Pain Ahead For Markets As Interest Rates To Rise "For Generations To Come" | Chris Whalen

Whalen says the cheap-money era is over: the 10-year Treasury yield (the US government's 10-year borrowing cost) is heading toward 5.5% or higher.

He is shorting consumer lenders because credit costs (banks' losses on bad loans) should rise as stretched households keep spending.

Halving the federal deficit each year would lower yields and lift stocks, but he expects a bond-market crisis to force discipline first.

He is repositioning into energy, gold, and silver, arguing central-bank buying and yuan-gold settlement are restoring gold as the chief reserve asset.

He expects new Fed chair Kevin Warsh to stay hawkish until Treasury stress forces the Fed back into buying bonds.