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Eerie calm echoes 2007 credit crisis

Bloomberg/John Authers/9-8-2021

photograph of a pyramid shaped sandpile illustrating angle of repose and also vulnerability

“When markets get dull, it is an old standby for financial commentators to say that they’re too quiet.”

graphic image of a book and reading glasses A Good Weekend ReadUSAGOLD note: Authers sees danger lurking in the bond market – and not just for U.S. Treasuries. He questions if the central banks are digging a deeper and more confining hole of “permanently high levels of debt, forcing central banks to continue being lenient.” He sees the calm in the credit market as “stupefying … legitimately terrifying” and likens it to the summer of 2007 just before the credit crisis erupted. While reading this analysis, we were reminded of John Mauldin’s reference to a Brookhaven National Laboratories study of sandpiles and their limitations.


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