If the deflationary credit collapse does come we'll get the same disclosure - it'll just come via a different form (bankruptcy!), and you'll like it less because the knock-on effects on our economy will be far more severe.I also want all derivatives forced onto public exchanges, traded with a published bid and ask, and with a clearing corporation such as the OCC in the middle. This will force margin maintenance requirements to be enforced and stop the practice of people writing unlimited numbers of derivative contracts they do not have a prayer in hell of performing on if they go the wrong way on them.
Do those things and the credit markets can clear. It won't stop a nasty recession but it will stop the incipient downturn from turning into an all-on deflationary collapse in the credit markets.CPI is out - up 0.8% headline, up 0.3% on core. WOW!
But now Pimco is saying it, so it might be right. Better late than never I guess!Here's the technical....
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.
The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
Looking for "The Best of Market Ticker"? Check out Ticker Classics.
Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.
The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.
Submissions may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.
Leads on stories of current economic and political interest are always welcome. Our fax tip line is 850-897-9364; please include contact information with your transmission.