PRE MARKET POWELL

Mystery last minute pop yesterday gives strong NASDAQ day while DOW was down…no biggie. Futures down this morning when Powell told the world they are lowering rates at the end of the month. Futures now up nicely with major large cap indices opening into new highs.

So…GDP in the 3s, unemployment in the 3s, major indices at highs…”let’s lower rates!”

We have been telling you who these people are forever. They are proving us right. Unfortunately, all these moves are enabling massive amounts of debt across the world to the tune of $250 trillion with no end in sight.

Seeing 50 year Italian bonds floating at 2.8% even though Italy has debt problems. It was oversubscribed by miles.

Seeing junk bonds in Europe with negative yields.

100 year bonds (the most risky because of duration) are soaring as yields continue to implode.

Just don’t worry because there are no bubbles.

 

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