Bear Sterns, 10 year on

Posted: March 18, 2018 in Uncategorized

And we have not learnt anything.

The Global Financial Crisis technically started 10 years ago with the failure of Bear Sterns, 16 March 2008.

10 years after we are still in the midst of the experiment (Use 20 trillion dollar injected in the economy since than. And still not retrieving it for real).

Moreover President Trump is winding down the Dodd-Frank regulation which was regulating the banks (avoiding banks to make crazy bets like the Bear Sterns one).

We are still in the magical thinking on how to make money. At the time it was mortgage, now is inverted volatility trades and crypto assets. They do not represent an existential threat as mortgages…but still a threat.

But geopolitics is of a different order of magnitude in respect of 2007.

So it is smart to be on edge. And Jeff Gundlach, CEO of Double Line Capital- ultra respected market guru and the only one who warned about the GFC in 2006- just sees a negative US stock market for the year (not a financial crisis).

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