Episode Transcript
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Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski got.
Speaker 2 (00:16):
Some funky things happening in the bond market, kids. And
I'm not just talking about here in the United States. Okay,
we've obviously watched our bond yields rise, and it's almost
like they're teetering on a tight rope right now. They
have decided which direction they're going to go, and I
think a lot of it has looking at this big,
(00:37):
beautiful bill on how this thing is going to pan out.
But what's happening in Japan is off the charts. Their
bond market is on the verge of collapse. They can't
even sell their bonds at this point in time. They
had a very very ugly twenty year auction, the worst
(00:58):
since nineteen eighty seven. I want to take it back
to the nineteen eighties. Japan was going to take over
the world in the nineteen eighties, taken over the world
that they they I mean they brought up all Rockefeller centered.
I mean that the value of Tokyo real estate at
one time was valued than all the real estate in
the entire world. I mean, it was crazy for a
(01:20):
period of time until it wasn't any more. They got
they've got major, major issues that are going on. You
actually even have some of their people saying that our
fiscal situation is worse than Greece's was back in twenty ten.
Now you know that might be true, There's no doubt
(01:41):
about that. As far as their debt to GDP ratios. However,
it's still Japan and their economy is much much bigger.
A lot of a lot of undercurrents and weird things
that are taking place out there, and people are starting
to notice about deeper issues with the financial market, said
(02:07):
the CEO of City Group Come Out, Jane Fraser, saying
we are entering a new phase of globalization, one less
defined by cooperation and more by strategic self interest. Long
held assumptions are being challenged, not just by tariff announcements,
but by a deeper, confident shock. The near term impact
(02:27):
is already being felt, and the long term trajectory is
being written rewritten. Excuse me, in real time again, nobody
knows what's going to happen next and this shift, does
you have greater risk when a various different markets without
a doubt Jamie Diamond Jamie Diamond yesterday said that markets
(02:52):
and central bankers right now under appreciate the risks that
are being created by US deficits, tariffs and various different
to other international tensions things happening around the globe. And
I quote him, we have huge deficits. We have what
I consider almost complacent central banks. You all think they
(03:15):
can manage all this. I don't think they can. My
own view is people feel pretty good because you haven't
seen the effect of tariffs. The market came down ten percent,
it's back up ten percent. That's an extraordinary amount of complacency. Again,
I see it as well. I see it as well.
(03:37):
And yeah, you know the old something wicked this way
comes storm clouds out there. You need to be paying
attention to this stuff. We do, we do, but again,
the amount of uncertainty that it is out there, I
would continue to expect quite a bit of volatility, quite
(03:58):
a bit of volatility. I don't think the volatile utility
has gone away by any stretch of the imagination. Watchdog
on Wall Street dot Com