The stock and bond rallies went flat in August and bonds sold off in September as heavy Treasury supply and foreign sovereign liquidation of Treasury holdings created friction in the markets. Liquidity is still growing slowly but the market response to rising liquidity has been diminishing as friction builds.
Liquidity Growth Slowing, Market Friction Increasing
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.