2018-01-04 — mauldineconomics.com
Grant's thesis is that "In years to come, when financial historians look to pinpoint the precise moment in time when the excesses of Quantitative Easing reached their apex, I suspect that November 15th, 2017 may well be the date upon which they settle... [for example,] Société Générale's overwhelming success of in selling €500 million in 3-year senior unsecured zero-coupon bonds of Veolia, a former water and wastewater treatment provider turned global entertainment wannabe. The unsecured notes were priced to yield -0.026%. "That's right," says Grant, "a BBB-rated company managed to convince investors to pay them, at issuance, for the privilege of lending the company money."...
Ah, but Grant notes, the global financial firmament is beginning to shake, rattle, and roll. He points -- as you have seen me pointing -- to a US Treasuries yield curve that is threatening to invert, and to the incipient seepage of asset-price inflation into the Consumer Price Index (CPI) and wage inflation. (Let's not forget that US unemployment is at a 17-year low.)''
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