Turtles crash from time to time. They still remain turtles. As Marc Faber has said today on CNBC, yields can only go up so far. So did Rick Rieder, Edward Lambert, etc., etc..

If yields explode upward, our financial system will be in big trouble.

So Trump is just Cheney reborn. Deficits don't matter. As long as Wall Street and energy companies get their fix, it is business as usual. Didn't Trump run on a different platform than that?

It seems as though fiscal stimulus in the Great Depression was a mixed bag. Many families were grateful for the lifeline that work programs brought. But the ultimate result was not much job creation. So, WW2 was the financial answer. Now, WW3 cannot be the answer, Jeffrey. Your analysis is accurate but solutions seem hard to find, other than Helicopter Money, unsterilized, as advocated by Kyle Bass.

And don't forget, Marc Faber just said there will still be a cap on long bond yields. Too much demand for them. He doesn't believe increased debt will help America.

A surge in debt is what we needed? Seriously, Tyler? Yes, Wall Street knows Trump could create more bonds, the new gold, if that is what you mean. But there are so many better ways to balance the imbalance between rich and the rest of the people in this nation. Helicopter money would be better than more government debt. So, would getting the people who make most of the money to pay for it. Or if Wall Street wants more government debt, force a Tobin Tax or some way so the people can benefit from more debt, by offsetting much of it.

The Fed should probably raise rates. This zero rate mentality is why Trump won. At what point is doing the same thing over and over counted as being stupid?

Labor loses again. When will the capitalists realize that they are destroying their own prosperity with greed? They have to throw labor a bigger bone. Nice chart.

Nice chart. Yes, not only are excess reserves negative but so are yields on many bonds. It is interesting that Sweden is not having much success generating inflation and it would seem that raising rates would give banks the incentive to lend and would generate inflation more successfully. That is counterintuitive but negative is not so cool anymore. But with so many reserves on the banks' books, I think the central banks fear unleashing the lending from that source, if they stopped paying the banks to park at the central banks.

I don't know about stocks, but bond prices are based on massive demand. I think the author should look into this. I write about it and I think bond demand is increasing.

As Edward Lambert said, the Fed missed the interest rate cycle. Deflation is a real possibility if his calculations are correct. www.talkmarkets.com/.../edward-lambert-on-bond-demand-the-coming-recession-and-new-normal