If this credit bubble ever pops......

 it’s going to be the most catastrophic market failure that anyone has ever read about -- but let’s hope that doesn’t happen,” Spitznagel, Miami-based Universa’s chief investment officer, said Thursday in a telephone interview. “We’ve gotten ourselves into a tough spot.” 

Spitznagel, 51, insists he’s not a “doom and gloomer.” He’s long been critical of central banks keeping interest rates near-zero or even negative, which he says has propped up asset values and encouraged excessive borrowing.

2021 book “Safe Haven,” 

Bloomberg 3 June 2022

https://www.bloomberg.com/news/articles/2022-06-03/black-swan-investor-watching-for-greatest-credit-bubble-to-pop


Spitznagel, a former trader, is a protégé of Nassim Nicholas Taleb, the author of the 2007 bestseller, “The Black Swan,”

https://englundmacro.blogspot.com/2020/02/basically-he-says-he-makes-far-out-of.html


Most economists argue a contraction is unlikely in the immediate future,

... given the continued strength of the jobs market and the more than $2 trillion in excess cash on household balance sheets.  

Bloomberg 4 June 2022

https://www.bloomberg.com/news/articles/2022-06-04/us-recession-is-avoidable-if-fed-is-able-to-thread-the-needle


Consumer spending remains strong as households spend down excess savings amassed during the pandemic.

But while this trend alone should be sufficient to prevent a recession, it also will continue to put upward pressure on inflation.

Jason Furman, former chair of President Barack Obama’s Council of Economic Advisers, Project Syndicate 31 May 2022




Kommentarer

Populära inlägg i den här bloggen

Det svänger fort på räntemarknaden

Fjolåret blev strålande för flera av de största fondbolagen

Börsen i Stockholm och New York 4-5 augusti 2024