September 21, 2015
Volkswagen Scandal, Bond Market Risks, and Tech Rivalry
Volkswagen’s Emissions Scandal
Volkswagen recently admitted to cheating on emissions testing for years, following a discovery by the International Council on Clean Transportation that raised red flags with Jetta and Passat models. The revelation has severely damaged consumer trust and regulatory confidence in the automaker. In light of the scandal, one could say—channeling a bit of satire—that Dean Wormer has placed VW on “double secret probation.”
A Fragile New Bond Market
The Wall Street Journal describes the current bond environment as “bigger, riskier, and more fragile than ever.” And they’re not wrong. Today, ETFs and mutual funds hold 17% of all corporate debt—up from just 9% in 2008. With interest rates still low, global debt mounting, and the Fed under intense scrutiny, fixed income investors are finding fewer viable options and increased risk across the board. This is not your father’s bond market.
Millennials vs. Financial Wisdom
According to Bloomberg’s Matt Levine, millennials seem intent on unlearning the hard-earned financial lessons of previous generations. Whether it’s avoiding traditional investing paths or favoring high-risk ventures, this trend could reshape the future of personal finance—potentially for better or worse. As one article puts it: Generation Y may be learning, but they’re doing it the hard way.
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