muses of the moment

January 22, 2014

News from Pimco

Filed under: Economic Crisis, Global Debt, Martin Armstrong, US Government Debt — totallygroovygirlfriday @ 4:42 am

Much more interesting than the departure of El-Erian is two other little tidbits in this article that you may or may not be aware of. Click here.

Over all, investors pulled $47 billion from Pimco funds last year. It
was the first year on record that Pimco had net annual outflows.

This confirms Martin Armstrong’s prediction of capital flight from bonds to something else.

A statement from the company said that Mr. El-Erian would leave Pimco in
March but keep some leadership roles with Pimco’s parent company, the
German insurer Allianz.

Pimco is not about bonds, it is about insurance. The insurance industry is losing money. The insurance industry is one of the many familiar institutions that will have to figure out another way to make money or make much less money in this Great Reset.

Banking, insurance, and global government debt are closely intertwined. A crack in one affects all others.

Business models that worked for the last 50-75 years will not work as they did moving forward. Those that adapt will survive, those that don’t, will not. Bail-outs and bail-ins only buy time, they are not new business models (contrary to what CEOs may think).

Derivatives

Derivatives: “gone, but not forgotten”. Uh, no, that’s “forgotten, but not gone”. In fact, there are more than in 2007.

Click here for a taste of Paul Singer’s speech at Davos this week on the global derivative problem that we still haven’t dealt with. He will offer solutions. gg guesses Mr. Singer doesn’t know that they already have a solution for the next derivative-related contagion: bail in.

Click here for another legal case still going on between JPM and a German transport provider from the last crash.

If only Germany had some physical gold in their possession as a hedge during the next crash. Oh, yes, they asked for it back. gg wonders how that is going…. click here.

Hackers

Filed under: Odds 'n ends, Taxes — totallygroovygirlfriday @ 1:10 am

Hackers, the new barbarians at the gate of Rome…..

Click here for a spot on hacking the healthcare.gov site. Apparently, not only will you have to buy health insurance you can’t afford, or as the Supreme Court said, pay a tax; you will have to dole out a monthly fee for identity protection. Nice….

This should end well.

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