| Want a transcript? Sign up for our free weekly e-letter, and you’ll get a transcript every week, plus a summary and link to the video: https://www.mauldineconomics.com/go/JM499G/MEC This week, I spoke with Ben Hunt, co-founder and CIO of Epsilon Theory, a newsletter and website that examines markets through the lens of game theory and history. In this edition, you’ll hear Ben and me discuss why the global repricing of interest rates is hitting financial markets like a wrecking ball… ● Why the UK bond market might be a threat to the entire global financial system ● Why the global repricing of interest rates is hitting financial markets like a wrecking ball ● What happens when pension funds get margin calls ● The little-known risk hidden in this $32 trillion market ● The two ingredients that, combined, have created a toxic brew for long-term institutional investors For more details, please read Ben Hunt’s fascinating essay, “A Brief History of the Past 10,000 Years of Monetary Policy and Why Last Week Was a Big Deal”: https://www.epsilontheory.com/a-brief-history-of-the-past-10000-years-of-monetary-policy-and-why-last-week-was-a-big-deal/ ---------------------------------------------------------------------------------------- Video Time Stamps: 0:00 – Introduction 2:58 – Canary in the coal mine: Will what hit the UK bond market spread to the US and beyond? 4:09 – The devastating effects when artificially depressed interest rates start rising rapidly 8:11 – The hidden dangers in this $32 trillion market 11:08 – The two “tricks of the trade” that have wreaked havoc on pension funds 16:42 – What happens when emergency action becomes permanent policy 19:43 – How Wall Street lured pension funds into taking huge risks 24:50 – What could trigger the next crack in global financial markets |
Each week, investors and financial professionals around the globe turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. And for good reason. John is a noted financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the first publications to provide investors with free, unbiased information and guidance—Thoughts from the Frontline—one of the most widely read investment newsletters in the world.
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