In this week's Off the Cuff podcast, Chris and Mish discuss:
- The Beginning of the End of the Eurozone?
- The disgruntled citizenry is voting its mind
- Mal-investment Everywhere
- But the bond market is likely to crack first
- No Exit
- After 5+ years, the Fed is as stuck as ever
- The Biggest Bubble
- A.k.a: Life as we now know it
Mish rejoins Chris this week to comment on the mal-investment that is running rampant around the globe. Today's markets reminds them strongly of the feel in 2007 when nearly everyone knew prices had run far past sanity, but no one wanted the fun to end.
Worldwide suppression of interest rates has caused the markets to entirely misprice risk. It's as if it doesn't matter anymore. Spanish debt is trading at historic lows. Historic, as in the lowest it's EVER been. This is Spain we're talking about. A country with a current total unemployment rate of 26%. Who's GDP finally turned positive after more than 3 years of negative growth — and is now a mighty 0.4% (which, admittedly, is better than the US fared last quarter). A country still mired in the depths of a collapsed housing market.
Do those seem like the stats of a "lowest risk ever" market environment?
Similar tales can be told of most asset classes around the world.
by arthur-robey-2