Author Archive

To process what is transpiring in the world, we should focus on several stink bombs: Europe, the Anglo nations (US/UK) and Asia (primarily China). Today’s focus is the first two. Europe  is front and center at the moment. Speculators are now attacking the Euro, not just covering carry trades.  Now,  I don’t diminish the implications of...
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Commentary has been emerging as to what to look for if a true financial reform movement gets going to deal with the questions of gambling at taxpayer expense and restoring sanity to the financial system.  There is a working paper by a group chaired by Paul Volcker that lays out most of the sounder principles....
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In keeping with my primary theme of following developments on the sovereign credit risk and endless backstop front, we go straight to the PIIGS (Portugal, Ireland, Italy, Greece, and Spain).  The EU sent out another disclaimer to PIGGS member Greece,  warning that no fiscal bailout will be forthcoming. Elsewhere the Dubai bagunca (mess) appears...
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Senator Bunning to Weekend at Bennies: “In short, you are the definition of moral hazard.” Watching Ben Bernanke slip into his non-responsive and obnoxious rope-a-dope routine in the Senate hearings reminded me of the old Arab proverb cited in today’s title.  Indeed public opinion toward Ben is not at...
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Mike Reiss wrote a piece describing how market manipulations work, in this case in the metals market. He uses the example of Sumitomo. The basic idea of this can easily be extended to other markets as well, including I believe stock market indexes and currencies. In fact, if one has the firepower, numerous markets...
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The latest iteration of the road to serfdom is out, and it is a doozy.(WSJ) The Deed for Lease Program,  will offer borrowers who fail to complete or don’t qualify for a loan modification or other workout to deed their property to the lender in exchange for a lease. Borrowers-turned-tenants will...
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“Anyone who proposed giving government guarantees to retail depositors and other creditors, and then suggested that such funding could be used to finance highly risky and speculative activities, would be thought rather unworldly. But that is where we now are. It is important that banks in receipt of public support are not encouraged...
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I offer several blasts from the past in their entirety, specifically what I was writing and doing during the October-November Panic: November 2, 2008 Actionable One of the big questions of the day relates to the level of oil. The more expensive or marginal oil currently in production costs about $80.  Prices below that and production...
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I offer several blasts from the past in their entirety, specifically what I was writing and doing during the October-November Panic: October 19, 2008 Actionable There are lots of stories about indiscriminate panic selling and liquidation during the Crash. The larger question for those who may be opportunistic is to gauge if even more is to...
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I offer several blasts from the past in their entirety, specifically what I was writing and doing during the October-November Panic: October 14, 2008 Actionable The Crash clearly had all the earmarks of one of the greatest leverage unwinds in history. Although it has been described as a hedge fund driven event, there is lots of...
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I offer several blasts from the past in their entirety, specifically what I was writing and doing during the October-November Panic: October 10, 2008 Actionable The market has now put in the worst seven day crash sequence in history. It ranks as a slower motion version of the 1987 market crash. There is now talk that...
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