NOTE: Potpourri - due to technical difficulties was dropped from the podcast. It will return next week.
Our FEATURE today focuses on an Opinion Page piece in the Wall St Journal dated Sept 15th by Daniel Arbess who is the CEO of Xerion Investments, a hedge fund. The timing for such a meaningful forecast is the 10th anniversary of the Lehman Bros debacle and Arbess believes that the fix for the collapse was to pile on more debt and lower credit quality. He cites a report that says that 40% of all US company's debt is rated one notch above "junk". Barron's reports that US equity markets have increased 337% to $27.8 Trillion in the past 10 years fueled by the creation of this massive amount of debt.This combination of factors create an almost perfect scenario for a major market sell-off especially when investor complacency is at a critical high. Other topics include: US budget deficit will hit one trillion by Sept 30th, Corp buy-backs will hit $1 trillion this year, 10 year T Note reaches 3%, Oil prices rebound, Appetite increases for "yellowcake", The ECU still retains negative interest rates,Sessions holds a session with Republican AG's to investigate the Techies, Obama is running for president, Trump is "complicit" in Florence and Predictions are difficult because they're about the future.
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