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Gold/Mining/Energy : Gold Price Monitor
GDXJ 96.88+0.9%4:00 PM EST

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To: Julius Wong who wrote (103110)8/28/2016 11:08:12 AM
From: The Barracuda™   of 116762
 
The Giant Volcano Of Uncollectible Capital Gains In Global Bond Markets

…….In short, the global bond market has become a giant volcano of uncollectible capital gains. For example, long-term German bunds issued four years ago are now trading at 200% of par.

Yet even if the financial system of the world somehow survives the current mayhem, the German government will never pay back more than 100 cents on the dollar.

What that means is there will eventually be a multi-trillion dollar bond implosion as speculators and bond fund managers alike scramble to cash-in their capital gains at the first sign that the global bond markets are breaking and heading back to par or below. And it is not just the “winners” who will be stampeding for the exists.

davidstockmanscontracorner.com
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