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Strategies & Market Trends : Winter in the Great White North

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From: teevee11/23/2016 10:45:30 AM
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pretty grim in the context of European elections coming soon (first Italy and then France).....

http://www.caseyresearch.com/articles/why-rising-interest-rates-could-be-potentially-lethal


there has been a massive sell off in the bond market and it is a significant portion of those funds that are fueling the record highs in the markets. As Casey points out, the impact on rising rates might have on derivatives could be what triggers a black swan event that dwarfs the 2008 collapse. For example, what if Italy and France vote for leaving the EU and their debts become payable in new Lira and new Francs? Would that trigger a bond market collapse? That would likely be instantly followed by derivatives counter party defaults and collapse of the international banking system.
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