Fear Index November 2012: The Faustian Bargain
US M3 grew by another $46 billion in October, reaching an estimated $14.8 trillion. At the same time the gold price weakened, taking a small break after the substantial run-up in September. As a result the Fear Index remains above the significant 3% level, with the 21-month moving average also moving higher.
US negotiations over the fiscal cliff have for the most part kept the recent significant spike in student loan deliquencies out of the headlines, though Bloomberg did report on this in its "Chart of the Day" feature last Thursday. As the linked to chart shows, delinquency rates in this $956bn market have reached levels reminiscent of previous debt bubble crashes, and highlight the almost Faustian