The Tax Plan and "un"Reinvestment - Catalysts
We've been pointing out that as reinvestment of the Fed
balance sheet or SOMA cash flows is gradually withdrawn - about $250
billion in 2018 - the market must absorb a rather large amount of
treasury, agency and MBS debt. Add projected deficits if the tax
plan passes and it amounts to $1.3 trillion in net issuance, the
most since 2010.
All it needed was a catalyst. Maybe that happened
Bitcoin, Stocks and Other High Flyers
Back in the day, there were bubbles. Always.
of the first involved tulip bulbs. Introduced from Turkey,
the market came tumbling down in 1637. Other notables including
Sea bubble, Wall
Street 1929 and dot com to name just a few. The greed that
drives them only looks silly after the fact.
The Case for Bitcoin?
Short answer: Because it goes up! And up! And up!
Slightly more intellectual answer: Central
banks are devaluing currency to buy debt, keep rates low and recover
from the financial crisis. Gold is difficult to move and
heavy. Bitcoin is weightless, electronic and untraceable.
however, change the game - see Youbit.
Crypto or FinTech? It Doesn't Matter
itemize some of the insanity around this bubblicious
investment market. Just say 'no'.