Tag Archives: Bill Gross

  • Blog
    © Sgame | Dreamstime.com

    Is Gold at a Turning Point?

    Precious metals investors' heartbreak may soon be over
    by Adam Taggart

    Thursday, June 13, 2013, 1:18 AM

    32

    There's no way to sugarcoat the dismal performance of the precious metals in recent months. But a revisitation of the reasons for owning them reveals no cracks in the underlying thesis for doing so.

    In fact, there are a number of new compelling developments arguing that the long heartbreak for gold and silver holders will soon be over.

    Read More »

  • Insider
    © Alexmak72427 | Dreamstime.com

    How to Survive the Mother of All Bubble Burstings: A Collapse of the Bond Market

    It's time to batten down the hatches
    by Chris Martenson

    Thursday, March 21, 2013, 8:43 PM

    50

    Executive Summary

    • The three main signs presaging a bond-bubble collapse are now evident
    • Why the Fed will fail to get new credit debt growth at the rate it needs
    • The return of CDOs and other risky tactics that show market participants have returned to reckless thinking
    • How a bond market collapse will play out
    • How to product yourself and your wealth during the extreme pain of a bond market collapse

    If you have not yet read Part I: Investors Beware: Market Risks Today Are Higher Than Ever, available free to all readers, please click here to read it first.

    The dangers growing in the bond market are, of course, all the result of the Fed, et al., cramming the real rate of interest on Treasury bonds into negative territory, starving investors for income, and forcing them to chase yield whenever and wherever it can be found.  Given a long enough time without a serious disruption in the markets, you eventually find yourself exactly where we are, with everyone chasing yield because they have to. Hey, everybody else is, and nothing bad has happened yet, right?

    Of course, the odds of this ending well are practically zero.

    How ridiculous has it become?  How about a company currently in bankruptcy proceedings able to sell bonds at investment-grade yields?

    AMR Bankruptcy Yields Record-Low Bond Coupon

    Mar 13, 2013

    American Airlines is selling investment-grade debt even as it spends a 15th month in bankruptcy while bond buyers look ahead to the merger with US Airways Group Inc. (LCC) that will create the world’s largest carrier.

    The AMR Corp. (AAMRQ) unit issued $663 million of so-called enhanced equipment trust certificates yesterday that included a portion paying 4 percent, matching the record low coupon for similar airline debt, which was first awarded to United Continental Holdings Inc. in September, according to data compiled by Bloomberg. American is also seeking to refinance about $1.3 billion of bonds backed by aircraft after receiving court approval to do so in January.

    By the time you have 'investors' offering money to a perpetual basket-case like AMR a company that also happens to be in bankruptcy proceedings at present at investment-grade 4% yields, you know you are in the midst of a crazy bubble. Consider this anecdote to be the bond market equivalent of a hairdresser from Las Vegas buying her 19th house…

    Enroll Now
    Or Sign In with your enrolled account.

    Read More »

  • Blog
    © Blueximages | Dreamstime.com

    Time to Focus on ‘Return of Capital’

    Reflections on the day after the election
    by Adam Taggart

    Wednesday, November 7, 2012, 5:01 PM

    125

    I am more concerned with the return of my money than the return on my money.

    – unknown (often attributed to Mark Twain or Will Rogers)

    The U.S. Presidential race is now behind us. And this morning the world woke up and realized that all the issues the election postponed now lie before us.

    In his victory speech, President Obama focused on moving 'forward':

    Read More »

  • Blog

    Daily Digest 5/29 – UN & Bill Gross Warn of Dollar Crisis, Gold’s Future, China’s Appetite for US Farmland

    by DailyDigest

    Sunday, May 29, 2011, 3:38 PM

    0
    • U.N. sees risk of crisis of confidence in dollar
    • Gross Believes Not Raising Debt Ceiling Would Crush Dollar
    • Another Volcker Moment at Hand? An Appraisal of $1500 Gold
    • BBC HARDtalk – Jim Rogers Interview (part 1)
    • Biggest Inflection Point of the Year
    • What To Do With All The Nuclear Waste
    • China is ravenous for farmland: Attempting to buy up millions of acres here
    • Estimating the critical levels of petroleum consumption necessary to sustain the modern food production system

    Crash Course DVDGet Yours Today! The Crash Course Special Edition with Presenter’s Pack (NTSC or PAL)

    Read More »

  • Blog

    Guest Post: Fannie and Freddie – The Exit Doors are Shut

    by Ilargi

    Friday, August 20, 2010, 6:09 PM

    0
    by Ilargi of The Automatic Earth

    This article ran for our enrolled users earlier this week and is one in a series from respected guest commentators while Chris is at work on his new book. Please welcome them to the ChrisMartenson.com community and enjoy the fresh perspective.

    From a purely political point of view, it’s a simple story.  Existing homeowners are a far more powerful force at the voting booth than potential owners, homebuyers, are.  It’s therefore very much in the interest of the incumbent government to keep home prices as high as it can.  Let them slide too much and you will pay for that at the next election.  For potential buyers, you can devise plans that lower interest rates and down payments, but that’s all.  More affordability simply through lower prices is not on the political table.

    Still, in the “listening conference” on US housing policies – Fannie Mae and Freddie Mac in particular – that started this week, it’s not voters who have the biggest say.  That is reserved for the financial industry, and how could it not be?  Not that the Obama administration has to hear the truth from the bankers anymore:  Washington has long since realized that truth.  Which is that without Fannie and Freddie and the 80% stake the US took in them in 2008, as well as the unlimited financial guarantee issued by Tim Geithner at the end of 2009, it’s not just the housing industry that would instantly collapse.  The banking industry would, like a shadow, rapidly follow in its footsteps.

    Read More »

  • Blog

    Daily Digest – August 18

    by Davos

    Tuesday, August 18, 2009, 2:40 PM

    0
    • Two Beers With Steve – Unsustainable Trends Eventually End with Nathan Martin
    • True Green Shoots: New battery could change world, one house at a time (H/T JoeManC)
    • Zimbabwe Bus Fare is 3 Trillion Dollars
    • Bond Guru Bill Gross Living Large in California (Video on page)
    • Anemic Foreign Bond Sales: Foreigners’ Cumulative 12-Month Net Purchases-Sales of U.S. Assets (Chart)
    • Americans Had to Work from January 1 to August 12 This Year Just to Cover Cost of Government (Repost, H/T DrKurbyLuv)
    • China to Buy $2 Billion Worth of US Mortgages (H/T PineCarr)
    • Why “Normal” WILL NOT Return (Video, Repost)
    • “Denial ain’t just a river in Egypt” – Mark Twain
    • Barney Frank Chairman of the House Financial Services Committee (Video)
    • Faber Video: Big Crisis Ahead
    • WSJ: Loss Rates for FDIC higher than during S&L Crisis
    • Labor Day to Halloween Fright Show
    • “Self-Preservation” Bodes Ill for U.S. Economy

    Read More »