We have been warning for months that high-yield bonds have decoupled from equity markets, just as they did in 2007/8, and the credit cycle’s turning will inevitably flow through to crush the only thing left supporting stock valuations – the irrational non-economic corporate buyback-er. However, as we detail below, time’s running out and it’s getting tougher out there for our QE and ZIRP-coddled corporate junk-bond heroes.
You Are Here…
There’s not really much to say when you present something this self-explanatory…
Looking at this, I can imagine that I hear the echoes of a demonic voice declaring, “Release the Krakken!” and cackling with evil glee…
No problem! Just hand out more sub-prime loans for homes, cars, phones, etc. then add a few trillion in “QE” money and everything will be fine, right?
Is anyone else AMAZED this charade still working?