U.K. Crisis Spills Into U.S. Junk Debt

[vierentwintig]

@sanctuaryofthegnosis Get yourself a new Prius.

 

[victoire213]

@kate930 You are watching Financial Collapse in real time.

 

[aihi]

@kate930 Anybody else getting those 2008 vibes right now?

Edit - I get it, this is not 2008. It's different, I was alluding to the financial contagion spreading around the world. I don't think this is necessarily bearish either - it may force central banks to be more dovish, as in the UK where they are buying bonds. In truth, I think global interest rate rises are hitting a ceiling where they might trigger a financial crisis that central banks have to address. I think the UK is just first against the wall.

 

[aquariusmediaaseo]

@aihi Yes I am but honestly I feel more prepared this time. I think when Covid hit a lot of us saw the writing on the wall

 

[ogunsh]

@aihi It's the "oops, we didn't consider that" stuff. We leverage the tits off these complex structures and when changes happen we get unexpected results. If those unexpected results increase the change in the same direction significantly, then we get a runaway feedback loop.

Low rates for all those years means we have a system that hasn't experienced fast rate increases. Surely more surprises await. At least some of it will be fixable (more or less). Could be relatively minor or a very bumpy ride. AFAICT, there's no way to tell what will be obvious in hindsight.

 

[wmc21157]

@aihi No, literally nobody with a brain or who was old enough thinks this is a sub prime mortgage driven financial crisis.

Stop trying to parallelize everything. This feels like bad policy management, which is very much a common problem.