Precipice? - mytrbroadcast.com

Over the recent past, as I’ve taken to pulling the earlier relaunch of MYTR, I explained my decisions for such. One of the main reasons I stated was that there seemed no reason to continually point out reasons for caution when the “markets” did nothing more than accelerate higher and higher, regardless.

Every time there’s been a sell-off of serious magnitude, it has been reversed ever faster and propelled higher time after time after time again. It has reduced my calls to appearing as if I’m nothing more than a broken clock or, even worse, a Cassandra. Yet all those sell-offs happened just as I predicted they would in the face of the entirety of the mainstream business and financial media’s entire apparatus arguing the exact opposite, i.e., ever higher was the only path forward; ignore all else to the contrary.

The reversals that made these sell-offs appear as nothing more than hiccups were not what everyone was told and sold via such media; it was only for the reasons of extraordinary reversals of prior “solid” arguments that the central banks were going to do one thing, then did the exact opposite. The latest was the Fed’s reversal of “shrinking the balance sheet” to, just 10 days later, lay out an expansion of it to the tune of $40 billion that month to start.

You can’t make this stuff up.

Since then, everything has appeared to be going along swimmingly. Then Japan hit, and a tsunami of fear hit the “markets” once again, sending everything into a tailspin. Then, just like the Fed, Japan reversed course, and everything appeared “saved” once again. But the issue was far from corrected; as a matter of fact, it’s been getting worse by the day. Then, just like all previous savings by government edicts of one form or another, Japan found its own “fix.” What did it do?

Well, just like the Fed restarting QE, only not calling it QE (again, can’t make this stuff up), Japan yelled, “Hold my sake!” and changed its bond market rules to avoid a catastrophic banking sell-off. Does the “Silicon Valley Bank” reprisal bring back any memories? It should, because this is what was narrowly avoided just this week, or at least for the moment at hand, because the issue why it happened is still there; only the names have been changed to protect the innocent, as the old TV drama series used to say.

The reason I bring the aforementioned is this: The “markets” have been going up, giving the illusion that everything is “fixed,” but not only has it not, the cracks are now turning into chasms, and they’re getting more intense, as well as more of them, faster, daily.

Now another is hitting the tape, and this one you should really pay attention to: Blue Owl™.

All you need to know about this name is this: it’s a private capital company, which is at the center of compiling issues, and it just halted redemptions (aka locking you out of your money), leaving many Wall Street aficionados aghast.

Private capital is much like the mortgage industry was in 2007. Or, said differently, it has been the funding mechanism for a lot of shady financial markups on balance sheets, making everything look just splendid above a swirling cesspool of truly creative accounting practices and more. Much more.

And now, suddenly, people are starting to notice the eerily pungent odor that usually comes right before the odor turns to the actual brown stuff hitting the fan.

The issue today is, as I’ve argued repeatedly, nothing has been fixed; it’s only been temporarily halted, but it cannot remain as it currently is. At some point, all the issues I’ve been calling to your attention, documenting, and more are now rearing their head, much like when someone argues they’ve fixed the leak in the basement, but in reality all they did was put a bit of gum and tape across the small crack in the 12-inch sewer line that’s under constant daily pressure.

“Fixed” is a relative term, no?

As I’ve also relayed over the years, I remember right where I was when the very first domino of the mortgage crisis appeared back in 2006 with Ameriquest Mortgage. I just had that same gut feeling about Owl. Remember, it wasn’t long after that first instance, Ameriquest, that the rest of the dominoes began to fall, e.g., New Century, Countrywide, Lehman, Bear, etc., etc., etc.

I’m not saying we’re on the precipice of such, but what I am saying is that we very well could be. And just like then, everyone seems oblivious to such being remotely possible, which is why you should be watching ever the more closely for yourself.

As always, we shall see.

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