
It’s pretty clear there’s an incredible amount of risk in the system.
And in the future when we look back and say, “It should have been so obvious,” here are a few events that may become famous watershed moments:
1) The $75 billion loan
AB InBev just secured an astonishing $75 BILLION loan to buy rival SABMiller.
This is the biggest commercial loan in the history of the world, roughly equivalent to the GDP of Azerbaijan.
It’s incredible that anyone is able to borrow an amount like this, let alone at the low rate of just 1.1% above LIBOR.
It’s not a stretch to think that we may look back at this and say, ‘that was the top… what an obvious example of how much money central bankers have printed.’
2) The junk bond collapse
Back in 2013, the yield on ‘high yield corporate bonds’ aka junk bonds dipped below 5% for the first time in history.
It shouldn’t have taken a rocket scientist to figure out how absurd that was, but now that the trend is reversing and the junk bond market is stalling investors are losing their shirts.
One hedge fund that had invested heavily in junk bonds just suspended redemptions for its investors, something only really done in times of crisis.
This could be the historical watershed moment that signals the beginning of the end of our massive financial bubble.
3) The POPPY Loan [my favorite]
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