Despite the bloodbath in corporate credit markets, talking heads remain cognitively dissonant as to the reality lurking under the surface of this colossal leap in cost of funds for every firm. However, Credit Suisse is “worried” about the implications of these two disheartening charts expose, suggesting a default environment that might abort the Fed hiking cycle…
Overall, 2015 has not been good for the U.S. equity market, caught up as it was in a vicious circle of never-ending woes. It all started with Fed uncertainty, a strong dollar and slumping commodities, and then extended to geopolitical tensions and global growth concerns, especially in China. Additionally, the U.S. economy, which was growing…
During the day on Monday, the Industrial Production numbers coming out European Union will be the biggest mover of markets as far as economic announcements are concerned, but quite frankly there’s not much beyond that to move markets as the calendar is so light. With that being the case, we have to look at the…
Written by Norman Carter Spill-Over Effects and Contagion In 1933, during the depths of the Great Depression, famed economist Irving Fisher wrote a work that became a classic of economics and is still widely read and cited today. The book was titled The Debt-Deflation Theory of Great Depressions. Fisher was the most famous U.S. economist of the…
Whenever the government intervenes in the economy in order to bring about what it deems to be a more beneficial outcome than would have occurred in the absence of intervention, there will be winners and losers but the overall economy will invariably end up being worse off. Moreover, it is not uncommon for one of…
Successful investors live by a golden rule: what the mainstream financial media talks about is not important. They focus on what they don’t hear instead. So forget about Yellen for a second. Let go of Draghi, oil, the South African rand and Syria. That’s all in the now. But investing is about the future. We are convinced there is…
Market Overview This is the question that all analysts are asking after last week’s performance. My own interpretation is that we are not – yet! Friday’s decline (which could come to an end next week) only needs a few more points on the downside to have retraced 50% of the move from 1872. In spite…
The EUR/USD pair certainly has been resilient lately. We completely wiped out all of the losses from Thursday during the Friday session, as we crashed into the 1.10 level. This of course is a fairly bullish sign, and we have seen quite a bit of recent bullish pressure. The upward candle from last week and…
Those in power never understand markets. They are very myopic in their view of the world. The assumption that lowering interest rates will “stimulate” the economy has NEVER worked, not even once. Nevertheless, they assume they can manipulate society in the Marxist-Keynesian ideal world, but what if they are wrong? By lowering interest rates, they ASSUME they will encourage…
Global developments in finance and geopolitics are prompting a rethinking of the structure of banking and of the nature of money itself. Among other interesting news items: In Russia, vulnerability to Western sanctions has led to proposals for a banking system that is not only independent of the West but is based on different design…
