The Great Crisis Has Officially Begun (Oil is Just the Start)
by Phoenix Capital Research
ZeroHedge.com
02/04/2016
It would be a lot easier to be bullish today if the entire financial system wasn’t based on fraud and BS.
Every explanation we see regarding the bull market in stocks is really just a cover for the fact that Central Banks spent $14 trillion propping up the bond bubble.
All claims that stocks went up because of the “recovery” or because of “expansion” or whatever really translate to “stocks went up because TRILLIONS in liquidity went into the system and a lot of it ended up in stocks.”
Here’s the reality of things.
Bonds, particularly sovereign bonds, are the bedrock of the financial system. US Treasuries are considered the “risk free” rate of return. Every other asset in the world is valued based on its perceived risk relative to Treasuries.
However, Treasuries have become horribly mispriced because the Fed and other Central Banks have tried to corner the global sovereign bond market.
When sovereign bonds are mispriced, EVERYTHING is mispriced. This includes US stocks, emerging market stocks, commodities, corporate bonds, municipal bonds, etc.
This worked for about five to six years until the dark economic realities that Central Banks attempted to paper over began to appear.
The Rest…HERE
