Credit Suisse is in big trouble in Europe. Of course they have been involved in money laundering forever. One thing to watch, in my mind, is to see if any of this spreads to the offshore havens in the Caribbean and elsewhere. That is where the super rich and other criminals often put their money for tax havens. If that becomes a potential issue you'll see the govt engage in a bigger bailout of banks than 2008/2009 imo.
Bonds that outperformed the larger bond market last year and have been good all year this year because they rose with interest rates now getting killed because of credit risk and possibility of pausing rate hikes..which is why investment grade bonds (that got killed last year) and short term treasuries are suddenly popping. Nobody knows what the Fed will do because they don't know themselves. Pausing or reversing rates will exacerbate inflation, especially with an incoherent energy policy. If you or anyone you know were espousing the line "debt (sovereign) doesn't matter" and quoting economic illiterates like weenie Cheney (deficits don't matter) should feel free to punch yourself repeatedly. It only doesn't matter if you can print unabated AND stay away from inflation. Over a long period of time that is impossible no matter how often you change how you measure inflation.
At this point, you can't raise rates high enough to combat inflation without destroying the economy and creating a situation where US could default on debt. For indy investors, the traditional "buy and hold" strategy will likely no longer work. You're going to lose money to inflation AND your balance will likely continue to go down. The result for the middle class will be a lower standard/quality of life. As I've said before, Rand Paul has introduced a balanced budget amendment for a number of consecutive years now. It goes down in flames every year by a healthy margin because no democrats and only a few Republicans ever vote for it. They blind you with social/cultural stuff and create Orwellian Goldsteins in Trump, Putin and others so you don't pay attention to the things that impact your life the most. And then as European Commission President said "when it gets serious you have to lie" ...except they have been lying all along. My advice is to pray heavily and get out of debt. In short term it also might be a good idea to find a way to store a few thousand dollars outside of banks. You cannot even go into a bank now and withdraw a few thousand. They don't keep cash there. Imagine what it will be like if a bunch of people need cash.
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