Small Bankruptcies Occurring Daily

Beware of the junk bond bubble! Whether it’s the Dutch sports car maker, late-night TV advertising law firm or small mortgage brokerages over indebted firms are declaring bankruptcy daily.

While none of these firms were large enough to hit our Junk Bond Bubble Dosimeter, they are nonetheless endemic of the reason we created it.

The Fed’s irresponsible monetary policy (six years of 0%) and a $4 trillion balance sheet, have sent false signals to business people, who created and expanded businesses, which means there’s now too much capacity in place. Much of that capacity has come to be on the back of loans which won’t be fully repaid should the economy slow. We’ll continue to update the Dosimeter, so check back often.

On Christmas Eve, we here at Trader Skillset wish you and yours a Happy Holiday Season, and we have some big things in store for 2015.

The time zone we reference on our charts is Pacific Standard Time. Therefore, the U.S. cash market opens at 6:30 AM PST and closes at 1:00 PM PST.

About The Wolf

Twenty years is a long time to be involved in the trading business. Through many battles in every asset class known to man, knowledge has been gained; and, this project is a way to share that knowledge. The Wolf is a big fan of repeatable market work, or the creation of a “process.”

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