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Economist magazine sounds alarm about new market 'convulsions'


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Posted

The Economist identified a spike in the value of ten-year American Treasury bonds as a signal that investors no longer see U.S. bonds as safe havens during times of economic distress.

"It is the most worrying sign of financial distress yet, and there have been plenty," the magazine warns. "Traders are paying soaring premiums to protect themselves against volatility, businesses are facing increasingly bad terms on borrowing and a dash for cash has sent the gold price down.

Spiking Treasury yields are even more ominous, since they drag up other borrowing costs with them. In short, they are not just a symptom of market stress -- they are a cause of more to come."

in past financial crises, the Economist writes, the US survived as it was seen as a haven from economic chaos, whilst at present the US was regarded as the source of economic turmoil.

'Extremely dangerous': Economist magazine sounds alarm about new market 'convulsions'

  • Agree 1
Posted
4 minutes ago, TheAppletons said:

 

  Agree for the most part on The Economist.

 

  However, about a month ago, they printed an "unnamed" author that argued that US Veterans were being overcompensated for their service.  

 

  It's been interpreted by some as a "planted" story to justify cuts to veteran's benefits.  

Really? Struggle to see what their motivation would be. Do you have a link to the article?

Posted
10 minutes ago, BLMFem said:

Don't know if you noticed but the 2022 drop happened due to Covid, and despite all the whining from the MAGA crowd, the markets did not ignore it.

This time around the drop happened because one idiot at the top started doing things seemingly designed to crash the US economy. Again, the markets took notice.

See now?

 

Who said anything about the markets ignoring it ? 

Posted
11 minutes ago, BLMFem said:

Don't know if you noticed but the 2022 drop happened due to Covid, and despite all the whining from the MAGA crowd, the markets did not ignore it.

This time around the drop happened because one idiot at the top started doing things seemingly designed to crash the US economy. Again, the markets took notice.

See now?

Put simply, US treasuries are no longer seen as a safe haven in times of financial turmoil.

 

OTOH, China has been on a gold buying spree since 2022.

 

 

  • Agree 2
Posted
34 minutes ago, BLMFem said:

Don't know if you noticed but the 2022 drop happened due to Covid, and despite all the whining from the MAGA crowd, the markets did not ignore it.

This time around the drop happened because one idiot at the top started doing things seemingly designed to crash the US economy. Again, the markets took notice.

See now?

That's not true.  CVOID started at the beginning of 2020.  

Posted
17 minutes ago, Mike_Hunt said:

 

They sure ignored two-quarters of negative GDP growth under Joe Biden. 

Funny how Trump supporters excuse Trump for the economic turmoil caused by Covid but somehow once Trump was out of office it became Biden's fault.

  • Confused 1
  • Thumbs Up 2
Posted
4 minutes ago, Mike_Hunt said:

That's not true.  CVOID started at the beginning of 2020.  

And how long did it last? And what about supply chain disruptions and the other consequences of a world economy screwed up by the pandemic?

Posted
2 hours ago, BLMFem said:

The Economist is one of the most respected news and opinions sources on the planet, widely read by heads of state and captains of industry.

So not exactly RT, is it "Frank".

 

PS. Hey buddy, been on a "holiday"? Probably forgot to switch back on the English grammar and spell checker I see. Easy to forget when communicating in your native tongue for a while.

Yes, and Reuters was the gold standard before the internet, butbnow people can cross reference what they're told... and the propaganda can be exposed, I don't expect you to understand that, or even want to, you profile speaks volumes, did you get paid by Soros, or his son who has taken over his legacy.

 

Bleat bleat goes the BPM sheep

  • Confused 1
Posted
15 minutes ago, placeholder said:

And how long did it last? And what about supply chain disruptions and the other consequences of a world economy screwed up by the pandemic?

COVID started in 2020, and the lockdowns began to ease in 2022.    

Posted
Just now, frank83628 said:

Yes, and Reuters was the gold standard before the internet, butbnow people can cross reference what they're told... and the propaganda can be exposed, I don't expect you to understand that, or even want to, you profile speaks volumes, did you get paid by Soros, or his son who has taken over his legacy.

 

Bleat bleat goes the BPM sheep

Go ahead and make the case that a simultaneous decline in stocks and a sharp fall in the price of T-Bills isn't serious.

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  • Agree 1
Posted
22 minutes ago, placeholder said:

Funny how Trump supporters excuse Trump for the economic turmoil caused by Covid but somehow once Trump was out of office it became Biden's fault.

 

Yea...I'm you were raging against the lockdowns in 2020. 

Posted
1 minute ago, placeholder said:

Go ahead and make the case that a simultaneous decline in stocks and a sharp fall in the price of T-Bills isn't serious.

It's the end of the world.  Is your bug out bag ready? 

Posted
2 hours ago, BLMFem said:

The Economist is one of the most respected news and opinions sources on the planet, widely read by heads of state and captains of industry.

So not exactly RT, is it "Frank".

 

I used to subscribe to the Economist.  It's not all that. 

Posted
5 minutes ago, placeholder said:

Go ahead and make the case that a simultaneous decline in stocks and a sharp fall in the price of T-Bills isn't serious.

Stock market rises & falls, it isn't day to day trading....but don't let get in the way of anotjrr hysterical post by the obsessed non American... can we just confirm what country are actually from.... or, as I  expect you will you be silent...

  • Sad 1
Posted

Markets in turmoil again - the world and his dog knows that The Trump Organisation America is not to be trusted. Smart money will try and get as far away from the dumpster fire as they can.

 

https://archive.ph/B7XJq

 

But when prices on imported goods, particularly from China, rise many times above inflation, this will lead to higher interest rates and all the negative consequences for a nation already relying too heavily on credit rather than savings.

The next impacts are as predictable as they are depressing: a sluggish economy results in less job security and lower jobs growth as employers cut their cloth.

Then, as the competition for jobs increases, wage levels fall and people fall further into debt, generating an inter-generational rise in poverty that future administrations will have to tackle or, more likely, ignore.

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