We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
Stockman writes, "there are trillions of dollars of assets, from Shanghai skyscrapers to Fortune 1000 stocks to the latest housing market “recovery,” artificially propped up by the Fed’s interest-rate repression. The United States is broke — fiscally, morally, intellectually — and the Fed has incited a global currency war (Japan just signed up, the Brazilians and Chinese are angry, and the German-dominated euro zone is crumbling) that will soon overwhelm it. When the latest bubble pops, there will be nothing to stop the collapse."
It'd be intersting to know bif his and his associated hedge positions are short --and trapped --that would explain his needlessly hyperbolic language. "Talking your book" is far from fraud or unethical --it's simply putting your mouth where your money is. But it's good to know whence the message.
Also, WSJ's editorial editor Paul Gigot is a regular at the Bilderberger retreats, wehere all invitees are sworn to secrecy.
PS, what i was getting at was, his fear of a bubble in the treasury mkt. But a bubble describes that express elevator down when a mkt suddenly loses its bid. Sellers want out, and can't get out --except at fire sale prices. Usually there's too much leverage in the mkt, too. But US Treasuries are the world's most liquid market --a sell-off will be orderly and you'll have a bid --you may lose asset-value depending on the circumstances (what you paid), but you'll have a mkt. Even the close-to-20 interest rate disaster under Carter featured an orderly liquidation in the Treasury mkt.
The short bond funds have been getting creamed --annihilated --for the last year or so, as people acted on such advice as David Stockman's.
The bubble effect is not in the future treasury mkt but in the past and current treasury market, and is ongoing already, and has been for a couple years, and is based on a purchasing-power decline of the dollar --the bubble is a slow-pop keeping itself under wraps, via the US govt holding food and energy off the inflation calculation.