Re: Regulating derivatives-- Why are the so called Regulators still employed. If people really want or need to protest something-- try all the central banks in the world.
Great interview Joel. I always enjoy getting the inside story from insiders, even if they are expats.
I have been thinking recently about 2008. That was a very different time but I still believe there were some parallels worth thinking about. I remember attending a business conference in Barcelona in September 2007. There were people from all over the world there. I’ll never forget the dinner conversations. Everyone felt that their countries, and by proxy the whole world, was headed for the mother of all recessions. The feeling was that everything had become too hot and that the economic bubble was soon going to burst. Everyone was right, but no one thought that something like the failure of Lehman Brothers in 2008 was going to trigger the whole thing.
Things seem much more complicated today, where in 2008 we had a massive sour mortgage bubble we have so many more factors at play today. Do you believe that another “contagion” like Lehman Brothers could trigger a massive market meltdown, and if so what are your thoughts on the possible sources? Thanks,
I was listening to Jim Richards a while back about this very subject. He was describing the Current World Economy like a Mountain with too much Snow at the very top and that an Avalanche was inevitable as the Snow keeps building up. He was explaining that a Single Snow Flake melting could start the Avalanche, but which one doesn't matter. Whats important is knowing that the Avalanche is coming, and investing accordingly. So basically hes saying dont be concerned about what Economic Calamity causes the Crash, but instead Focus on protecting yourself , so your in a position to re invest again when the dust settles. Same approach as Tom Dyson " Maximum Safety now ". He did list some possible calamities " Turkish Default, Collapse of Chines Property Marketing ( happening), A major Bank going under, War ( Ukraine). He was talking about the high likelihood war in Ukraine long before it started, and he was also in China a couple of years ago looking at the Vacant Cities in China, so again he was way ahead of the Trend here.
Interesting chat! But do you think it is just the UK? I've heard Dutch pension funds are in the same predicament so I don't doubt all of the pension funds are up to the same tricks. What's your view?
But yes, it was a globalist coup. Whilst Truss was useless, her mini-budget didn't cause the meltdown. It was a good excuse to get rid of her and bail out another sector at the same time.
Yes, I think we'll be seeing similar situations play out across many jurisdictions, not just the UK. Bill spoke about this on our last podcast, the possibility of a major financial institution in the US "doing a Lehman Bros." It would be the next shoe to drop.
As an aside, I follow and enjoy your own work, NE. Perhaps you'd be interested in coming on the FC podcast to discuss the state of the world at some point? Write me here: research@bonnerprivateresearch.com
I was in a Defined Benefit Pension in Ireland with a large Financial Services Company, a few years back and they used to be known as " Golden Pensions " and during periods of Big Gains , staff often didnt even make Contributions. They had a large percentage invested in what they called" Bonds and Derivative Products " . When i started reading Bil Bonner, Tom Dyson, Jim Rickards they started talking about the Risks within these products. I remember ringing my Financial Advisor and he said " Oh we recommend sticking with the 60/40 Portfolio of Stocks/ Bonds through Ups and downs in the Markets. I didnt take that Advice and bought out of the Company Pension Fund, and now manage my Pension through a " Self Directed Pension Fund " allowing me to purchase a range of ETFSs, Gold, Stocks etc , not available to most Pension Fund Holders.
Seems like they needed to leverage to meet their unrealistic investment return of 8% on avg when interest rates were zero to be able to meet pension obligations.
Thanks, Dorothy! I took a break from writing this week, but will have a regular Sunday Session essay ready for next week. Glad you enjoyed this one. Cheers!
Which Lessons where they as i was around when Thatcher was in Government. I remember her famous saying " The problem with Socialism , its fine until they run out of other peoples money". David McWilliams Economist turned it around and said " The problem with Tories Tax Cuts its fine until you run out of Borrowed money ".
Thatcher would not last 11 days in this environment. The 80s and today or a totally different financial environment. Reagan tripled the deficit and no one complained.
I think that people just don't understand finance. There should be a classes from junior high school on that would teach the basics of finance. Maybe then we would get people in government that actually realize what is going on and what money printing really means. If's NOT free money!!
Joel, What you said regarding derivatives being leveraged,its my understanding the U.S.Securities
Commission doesn't regulate Derivatives.So if this is indeed a fact ,maybe we should have demanded the Gambling Commission in each state to regulate derivatives under their guidelines.There is no difference between the two.One of Bill's readers made the comment,are these people stupid,stupid,stupid,or is this the plan. I think its their plan (the elite).If you pay people enough money,odds are they will cross the line sometime and implement your plan.we may end up a Third World Country,but if the people take their power back and run it,we'd have our country back,and revitalize the magic of the constitution by living by it. So be it.
Rashi Sunak, or whomever, will be dropped in the grease too, but he won’t beat Truss’s dubious record. The focus should be on the BOE’s financial leapfrog. Or, how about Credit Suisse. One thing is certain though, copious intake of Malbec will be of necessity to navigate the FrankenFinancialization Reckoning on the horizon.
As an erstwhile pension scheme trustee, the role of the Investment Consultant is quite important, leading scheme trustees in the asset allocation process. Trustees embrace their fiduciary role, but rely on consultants for counsel as they vet such programs as liability driven asset management created by a profit-focused bank creating and implementing the program. If the pension schemes were challenged to come up with margin call collateral the counterparty bank could well be just as challenged as it likely hedged its risk with a third party. While not the same issue as Long Term Capital Market’s demise many years ago, it rhymes.
Cattle that have to forage on the range are laid back & lazy, when it’s easy and they are in a feedlot. Assume the food is regularly doled out into feed troughs.
When the feed is poor or not in troughs and during drought, both bellow, complain and may even die from hunger.
A new chief bull going into the paddock or feedlot has little capability of changing feed arrangements.
Naturally he will expect and push and bully for a share greater than others. After all he is recognised as a bull amongst mainly cows.
As chief bull, he look askance at other junior bulls and probably moo enthusiastically as well fed. Next is too screw over many of the rest of the herd in the feedlot before chasing others scrounging about in the paddocks.
I am not a farmer but have seen a lot of bulldust in politics.
Re: Regulating derivatives-- Why are the so called Regulators still employed. If people really want or need to protest something-- try all the central banks in the world.
Yes indeed! And they could take their gluey hands off our priceless art in the meantime...
You are spot on Mr. Bowman.
Understaffed from Covid I'm sure. Besides no real harm could be done, the art works are covered by glass panels.
Great interview Joel. I always enjoy getting the inside story from insiders, even if they are expats.
I have been thinking recently about 2008. That was a very different time but I still believe there were some parallels worth thinking about. I remember attending a business conference in Barcelona in September 2007. There were people from all over the world there. I’ll never forget the dinner conversations. Everyone felt that their countries, and by proxy the whole world, was headed for the mother of all recessions. The feeling was that everything had become too hot and that the economic bubble was soon going to burst. Everyone was right, but no one thought that something like the failure of Lehman Brothers in 2008 was going to trigger the whole thing.
Things seem much more complicated today, where in 2008 we had a massive sour mortgage bubble we have so many more factors at play today. Do you believe that another “contagion” like Lehman Brothers could trigger a massive market meltdown, and if so what are your thoughts on the possible sources? Thanks,
Brien Akers
Thanks, Brien. And good question! I'll have to pocket that one to answer more fully in a future Sunday essay. Cheers!
I was listening to Jim Richards a while back about this very subject. He was describing the Current World Economy like a Mountain with too much Snow at the very top and that an Avalanche was inevitable as the Snow keeps building up. He was explaining that a Single Snow Flake melting could start the Avalanche, but which one doesn't matter. Whats important is knowing that the Avalanche is coming, and investing accordingly. So basically hes saying dont be concerned about what Economic Calamity causes the Crash, but instead Focus on protecting yourself , so your in a position to re invest again when the dust settles. Same approach as Tom Dyson " Maximum Safety now ". He did list some possible calamities " Turkish Default, Collapse of Chines Property Marketing ( happening), A major Bank going under, War ( Ukraine). He was talking about the high likelihood war in Ukraine long before it started, and he was also in China a couple of years ago looking at the Vacant Cities in China, so again he was way ahead of the Trend here.
Interesting chat! But do you think it is just the UK? I've heard Dutch pension funds are in the same predicament so I don't doubt all of the pension funds are up to the same tricks. What's your view?
But yes, it was a globalist coup. Whilst Truss was useless, her mini-budget didn't cause the meltdown. It was a good excuse to get rid of her and bail out another sector at the same time.
Yes, I think we'll be seeing similar situations play out across many jurisdictions, not just the UK. Bill spoke about this on our last podcast, the possibility of a major financial institution in the US "doing a Lehman Bros." It would be the next shoe to drop.
As an aside, I follow and enjoy your own work, NE. Perhaps you'd be interested in coming on the FC podcast to discuss the state of the world at some point? Write me here: research@bonnerprivateresearch.com
Thanks Joel! I'll be in touch.
T
I was in a Defined Benefit Pension in Ireland with a large Financial Services Company, a few years back and they used to be known as " Golden Pensions " and during periods of Big Gains , staff often didnt even make Contributions. They had a large percentage invested in what they called" Bonds and Derivative Products " . When i started reading Bil Bonner, Tom Dyson, Jim Rickards they started talking about the Risks within these products. I remember ringing my Financial Advisor and he said " Oh we recommend sticking with the 60/40 Portfolio of Stocks/ Bonds through Ups and downs in the Markets. I didnt take that Advice and bought out of the Company Pension Fund, and now manage my Pension through a " Self Directed Pension Fund " allowing me to purchase a range of ETFSs, Gold, Stocks etc , not available to most Pension Fund Holders.
He truly is disgusting.
Seems like they needed to leverage to meet their unrealistic investment return of 8% on avg when interest rates were zero to be able to meet pension obligations.
Poor Liz; she learned the hard way. Should have taken lessons from Thatcher. Very interesting reading and well written. Thanks!
Thanks, Dorothy! I took a break from writing this week, but will have a regular Sunday Session essay ready for next week. Glad you enjoyed this one. Cheers!
Which Lessons where they as i was around when Thatcher was in Government. I remember her famous saying " The problem with Socialism , its fine until they run out of other peoples money". David McWilliams Economist turned it around and said " The problem with Tories Tax Cuts its fine until you run out of Borrowed money ".
SF: The fact that Thatcher lasted 11 years and poor Liz only 45 days.
Thatcher would not last 11 days in this environment. The 80s and today or a totally different financial environment. Reagan tripled the deficit and no one complained.
Maybe yes, maybe no. My point was that in this environment It is totally different from Thatcher's day.
Much agreed.
I think that people just don't understand finance. There should be a classes from junior high school on that would teach the basics of finance. Maybe then we would get people in government that actually realize what is going on and what money printing really means. If's NOT free money!!
The powers that be do not want to have a well-informed nor intelligent voter base. This is all done by design.
Joel, What you said regarding derivatives being leveraged,its my understanding the U.S.Securities
Commission doesn't regulate Derivatives.So if this is indeed a fact ,maybe we should have demanded the Gambling Commission in each state to regulate derivatives under their guidelines.There is no difference between the two.One of Bill's readers made the comment,are these people stupid,stupid,stupid,or is this the plan. I think its their plan (the elite).If you pay people enough money,odds are they will cross the line sometime and implement your plan.we may end up a Third World Country,but if the people take their power back and run it,we'd have our country back,and revitalize the magic of the constitution by living by it. So be it.
Rashi Sunak, or whomever, will be dropped in the grease too, but he won’t beat Truss’s dubious record. The focus should be on the BOE’s financial leapfrog. Or, how about Credit Suisse. One thing is certain though, copious intake of Malbec will be of necessity to navigate the FrankenFinancialization Reckoning on the horizon.
As an erstwhile pension scheme trustee, the role of the Investment Consultant is quite important, leading scheme trustees in the asset allocation process. Trustees embrace their fiduciary role, but rely on consultants for counsel as they vet such programs as liability driven asset management created by a profit-focused bank creating and implementing the program. If the pension schemes were challenged to come up with margin call collateral the counterparty bank could well be just as challenged as it likely hedged its risk with a third party. While not the same issue as Long Term Capital Market’s demise many years ago, it rhymes.
how do i get to see Tom Dyson's stock pick recommendations? i am a paid subscriber??
Cattle that have to forage on the range are laid back & lazy, when it’s easy and they are in a feedlot. Assume the food is regularly doled out into feed troughs.
When the feed is poor or not in troughs and during drought, both bellow, complain and may even die from hunger.
A new chief bull going into the paddock or feedlot has little capability of changing feed arrangements.
Naturally he will expect and push and bully for a share greater than others. After all he is recognised as a bull amongst mainly cows.
As chief bull, he look askance at other junior bulls and probably moo enthusiastically as well fed. Next is too screw over many of the rest of the herd in the feedlot before chasing others scrounging about in the paddocks.
I am not a farmer but have seen a lot of bulldust in politics.
Leverage is a discusting term , if you happen to be chosen as the fulcrum . The Joelisian Institute of vernacular vivisection rules . . . .