Page 22 - The GSE Report March-April 2018

MONETARY POLICY
MJARN.U-AARPYR.20210818
In The Stansberry Digest, Porter Stansberry wrote:
I believe we’ll see a real panic in the corporate bond market at some point soon. I expect the average price of noninvestment-grade debt (junk bonds) to fall 50%. Investment-grade bonds will fall substantially, too. (I’d estimate something around 25%.) This is going to wipe out a huge amount of capital... and believe me... it’s almost 100% guaranteed to happen.
Junk-bond guru Martin Fridson has projected $1.6 trillion of bonds and loans will default. That means three times as many debt issuers will default than the last recession.
This would have already happened, according to Fridson, but the government has kept interest rates artificially low, making it possible for many at-risk debt-issuers to refinance their debt at a lower interest rate. This delayed an inevitable wave of defaults in the junk-bond industry, but only temporarily. The government can’t keep interest rates low forever... (The Stansberry Digest, Porter Stansberry, 04/28/18)
Will central banks ban cryptocurrencies?
Rumors are swirling that on July 21st at the G20 Summit, central bankers and finance ministers will ban crytocurrencies. “Bitcoin will go to zero,” according to Casey Research’s E.B. Tucker. “And 99.9% of all other “crypto” coins will be deemed worthless, too. The ban—expected to be announced at [the G20] meeting in Buenos Aires—will be backed by all the world’s top central banks. ... But it’s not just the most powerful leaders on earth who will endorse this... Credit card companies like Visa and Mastercard... as well as most mainstream media companies are also pushing hard to end crypto. ... And we expect an official ban to come as early as July 21st, at [the G20’s] final meeting of the year.” (Casey Research, E.B. Tucker, 04/26/18)
On April 9, Bloomberg Technology reported:
Adam Fisher, who oversees macro investing at New York-based Soros
Fund Management, got internal approval to trade virtual coins in the last few months, though he has yet to make a wager, according to people familiar with the matter. A spokesman declined to comment. (Bloomberg Technology, Alastair Marsh, Saijel Kishan and Katherine Burton, 04/06/18)
© 2018 by Canfield Press, LLC. All rights reserved.
www.canfieldpress.com 22