Thank you oligarch I appreciate that. You are absolutely correct - that is coming it is just that we are seeing Europe going now - first.
Timing is so hard - QE provides liquidity however it does nothing for solvency whatsoever. So it can buy time and this has assisted the US banks greatly. They have taken the hard decisions and been writing off debt, building the balance sheets back up as they play the yield curve, not to mention swindle and scam as best they can. The States, Municipalities and US government are a different matter.
Growth is gone, PIMCO are right it is a new normal and the old model is broken. Inflation has not happened as a result of all the QE because of the capital destruction. Fear can drive this sky high as investors wake up and want a position. I am set up to prosper and have been playing this for years already. I still find it very sad when people do not get off the road as the truck approaches.
