Friday, July 7, 2017

TBTF in action

The richest becoming owners of all property.

These folks, at the top of the hockey stick, have first seat in the debt cartel, they supply the funds courtesy of our government monopoly on banking. So they supply the debt funds on time, volatility remains low, and the market goes mostly up, to match the one year in yields. Their surplus funds ride the market.

But the one year goes up to match the PE also. So our debt cartel system has to watch the curve steepness, keep enough steepness so assets do not suffer sudden sell off.
Kind of risky.

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