Yen and Euro)Pension Plan Irony, Pension Plan Risk, Pension Plan Ponzi SchemesFed Pushes Legal LimitsMonetary policy favors the 1%Extends and Pretend on Commercial Real Estate Loans, Midsize Banks Hold this DebtInvestment ideas: Look for Safe Municipals (not Illinois), Gold, CashAvoid value traps like discretionary spending and healthcare, wary of energy because of huge valuation runups

Two Teaser Quotes

In response to a question about the end of the 40-year bull market in bonds, Booth replied:

“I don’t do hyperbole at all, but if this really is the end, and we really are going to see real rates rise appreciably, then you are talking about a global depression.”

Later in the interview, Booth commented “If you want a front row seat with popcorn, follow the EM [emerging market] space.”

YouTube Interview 

Thanks to Danielle DiMartino Booth and Francis Hunt for an amazingly informative video interview.

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