In this week's Off the Cuff podcast, Chris and Mish discuss:
- Weakness in U.S. Treasurys
- The mother of all powder kegs
- The Japan Bug
- Finally finding its windshield
- The Pain in Spain
- A preview of what's coming to the rest of the EU
- The Odds of a Euro breakup
- Getting higher all the time
Our usual daily programming of "stocks marching higher, whatever the news" was interrupted yesterday, shining light on some interesting cracks in the recovery's facade. U.S. stocks were down (gasp!), bond yields rose sharply (truly, a big deal), and precious metals showed a backbone we have not seen for months.
Chris and Mish note that the data is beginning to get interesting. We may indeed be nearing the end of the whitewash and smokescreens that have blocked our view of the true health of our markets for years.
The big story here is the noted turnaround in Treasury bond yields, which have been beaten down over the years to generational lows. Rising bond rates are the kryptonite that will bring down our hyperleveraged economy faster than a speeding bullet.
Meanwhile, developments in Japan and Europe continue to worsen.
We are now seeing more of the symptoms we would expect in advance of a market downturn of the kind Chris has predicted.
by rubearish10