UBS thinks it may be 1994 all over again. Some similarities: The Fed's actions to reflate the...

UBS thinks it may be 1994 all over again. Some similarities: The Fed's actions to reflate the economy post-2008 resemble the easy money policies that were put in place post-S&L crisis; current "lackluster" economic growth mirrors "mini-cycles"of '90-'93; 290 bps plunge in Treasury yields from '07-'12 reminiscent of 400 bps decline from '90-'94; downtrend in CPI over the past five years resembles drop from early '90s to '94. UBS' advice: Avoid "popular convergence trades" such as EM credit (EMB, EMLC), EU periphery sovereign debt (ITLT, ITLY), U.S. MBS (MBB,VMBS), and high yield (HYG, JNK).
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Comments (2)
  • into dark shadows
    , contributor
    Comments (460) | Send Message
    1994 still had a dysfunctional albeit functioning government.
    There was the illusion of a somewhat "Free Market System" and capitalism was still embraced!
    The world is mired in a profligate, big government knows better than anyone / everyone and a Federal Reserve that has LOST all respect and credibility!
    There is no free market system left today.
    Capitalism has been replaced by the progressive chant of social justice for all.
    Equal justice and Individual rights have been perverted beyond anything remotely recognizable!
    And lastly, the rule of law has been replaced by an attempt to rewrite said laws with the Law's of Man, which throughout history has been witness to unspeakable horror!
    May the good Lord watch over this fragile little experiment in freedom / man's self rule we call America
    God save the Republic!
    16 Jun 2013, 08:59 PM Reply Like
  • GizmoA51
    , contributor
    Comments (116) | Send Message
    Would anyone in their right mind create an economic system that out of every 100 people 2 become millionaires or billionaires, 50 live one pay check away from or are already in poverty, 10 can afford a new car every 4 or 5 years and can put enough money away for a comfortable retirement and the rest can afford a new pair of shoes once in awhile along with the ability to go out to eat occasionally? I think not. But this is what capitalism has become.
    17 Jun 2013, 08:54 AM Reply Like
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