If the deflationary credit collapse does come we'll get the same disclosure - it'll just come via a different form (bankruptcy!), and you'll like it less because the knock-on effects on our economy will be far more severe.I also want all derivatives forced onto public exchanges, traded with a published bid and ask, and with a clearing corporation such as the OCC in the middle. This will force margin maintenance requirements to be enforced and stop the practice of people writing unlimited numbers of derivative contracts they do not have a prayer in hell of performing on if they go the wrong way on them.
Do those things and the credit markets can clear. It won't stop a nasty recession but it will stop the incipient downturn from turning into an all-on deflationary collapse in the credit markets.CPI is out - up 0.8% headline, up 0.3% on core. WOW!
But now Pimco is saying it, so it might be right. Better late than never I guess!Here's the technical....
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
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