globaleconomicanalysis.blogspot.com - 11/12/2008
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As one might expect in a credit crunch, default risk is rising. One measure of that risk is corporate bond yields. Let's take a look and see how various grades of bonds are performing. Click on any chart in this series to see a sharper image. Bloomberg AAA Rated Industrial 10-Year Bond Index ...
ft.com - 11/18/2008
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ft.com —
Would you believe that we shall actually have
significant deflation in the US next year? And the...
year after that? And flat consumer prices for the year following? That's happened only once in a developed country since the 1930s - when Japan recorded a ...
(more)
FT.com / Companies / Financials - In a weird world, ...
lewrockwell.com - 11/17/2008
bloomberg.com - 11/19/2008
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Technically Speaking, Market Analysis and Theory —
... Mish has a detailed article about why the investing public should be VERY AFRAID, when looking at bond performance. You cannot get this information from your broker, a relatively detailed knowledge of equity markets, Bloomberg news, or gawd forbid, Tout TV. The divergence between equity prices/historical modeling (even by people I greatly respect) and the debt deflation behavior of the bond market/credit market is poorly understood by most investors, including MANY professionals. ...
Auto de fé
FT Alphaville —
... altered economic world. And bailing out the carmakers has, with that altered reality, always been lurking in the background as a Democratic political totem, hitherto dormant, now suddenly awakened. Saving GM is Democratic wish-fulfilment. What then will happen when the next all-American industry hits the wall? Because surely some will. Can we expect a bailout of WalMart? Boeing? The briefest of glances at US corporate bond spreads will tell you something pretty clearly: there is indiscriminate carnage in the debt market, which may well drag a host of large companies down and ...
Daily Dose of Deflation 12Nov2008
GalaTime —
I’m starting a series of short posts that’ll link to atleast one article that points to upcoming deflation (not your friendly neighborhood dis-inflation).
Why? Because too many people focused on high & rising inflation over the past few months and very few of them will turn around 180-degree and start looking at a deflationary scenario, especially in India.
So, here goes -
MISH: Industrial Bond Yields Strongly Support Deflation Thesis
only AAA rated bonds are ...
the corporate bond collapse
Decline and Fall of Western Civilization —
... mish offers evidence of debt deflation in examining corporate bond spreads, which includes this shocking chart of Baa spreads to Aaa and t-bills dating back to 1934. this echoes the horrifying plight of western capital markets, where levered finance of all manners -- hedge funds, investment banks, institutional investors, commerical banks -- is being hammered and forced to liquidate in the first ...
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Embrace Deflation - It's The Cure, Not The Problem
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Goldman says fund managers expect deflation
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VoxEU.org 2/11/2009 — Robert Ophèle , 11 February 2009 The recent rapid fall in inflation, amidst a financial crisis and a very sharp economic slowdown, has raised the spectre of deflation. But, this column argues, current dynamics in France and the euro area are actually ...
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