BTFATH: Party like it's December 31st and the bonus cleared
Wolf Street via MW, November, 19th, 2014
"The signs are everywhere, after years of central-bank collusion to douse the world with free money: historically low yields even on the riskiest cov-lite junk bonds; corporate profit margins at the upper extreme of the range; record valuations of stocks
Junk bonds are enjoying the most extraordinary bubble ever.
As long as cheap new money is available to service or pay off old debt, defaults are rare.
This is the new theme: we see the problems, they’re everywhere. We track them, we chart them, we understand them, we know they’re huge, and denying or rationalizing them would make us look silly, though plenty of folks are still denying and rationalizing them. There will be a reset of some sort, these crazy valuations will unravel, corporate profit margins will revert to the mean by overshooting it, defaults will cascade through the system, trillions will go up in smoke.
Profits now. Apocalypse later"
