Bubbles in the Bath

You remember that the housing market became a bubble and it was that bubble popping that led to the crisis of 2008?

Well what happened next was the U.S. Fed’s QE programs, which are only just now ending. China, since its yuan was pegged to the dollar was the credit bubble inflated by the Fed’s post-2008 pump.

Now the China credit bubble is bursting, and it is because of that the yuan has been radically devalued. The yuan is destabilizing all the Asian currencies, and waves are splashing all over the place.

Michael Snyder says,

there are 74 trillion dollars in derivatives globally that are tied to the value of currencies.  As foreign exchange rates start flying around all over the place, there are going to be financial institutions out there that are going to be losing obscene amounts of money.

I cannot say the “d word” enough.  Derivatives are going to play a starring role during this financial collapse, and so that is a word that you will want to be listening for very carefully in the weeks and months to come.


About icliks

Biding my time in central ms ... yours too, if ur reading this.
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