CRISIS AND CONSEQUENCES

The Next Financial Calamity Is Coming. Here’s What to Watch.

https://www.nytimes.com/interactive/2018/09/12/business/the-next-recession-financial-crisis.html

Another pocket of concern is the fast-growing market for so-called leveraged loans. Banks make these loans to companies, and then sell off slices that are packaged up and resold to investors, like hedge funds, mutual funds and pensions. The market is much larger than it had ever been, with more than $1 trillion of the loans currently outstanding.

Investors are so eager to get their hands on these loans — because they have adjustable interest rates, they perform well when the Fed is hiking rates — that they’re accepting lower-quality deals. Some 80 percent of today’s institutional leveraged loans are known as “covenant lite” deals, because they offer weaker protections for investors.

So far, defaults in this area have been low, given the strength of the American economy and fat corporate profits. If growth sputters, that is likely to change.

Trumpometer reads mediocre. And sliding.

http://www.yahoo.com/finance/news/week-trumponomics-past-looks-better-future-182104437.html

Is there a way you can sell against it Cliff-e?  If the world is going to collapse, you might as well make some money when it happens!