A Beautiful Releveraging? The Devil Advocates for a Debt Jubilee
Welcome back to 2017, where bad is back where it belongs, that is being oh so good. Inflation? Who cares? Rising interest rates? No harm, no foul. WTI north of $70? Fill ‘er up. Pricey tech stocks. Hit the bid, baby!
The euphoric mood suits this past week’s exercise. The Great Contagion was a huge hit, at least as far as eyeball count goes. I’d like to reiterate my gratitude for your allowing me to publish it as a free report.
That said, the message didn’t go over well in certain circles, which stands to reason. It was not a friendly message for those predicting a recession might occur before the next presidential election, a predictable prediction through which a Mack truck can be driven. That’s all good and well. I anticipated the criticism and its sources.
What was less expected though was a meeting I had with a good friend, a veteran trader. He calmly explained to me that all was well, that I did not have a firm grasp on the ways of the world in which we both live, that place called Wall Street. Recession was not coming. Debt doesn’t matter. And while we’re at it, the bigger the better when it comes to the size of central bank balance sheets. I can safely say there’s nothing as grating as a colleague asserting naivete.
Confirmation bias, however, is a toxicity. So rather than dig my heels in and stick my tongue out at him, I chose to approach the matter as maturely as possible. I explored my contact base for someone who would rebut my premises in a well thought out, composed manner. And I found him. We had a deep, rich conversation and graciously agreed to disagree on some counts.
Full disclosure – my eyes were opened by the process. I can even say that I appreciate many of the counterarguments in retrospect. But don’t take that as a sign that this was an enjoyable endeavor to undertake. Writing this week’s newsletter ranked right up there with a root canal.
But that’s just life. Sometimes we have to give in to pain in order to make forward progress. It beats the hell out of the alternative.
Without further delay, please enjoy this week’s: A Beautiful Releveraging? The Devil Advocates for a Debt Jubilee.
With hopes that you take a moment to question your closely-held truths, and wishing you well,
Danielle
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"" Love me or hate me, both are in my favor. If you love me, I will always be in your heart. If you hate me, I will always be in your mind." William Shakespeare.
6 年Bill Motion, Bill the sources that Danielle has within FED UP turned me on to trying to understanding an area I never bothered with. Long story short she's my teacher.
"" Love me or hate me, both are in my favor. If you love me, I will always be in your heart. If you hate me, I will always be in your mind." William Shakespeare.
6 年Bill Motion, Bill well said and it is for that reason I say Danielle is an excellent teacher.
Business Development Manager XRPayNet Exchange
6 年I have avoided root canal so far. Grandma Jesse taught me to rinse with coconut oil. It seems to help. She also gave me my first silver dollar. She also said, "too much debt will take anyone down - the big boys never factor in the small stuff until they have to write it all down for the bankruptcy lawyer". I wonder if Off Balance Sheet is considered small stuff? Meanwhile, Italy's T2 balances are hitting new highs. You know, the small stuff.
"" Love me or hate me, both are in my favor. If you love me, I will always be in your heart. If you hate me, I will always be in your mind." William Shakespeare.
6 年Danielle, for my part and for what it is worth, stay the course, I get very good vibes from your wisdom. I'll tell you something about critics, they challenge you in public but behind closed doors they know they are wrong and that your intelligence and grasp of financial matters exceeds theirs. When you wake up in the morning and look in the mirror just remember you are not party to the coming"Contagion." So I say stay the course, for what little I count your still the best teacher I have ever had.