Calling Kevin Bacon…’ALL IS WELL”

“CALLING KEVIN BACON…”ALL IS WELL!”
February 9,2016

By Gary Kaltbaum
garyk.com
@GaryKaltbaum
Fox News Business Contributor

So…now we are hearing about global growth concerns. Thanks so much! The markets knew it a long while back.

For years, our number one motto has been “it’s never bad until the market says so.” We have had this motto because underneath the surface of a market going higher, it had been evident to us that the termites were eating away at the markets and the economy around the globe. It is not until the markets act up that there is trouble. Remember…Lehman, Bear Stearns, Merrill, Countrywide and the rest did not go out of business…the markets put them out of business! Who are these termites? It’s all the governments and central banks that believe you can grow your way out of trouble through more debt, more printing of money and now, negative rates. These people have continued to unabatedly interfere with free markets as well as the hard work of the citizenry. Throughout all this nonsense, we have simply posed the question to you dozens of times and that is “what is going to be the ultimate outcome of massive debt, massive leverage, the printing of money, 0% rates and now negative rates? You know what we thought the answer was going to be.

In case you did not know, nothing changed with Greece. They just cut another credit card to get them out of the news. Nothing changed here! They just printed $5 trillion, took rates to 0% and grew debt by another measly $8 trillion. Don’t worry! They got it covered! It’s never bad until the market says so! Well, markets are finally saying so. And frankly, we are not so sure these geniuses running governments and central banks can do anything about it now. You just can’t keep going deeper into negative rates…or maybe you could. You can’t keep printing money or maybe you could. You can’t keep going into more debt or maybe you could. The problem is that eventually, you get diminishing returns and those diminishing returns may just be at hand.
Tale of the tape:

Commodities crash.

Emerging markets plunge.

U.S. markets now plunge. (The NASDAQ is down almost 15% this year and it is early February!)

European sovereign risk soaring.

Markets no longer reacting well to all the easier money talk. Japan markets crushed after going negative rates!

Greek bond yields soaring. Remember Greece?

Credit spreads are blowing out.

Banking stocks both here and more around the globe whacked.

$7 trillion of debt now have negative rates.
We can go on but we know you are eating breakfast. Many are now agreeing with what we told you months ago and that markets were telegraphing not only slowdowns but downright recessions and our big worry remains…with so much leverage and debt again built up by the crazies and with rates already at 0% and a ton in the negative, what will these geniuses come up with next? We pray they do not come up with something new as anything they do will only exacerbate a situation that they created in the first place.

We constantly tell you we hope we will be wrong about all this but more evidence continues to come in that the can that was kicked down the road has no road left!

Keeping fingers crossed!