In this week's Off the Cuff podcast, Chris and Mish discuss:
- Liquidity Crisis 2.0
- Russia & China may just be the first symptoms
- Algos Gone Wild
- Our broken markets are becoming even more so
- Gold Bottom
- It's in
- Too Much Corporate Debt
- It's going to be a killer in this next downturn
As world events turn increasingly 'interesting', Chris and Mish look at the recent action in both Russia and China as indicators that another 2008-style liquidity crisis is brewing.
China is beginning to look quite ill; with it's overspending, over-leveraged ways catching up to it. Copper is the bellwether for a coming reduction in Chinese demand for a number of assets (soon to manifest in a stock market near you). Now would be a good time to strap in an assume the crash position.
Russia is reminding us that global resource markets are essentially a game of "chicken", where those who control the resources are always able to make the other players blink first. If we, and especially Europe, push back enough of Russia, expect liquidity of all sorts to start becoming scarcer in the energy markets.
Chris and Mish also discuss their belief that the bottom in gold is in – with the caveat, of course, that a 2008-style market meltdown could bring prices down; but not nearly as badly as it will paper assets.
by arthur-robey-2