Behind The Corporate Bond Market's $10.5 Trillion Debt 'Bubble'
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- Опубліковано 9 тра 2024
- U.S. companies now face the highest levels of debt on record - more than $10.5 trillion, according to the Federal Reserve and the Securities Industry and Financial Markets Association, or SIFMA.
The coronavirus pandemic is only part of the story.
The corporate debt market is where companies go to borrow cash. And for over a decade, super-low interest rates left over from the 2008 financial crisis have made borrowing easier and easier. Since then, U.S. companies have regularly offered up bonds for sale, taking advantage of the cheap access to cash.
Sometimes companies can get reckless with debt, and this can result in bonds facing downgrades and low ratings, putting those companies at junk bond status. Overborrowing can result in companies becoming "fallen angels" or "zombie" companies.
Between rising interest rates and inflation concerns, Wall Street is watching the bond market closely and checking the pulse of the U.S. economy.
Here's how the corporate bond market got to these "bubble" levels and just how risky this massive amount of debt may be to the U.S. economy.
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Behind The Corporate Bond Market's $10.5 Trillion Debt 'Bubble'
It seems like Christian Bale and Ryan Gosling is about to get a sequel to their Big Short
Bale definitely will get a sequel
LOL.....how true
I saw a refinance deal where the company lowered its interest rate and will use the difference to pay the dividend, nice creative accounting.
Yup biden market will tank!
Thanks for watching.
"Too big to fail" mentality led to this.
how come?
the CEO does not profit from that
@@burkanottere9692 yes they do dummy. These bonds finance their high salaries. Even if the company goes bankrupt you can't go after the CEO for the money to finance the bond. You can't go after any executives if a company fails because technically that's company debt what do you think corporate raiding is?
@Andy Mills search for AIG and you will see that you are wrong
@@Ben-fx9kx they have no employment afterwards
and in addition they get no bonus their salary is connected to the performance
and in the last step the stakeholders (owners of the company) simply can kick him out when he does something they dont like
so in the end the stakeholders are at fault
@@burkanottere9692 stakeholders don't always have the final say.
They will "Privatize Profits and Socialize Losses."
That's the American business model.
seemed to work well for first 250 years
I don’t think even if the bond market collapses you’d be able to socialize the losses. Too big
Only solution is turning into a Venezuela type scenario. They’ll have to inflate or print there way out of this.
@@MOTU320 wrong, true capitalism wants some companies to fail if it doesn't work. It's your government that doesn't want it to fail and will bailout them to not lose votes. Government in a nutshell.
@@pilot88pro What is that number based on? Certainly not knowledge of history. Ever since Reagan, the US has been on its current path of weakening the middle&lower class&increasing wealth disparity.
@@pilot88pro It did not, because it was not how America worked until 1913.
Watch that video. ua-cam.com/video/PbDhVyGcXcs/v-deo.html
“Given by independent rating agencies”. That literally made me laugh out loud
Lololol sounds like 2008 LOL
Me too. "Independent"
“This time is different”
Reporter: “What’s your opinion on corporate debt bubble?”
Feds/Powell: “Erm... We do watch those things!”
The fed makes those things..
But we are more excited in this "Big Green Button on our HP printer that says Brrrrrrrrrr"
Haha
So now you want government intervention for companies?
This video is heavy edited, do you really think that all he said?
Evolution of UA-cam Ads.
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2018: Skip ads after 5 seconds.
2020: Video will play after ads.
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2050: UA-cam renames AdTube".
Or get youtube premium
@@zugdigitalx UA-cam premium will get ads 😂
@@moonbull3137 you forgot the word never
Or just get an ad blocker if on pc, UA-cam Vanced if you are on android, or give them cash if on apple (apple users love to pay more)
@@ProulxS 👍
You aren't tested until a company you own and believe in is down 30-40-50% from its highs. You will question your conviction, your strategy, your process. The market has a way of finding your breaking point. Nothing tests your conviction like falling stock prices.
The key is knowing what you own and getting the best price possible. Falling prices give you the opportunity to lower your average cost. It’s a gift.
The deeper the correction the greater the chances of new positions and hence clarifications.
@@marianparker7502 It'S not the first time someone had advised on this. I need guide in order to salvage what remains of my DOW stock wrecked by the massive dips. I'll appreciate if I get details with which I can reach Ms Nicole .
Can we please take a moment to appreciate the great quality of the infographics in this video? Its pretty difficult to explain financial concepts.
Right...except their definition of "inflation" is completely wrong, nothing like using infographics to explain things incorrectly.
The real cause of all of this lies back on 15, August 1971 when that dickhead Nixon wanted to manipulate inflation and took the USD off the gold standard and became fiat money which was basically handing the economy over to the elite.
The only way out of this is going back to the gold standard and take the power of the elite back or killing 25 to 50% of the world's population!
I guess they opted for the latter!
Overpopulation solved, climate problem solved, unemployment solved, no more social programs needed, pension fund gap solved, healthcare problem solved, housing problem solved and a shitload of other overhead costs for the elite will vanish as snow before the sun!
@@classesanytime agreed, but going back to the gold standard seems near on impossible. Maybe a crypto currency backed by gold might be an alternative, but even then, I don’t think it’ll be long before crypto is destroyed by an energy conscious movement or quantum computing.
@@Deeptalkers I wouldn't matter if it would be the dollar or crypto or whatever as long as it's controlled by a counterweight and stop it from free floating!
@@Deeptalkers It's also why bitcoin will not be everlasting because it hasn't got a counterweight!
It's a free floating crypto and is skyrocketing in its own bubble!
Sure, many people are profiting from it at the moment, but inevitably it will implode on itself as the USD is about to do!
They can keep bubbles only artificially inflated for so long until demand drops under line X.
Once the first one pops, probably the housing market, all the rest will follow like a domino effect!
If this is bieng aired on CNBC it's already too late
That's what I was thinking.... Panic
It's was late long ago. This is being broadcasted slowly for the complacent, self serving, selfish population. Take advantage of the next couple of months to stock up, jump of some solid stocks for short gains, buy crypto and some physical precious metals. The next few years are going to be very rough.
its already been out for years, corona just made it worse and became an extra excuse for the politicians :)
Lee Piquero FT predicted triple whammy crash of bonds, stocks, and property, around 2021/22. Coronavirus has delayed that but inevitably increased the financial impact after governments went on a debt fuelled give away and are funding old economic ideas as if it's back to normal with a bumper debt increase to fund more of the same policy that got us to the brink. The idea, from some economists, is you can print money forever. And low interest rates keeps borrowing costs down and debt increasing, which helps government bonds. It's insanity but sanity to many economists.
Yep. Bubblevision cheered on the Fed for last 13 years. Some of us have been screaming that whole time. Now, the people will finally see.
Maybe these corporations could pull themselves up by the bootstraps. Maybe hold off on the Starbucks every now and then. Possibly deliver pizzas for awhile. Shop at goodwill. Skip a meal here and there. Idk.
lllloooooollllllllxxxx, you're funny
What?
Let's ignore the myriad of regulations, taxes, and cronynism in this "free market."
@@JK-gu3tl Let’s get rid of alll regulations and taxes then right? I’m sure that won’t backfire. As if the large businesses don’t control the laws and regulation in the first place so maybe it’s fine
@@popopop984 To hell with small businesses right?
"It isn't a problem yet, it's just small"
*economy blows up*
"We didn't see it coming, it happened so fast"
The lll mmmk mmmkk
The lies they tell. . .
This is about to have aged very well
About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?
We fail to recognize that banks are commercial enterprises that are motivated by greed as well. One of the elements that contributed to SVB's demise was banks' over-leveraging of assets beginning in 2020. I've never felt safe putting big sums of money in a bank. In other words, I invest through my financial advisor, receive the rewards, and then spend the money.
We were traveling in the same direction, my wife and I. I withdrew my money over the past two years and invested with her wealth manager. I won't be able to match her earnings over time, but at least I make more. Haha.
@@harod033 Would you mind telling me how to contact this specific coach using their service? Unlike the rest of us, it appears you have figured everything out.
@@godof-ou1dw Interesting that you mentioned it; I completely understand. Look up Ruth Loralann Brennan; she was the subject of a lot of media attention in 2020. I'm not sure if I can say this. My portfolio is managed by her as well.
@@harod033 Thank you for your help. The hunt for your coach was straightforward. I thoroughly researched her before engaging her services. She appears skilled based on her resume.
Everyone: stocks
Jim: STONKS!
i.. i.. mean stocks
buy Bitcoin and hold for 10 years
Stonks is very well used everywhere.
Jim:STONKS!
/
/
_/
/
stock market: /
Elon: STONKS!
Time for another record breaking bailout that leave taxpayer footing the bill.
@EpyonX *ahem* Bitcoin *ahem*
@EpyonX @EpyonX bitcoin would lead to prosperity for middle class because technology is deflationary. There would be no inflation because the government can't steal your money anymore because it's decentralized as well. Also bitcoin would help against pollution and global warming because it would fix our consumerist economies where we waste and have to produce an absurd amount of pollution, which is mainly a bi product of having to keep up with our rapidly increasing debt and inflation levels.
Bitcoin was created by the NSA. All of it will be seized with a single keystroke.
Let's make sure to bailout sh*thole Democrat cities too! Throw some money at Lori Lightfoot over in Chicago! That'll solve things!
@EpyonX its politicians fault tho.
The pandemic is a scape goat excuse, not the primary cause of all of this.
Tell me more
It wasnt even real
Partial shutdown of the US economy in the second quarter
ua-cam.com/video/FOg14FajanA/v-deo.html
Low interest rates and greed are the cause. Companies like Apple borrow cheap money to pay dividends/etc rather than repatriating cash and having to pay taxes on it. The bonds are zero risk because they have more than enough liquid assets to repay them, they just want to avoid taxes.
The main cause is 15, August 1971
If you think the bonds are risky just remember that these companies selling “junk bonds” and living on “red ink” are also selling their stock to idiots at 25 times earnings. 🤣
"Sometimes these companies can get reckless" Sometimes? All the time. They can't help themselves.
It all comes down to greed Vincent. Insatiable greed. How much can they can get away with. Damn the consequences. Keep pushing the envelope. Keep looking for every conceivable way to make a profit no matter who gets hurt or destroyed in the process. Crony capitalism at its finest.
All the time seems like a bit of an understatement. I mean companies exist to maximize profit. They are literally required by law to return value to stock holders. It's our entire economic system. Our material existence.
Right. But they keep shoving down our throats about greed is good and the invisible hand of the market will control and keep ppl in check. How’s that been working out.
Best way to make it is to stay a private company with few investors
Not really. Depends on the industry. But companies with too heavy debt a load will drive down their equity value and stock market price if they aren't producing enough revenue with that leverage. Especially if they have competitors who are doing the same or better without the added debt.
“Cmon... who doesn’t pay their mortgage”
-Lewis Ranieri
lmao that reference
The fed isn’t the black
Great reference and great movie.
I have watched the Big Short probably 10+ times. Love it!
@@CAREERMAN70 definitely a top 3 movie for sure
I'm wondering if people who went through the financial crisis in 2008 had an easier time than me right now. The stock market is making me really worried because I've lost over $27,000 in just this month and I'm not making as much money as I used to. This is making me concerned that I might not have enough money saved up for my retirement since I can't add to my savings.
In a constantly changing market, there are good opportunities to make money even if the market is unpredictable. This uncertain time may actually be a chance to adjust your investments. It's helpful to work with a professional financial advisor or broker to make sure your investments are spread out in different places, which can be good for your overall investment strategy.
You know everything is about to fall part when the Jenga references come in 😂
without the corporate bond market, how could CEO's of failing companies still afford their million-dollar salaries?
Multi million *
wow.. i thought you people were wild capitalists
It's more about propping up zombie companies that then rotate performance criteria to "reward" executives. The bonds allow poor managers to keep on acquiring companies to increase market share but not significantly increasing core profitability or actual value. Confidence displayed by arrogant egotists masks incompetent decision making and they all huddle together in each other's boardrooms ensuring the game is never exposed. The triple whammy of bonds, stocks, and property, falling is coming. The pandemic just halted the timeline, and increased the financial devastation coming, given the focus on insanely emerging with identikit government policies.
Ask the Fedetal Reserve. They caused this by suppressing rates.
IMO if your company goes bankrupt bc you were doing stock buybacks or other vulture moves to enrich yourself, you and the rest of the execs should go to jail.
Leaving interest rates at effectively 0 + 4 rounds of QE is like bringing more beer to a party that started 5 hrs ago.
in the Finance/Insurance World its brining more Coke to the party that started at lunch.
It’s more like giving heroin to a painkiller addict
There's so much debt , that if bonds yield go up as so much as say 3% , the system could very much collapse.
Great analogy
well done
"When you run in debt, you give to another power over your liberty." Benjamin Franklin
True one👍
word
"When you owe the bank 1 million dollars, the bank owns you. When you owe the bank 100 million dollars, you own the bank."
What if America owes you trillions?
These corporations don't. The bail from the airplane before it crashes into the mountainside with their golden parachutes.
Why would these companies not "get reckless"? If interest rates go up they will just file for bankruptcy.
more tax payer bailouts of course.
Bank Corrupt see
@@TripleAstyle1 see that’s where your wrong this isn’t tax payers money that’s funding this this is debt funding debt and the federal reserve just prints more money to keep up with the debt. The price for this is the cost of living will go up, and evidently become to high for anyone to pay for.
@@adolfwasrite7009 is Semite a synonym for Jew?
@@switchbranch8411 anti-Semite is anti-Jew so yea
Sounds like the rich CEO's of these Zombie companies need to pay some company debt.
@@Jacquellynnn In terms of paying down the debt, you're right, but perhaps in terms of accountability it would still be a good thing.
They cannot pay down the debt. They will have to restructure
@@LvyPK i.e. layoff half the workforce.
Thanks for watching.
Why when the government will bailout you.
Who else thinks these CNBC UA-cam videos are underrated?
Kind of hilarious how much better their UA-cam channel is than the actual tv channel. Love these vids but can’t stand more than 30 seconds of their coverage
Ya there videos are really high quality and creative editing
Lol I know. They are usually really good.
Yes
Ikr, their UA-cam channel (which is probably run by interns) is way better in every aspect compared to there news coveragez
You know we are in trouble when the CNBC cheer-leaders are warning us.
I know, I never watch it, but the title was surprisingly honest. Hope ya got some silver
😂
I’m here for the comments. CNBC is too liberal and propaganda for head funds for me.
I’m buying silver and gold with the stimulus.
Yeah ! - neal a.
Yes stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.
There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor.
Impressive can you share more info?
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Just a half a million in profit? What went wrong? 🤔
same as 2000/2008, i think its just a matter of time the stocks start going down.
I don't think so, history never repeat itself.
@@eyelessclowned but man does.
Stocks have stayed relatively the same idk what you’re talking about. Only meme stocks fluctuate wildly but you don’t see google,amazon,apple, Microsoft or any of the boomer stocks changing much if at all.
This Time Is Different. /s
@@eyelessclowned recession is in history
This video explained a lot of info very efficiently, and I appreciate it
This a really good educational video. Kudos to the team who made it.
"what if rates start to go up?" yeah, that's how you know this isn't going to end well. either inflation is going to rip, or the debt bubble bursts.
Well said sir🏆
Or both? I’ll buy gold
@@michaelreilly3100 lol, why would you buy gold? not like you're going to be able to go to the store and exchange it for goods. if that ever happens, you're better off with bullets, gasoline, and non-perishable food.
@@Boxedwaffle he meant Bitcoin.
This is one of the best made video about bond market...whoever did the graphic, is very smart. You can show this to a financially uninformed person, and even he would understand what bond is.
We are about to witness these people walk away with all the money and there will be no accountability. Then we are going to bail them out after they did everything they could to make sure we get nothing.
agreed. well said dude.
How are "we" supposed to bail them out when the government and US households are also deeply indebted?
Just saw the big short I see?
@@vnoriega90 it's happened before in 2008.
@@vnoriega90 The U.S. government pays for things by printing money.
this is what happens when u bail out companies, too big to fail, fail and then instead of letting them go bankrupt we give them tax payer dollars and they just say “oh we don’t need to worry abt bankruptcy cuz it’s guaranteed that the govt will give us cash”
"Independent rating agencies", yeah right...
like like like the rating agencies that gave AAA ratings to subprime backed CDOs?
Independent of the average American
Have you ever played Monopoly? This is nothing like that game....
Thanks for watching.
@@craigpercoco2700 0
But he qualified his monopoly analogy by focusing on "passing go." In monopoly, every time you pass go, you collect $200.
Likewise, when you buy a corporate bond, you collect periodically.
In monopoly you can play deep in debt but once you mortgage everything you are toast and cant beat the guy who is cash king with good revenue each round
@@craigpercoco2700 You’re really that bored, eh?
In short when the bond market goes everything will crumble. Bye bye all retirement accounts.
@Ben X in the run capitalism will fail.
@@hogrideeeeer You spelled socialism wrong
@@josephhsu3221 cry
@Pete B yes because war and capitalism are yin and yang 🔥 😷
@@hogrideeeeer more like war and human nature " are yin and yang 🔥 😷" because that's the way it has been, that's the way it currently is, and that's the way it will continue to be until humanity goes the way of the dinosaurs, and anyone who says otherwise is a delirious blithering idiot.
also in the long run regardless of economic system, societies and empires crumble. would much rather crumble having experienced wealth and prosperity (free markets) than a basket case of an economy, food and resource rations, a tyrannical state in charge of all the aspects of my life, and without the freedom of social mobility (a command and control economy)
The long term are doing well while the short term trade requires precision in its execution but gosh, they do amazing when you're on the right side
Trading is very profitable with the of a seasoned broker managing your trading account
Mrs Bambi Alex is legit and her methods works like magic I keep on earning every single week with her new strategy
Has been handling my account for years now
Yes I'm a living testimony of Mrs Bambi Alex of financial education
She is obviously the best, I invested $3000 and she made profit of $28,000 for me just in 15days
The markets are scary high at the moment, every market is scary high, there’s going to be a crash within the next 2 years, there is no way that it is not going to happen. A correction is needed.
A correction is needed to save the scary crash.
lol same with crypto rn, just waiting for a major crash tbh
There have already been many corrections, but they just re-inflate the bubble. It’s not a correction you should worry about, it’s the debasing of the currency, runaway inflation and the major crash that will come with it.
Still opportunities. Just have to be cautious. Small amounts when you get pull backs.
@@eternaldarkness2094 Yup. Makes sense for us stock markets to go up as much as they have, considering the USD's decrease in value over the past decades.
Im surprised they’re even talking about it
Same! They've been quiet until now... Makes me wonder what's really going on whenever legacy media starts doing their job
@@brockbah2048 I've been warning people about this for a few years now and most people thought I was paranoid.
@@justinwoodall461 Could yo please explain me more briefly.
It’s an I told you so moment. It avoids the lawsuits coming for lying for so long😅It’s inevitable if they’re starting to talk about it.
Predictive programming.
This is a fantastic entry level video for corporate bonds! Well done.
Thanks for your comment.
Like Venezuela, hyper inflation is coming, money won't by anything, people making 35,000 $ a year won't be able to bills or put food on the table.
True - and they’ll make sure to raise the minimum wage and instead of pulling people out of poverty, they’ll push the poverty line down and those in the middle and lower middle will now become de facto poor.
Value of the dollar will be less and everything will cost more.
@@vitaly6312 it’s not that easy though, less consumer spending = lower company valuations. That wouldn’t just affect lower and middle, it’ll crash the whole economy.
@@xXxUrbanNinjaxXx oh I’m not saying it won’t, my point was about the devaluation of money, while the appearance that poor people have been in any way helped by the minimum wage, when in fact the minimum wage would just increase the size of the poor class.
so what should i do before that happens ?
In any other country or situation, inflation was supposed to happen in 2008. This cannot happen, because in such a scenario trillions of mortgage debt would be erased or lost.
The car loan industry would lose hundreds of billions, and so on. That will not happen. They won't let it happen.
This isn't about a pandemic causing a debt bubble, this is about administrations refusing to raise interest rates so that the economy looks good. This created an opportunity for out of control borrowing and inflation.
The issue is there is no risk in business once you reach a certain size, since the government is assuming ALL risk. Businesses have no incentive to get better. Eventually this will all blow up.
So just like the people who lease everything shiny our corporate debt has a shine to it that is completely underwater.
when you run in debt, you give to another power over your liberty. - Benjamin Franklin.
Stock can drop from top to bottom and still be a 60 bagger. All this in 10y. investing is a very long journey where our temperament gets tested. have to have the capacity to suffer for long periods. have lived through the examples above, naming the stock today is pointless.
proper research, good analysis is what you need to make profit in this constant market.
I have tried investing but got discouraged by the constant fluctuations in price.
@@Jme--- That wouldn't bother you or be a problem if you let a coach guide you but bear it in mind that price fluctuations is part of the market but using coach makes the difference.
@@Mcdd7-_- I find myself in similar situation but mine is that i really don't know when to take profit or hold , but have you worked with a coach? what is the experience like and how can i get a good one?
@@christinadixon6974 "Freda Lynn Johnson" is the coach I'm quite familiar, I cant disclose much but I have been working with her since July 2020 and she has helped grow my portfolio by 400%. To connect with her you have to search her name on the web that way you can connect with her on her webpage.
I never understand the relationship of yield and a stock market. I do now, after watching this clip. Thanks
As yields on bonds rise they offer higher returns than the dividends from the S&P 500 index so more people prefer to move their money from stocks(because lots of people invest in index funds) and into bonds for the higher returns.
@@benjaminw2194 don't forget that bond holders get paid before stock holders if the company goes bankrupt
@@RG-qq9eu The bonds that affect stock prices are different though. Usually when you see volatility in the stock market it's because of treasury bonds and not corporate bonds. Your point is still valid since just as corporate bonds provide the safety of being paid before stock holders, treasury bonds have the safety of being backed by the government which has never defaulted on coupon payments.
@Jacky Tan That's a myth. You don't need to take on a high risk to get a high return. You just need to know what you're doing.
@@benjaminw2194 I don’t understand that. Since the bonds pay a variable rate what would really justify all that hassle. Bond rate goes up for 6 months then just goes back down to normal or even less than normal?
When nobody expects it, that's when it will hit
Actually, several people predicted 2008 and some of them hated the fact that nobody listened to them
@@maxwelljames3573 yup. Well be forced to watch this play out. I’m 19 and it’s sad that there will be no stable world for my future kids. Watch Tim Dillons video called “ The American party is over”.
So until all you doom and gloomers stop calling it, it won't happen since there's still people expecting it.
@@coolguy1952 it’s just a debt bubble built off cheap credit. Not doom and gloom. All of our politics is fake and have no real depth and connection to our future. But I agree that there’s no point in sitting with anticipation. All we have is our experiences, so take advantage of the time you have.
@@kkandola9072 hell yeah, this is the life we got. And a life lived in fear is no life at all. God bless you.
Even with the availability of different trading options in the market like CRYPTO, STOCK,FOREX etc. It can still be very possible for one to make loss unless they do have the proper skill to do so.
Absolutely right, few years back I recorded series of losses, it's a good thing that I can now make a tangible profits in the market with a sensible investing routine even when it seem difficult and nearly impossible.
Well, Stocks are more long term for me on the other hand crypto and bitcoins is having a rush hour.
Hey Jake, I would really like to have an insight to this skills of yours because my portfolio shows little to no progress.
@@Ilme-AALIM I was able to do that through Mr Larry.
@@samuelbarth-ibe6612 Okay, can one reach him online?
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0:05 If I don't hear Jim Kramer from Mad Money say "Stonks" why live? 😂
At least he is not saying buy Bear Stearns.
Video in a nutshell:
When things go bad, they go really bad
Excellent video, I learned a lot.
I called the last financial crisis...
How did you know?
The UA-cam algorithm recommended me a video 👌
Its not debt, its 'leverage'
:P
We will crash at some time. Thing is, until that happens we will continue to go up and we don't know when that will be
Very educational video, thank you
Between the trillions that are being printed and this corperate bond mess, it seems like the whole financial system is going to collapse under all of this debt.
it will and it will create a whole with so much financial gravity that markets everywhere will go down with it, in one swoop or a tumbling catastrophe
Let alone the government bond mess that is close to 3x times bigger than the corporate one.
It won’t. The authorities control whether or not the financial system fails. None of it is real, so why hasn’t it already failed? The working class continues to work for the least amount of money, least amount of benefits and least amount of respect and dignity. They don’t quit their jobs - they’re zombies.
“There is a bubble, call vennett buy 50 millions in swaps. What do we have, garibaldi 4”
Triple B
ITS the SAME THING!
But I'm a stripper and my lender said I can own 5 homes just fine?
@@JM-kv2kn Hey I knew a stripper in Fl, she took home a solid $30k a month cash, she was amazing btw.
How do I find a list of the zombie companies and high yield bond companies? Those are the stocks that are doing the best atm. Any help would be appreciated
6;20. Love how he says “pandemic era”... this isn’t over yet seeing as I am still not free to travel and live my life.
Democracy.have.a.bad
Begining.and.this.the.worst
Ending.every.one.pay.the
Price.for.the.theory.and.
Ideology.of.the.idiea.that
Make.the.goverment
Powerful.stupid.not.
Studying.cause.and.effect
Phycology.in.every.thing.
Runing.a
Goverment.is.not.just.about
Making.money.by.any.means.necissery....china.evergrand.was.a.means.necessory.
To.defaulting.
Thanks for actually showing something interesting.
5:34 Ford, Kraft, and Macy's dancing at the cliff joyfully having a good time.
Same with GM, VW and most fossil fuels energy company
I can't barrow at .5 percent interest. I should become a corp.
yes
I can't barrow at .5 percent interest.
And neither can Sears.
Corporate debt isnt that cheap. Still they are propped up and executives do the best in the end
Corp is short for corpse.
Its impressive that you guys are actually reporting on this
This is basically what happens when corporates/individuals are above the Government. There's no risk at all. If the bubble burst, the US government will bail out those "too big to fail" corporates.
I like how China is going with "There's no such thing as too big to fail".
Well, they are still supporting their largest companies with huge incentives making it less likely they will ever get into such a situation.
@@DesertCookie he's a wumao, trying to gas up china at our expense. Called soft propaganda
Yes, that's why they've targeted entire world to collapse!
Interest rates have been rising the past couple weeks and making the stock market pretty volatile. I wonder what may happen if yields go up to 2%.
10 yr treasury is skyrocketing up since q4 2020. We are basically back to the beginning of covid
Good video. I actually learned just now what the meaning of junk bonds is.
Trust me anyone watching this right now is in search for innovation that will change the way we work,and only the new age dream traders are willing to share and not dribble.
Sounding more like someone who is not scared of the global economic doom that has be fallen all nations. lol
Swim out of your debt trap by all means, best way remains to invest in assets.
Of course i am not scared of any global economic doom, most of these experts are obviously running a decentralized system with new tech, they're only willing to talk to who is ready, I know a guy tho.
Consultant{.}eltonstephens{1] (a) Gee""""(m)(a)(i)(l){.](c)(0)(m)"""'"
Nice trading platform I must say... I have seen his(Mr Elton) trading algorithm and portfolio set ups Amazingly standard.
When to start buying LEAP puts
Probably at least a year from now at this rate.
So you are damned if you invest (it might go bust) and damned if you don't (inflation will eat up all your money)? What a lovely thing to know, thank you.
Put it in an s&p 500 index funds because it's little bit safer
NOBODY
CNBC : Here's how the next crisis will happen
Panic!
The more insight and information you have to help understand and manage risks, the better off you are
Don’t listen to the media! They create panics, so retail invest will sale. And the big guy can buy the stocks cheap!
I guess I'm nobody then. I would rather know about the hitchhiker with a hidden pistol and know to not pick him up then feel the fake delusion that everything will be great forever.
@Josue Vela Castillo they are actually correct. They however made it seem the whole system is going to fail. Some companies will some wont
I learn a lot from this video!!
We need to start raising interest rates, even a quarter of a percent. Start forcing debt reduction. We are in a recovery and things are getting better. Now is not the time to provide more aid, but to prepare for the next downturn. GE has the right idea, 35 billion debt reduction in 3 years.Remember debt is risk, you can wait anything out if you don't carry debt.
“They’ll do it for everyone to panic just for the Suit and Tie”
The Federal Reserve caused this by suppressing rates.
Besides the Fed, who is buying these bonds when they're issued, in other words , who has the cash to spend on bonds, or is borrowed money being used to buy more borrowed money?
Thanks for watching.
Banks, pensions, retirement accounts. Anywhere with investments probably owns some amount of corporate bonds
Lol wow, this guy figured it out. This is just a balance sheet scam. But people are too dumb to understand balance sheets so it could go on for a few more years.
@@clinthulsey1712 what
Good. Keep going and see what happens.
The CEO of those zomby companies are the one getting richer and richer by borrowing more and more money in the names of those said companies.
They would've put madow on this but they needed views
Only one thing to understand no budget is a huge mistake .
They don't care they know the government will bail them out
@@porkypine602 lol our government doesn't even have a budget
Successful people don't become that way overnight. What most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time.
Yeah! I agree with you sir.
If you want to be successful have the mindset of the rich, spend less and invest More. Don't give up your dreams.
@@christophercook7170 People come here with the aim of chasing money more than knowledge and that will damage your progress, trust me. Chase knowledge first and I promise! The money will follow you just like it's following some of us now.
@@davidmike6847 That's very correct sir!!
And that is why most of them end up losing they money to scammers.
Don't be in a haste to invest. Know what and who you are investing to and be sure that the person will deliver before investing.
“In 2018 we couldn’t predict a global pandemic”...
Bill Gates; “what am I to you”?
Debt is always the trigger of economic crisis or recession. The last one was because it was ridiculously easy to get a mortgage via subprime loan which led to housing market bubble pop. Now we have gov and corp debt beyond ridiculous, the next recession will make the last one look like the vaccine reaction versus the cytokine storm from covid infection.
independent rating agencies. LMAO INDEPENDENT AHHAHA
Ikr
Seems like a very *"easy oahsy"* _alright on the night_ sort of approach to such a massive pending problem.
You could say the potential bubble is benign, for now.
Ken Griffin: hold my shorts.
A consequence of an education system that gives financial literacy a low priority.
This man spitting straight facts
And this has what to do with corporate debt?
just greed
LIVING ON RED INK.THIS HAS BEEN GOING ON THE LAST 60 YEARS.
Thanks you for giving.ขอบคุณมากครับ.เดินด้วยกัน จับมือกันเดินครับ.
Some more Synthetic CDOs? Also, they are complicated products, so that they are not always correlated.
I just liked a news report from the main stream media...
I might not be able to talk tomorrow...
Agreed. NBC sucks cause they love Hiden Biden but they do a good job on these videos.
Except their definition of inflation is WRONG. Inflation is an expansion of the currency supply. Higher prices are a potential consequence.
Gold and silver mining shares look cheap and they have dividends 👀
NEM
Damn even cnbc is stretching them to 10 mins. Need that ad revenue.
Essentially the global/US corporates who’ll win at the end of this are the ones who were prudent with their debt requirements.
Generate cash and don’t have to pay others capital + interest back = winner.
Then why do I hear about the upper management taking God like salaries?
Because the Fed has suppressed rates so low that it incentivizes borrowing cheap money to buyback stock. That inflates the price of the stock. Corporate board members then cash out options on stock that is artificially high. It is the Federal Reserve!
@@josephpeeler5434 who is -letting- them take god like salaries.
The investor's investment is not to go to their God like salaries.
Who is agreeing to this?
This is irresponsible.
This is bankrupting America
@@josephpeeler5434 second.
Buying back stock should not increase the value for stock.
Who did this non sense.
Companies love playing Jenga.
Corp bonds have covenants which should be explained and I am waiting for this point to be discussed and I'm still half way into your program.
ที่ทำเพื่อจะได้คอนเน็คซ์ กันแบบสอดรับกันได้ดี กว่าที่ผ่านมา เชื่อมต่อกันได้ในทุกๆแผลตฟอร์ม แบบไม่มีเงื่อนไข.ครับ เพราะมันจะเร็วโดยไม่ติดขัดครับ