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Looking for yield? Be careful what you ask for…
Every slick Wall Street operator is hawking junk bonds and leveraged loans as the ultimate drug for yield-starved investors – those seeking "juicy returns" in an otherwise risk-saturated bond market.
What they'll find is suicide by credit overdose.
I'm not surprised we've come to this point.
Now, those who know me know I'm not a big fan of the U.S. Federal Reserve. Acting as Wall Street's un-official "drug pusher" for decades, it went hog wild post-2008, dispensing low-rate, cheap, and always freshly printed money at grotesque levels.
As a result, today's "stimulus-addicted/Fed-supported" securities markets – thoroughly embroiled in bubbles – have crossed the Rubicon of debt and are now limping toward their own suicide, as you'll see.
But it doesn't have to get you.