A couple of minor technical problems called “business” and “life” have now intruded on my increasingly bogged down publication schedule that, in the interest...
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Posts Tagged ‘ Leverage ’
Where’s the Collateral?
A sound system of credit is built on collateral. A doomed system of debt sits precariously on phantom collateral.
The global "recovery" is based not on reducing debt but on increasing it. Nice, but where's the collateral? The basic idea of de...
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The Grand Game of Perception Management
The economy will expand if you believe it is expanding--because you'll be "animal spirited" into buying a lot of stuff on credit that you can't afford.
It all boils down to perception--that's the insight at the heart of the Grand Game of Percept...
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Between Various Rocks and Various Hard Places
The U.S. and European economies are firmly between various rocks and various hard places.
Having stipulated that "Forecasting Is Not Humanity's Strength," I will not make any foolish forecasts that will assuredly be proven wrong, but it is undoubt...
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The Mighty Ben
Treasury yields reached the top of the recent range and appeared headed for a breakout when along came Ben, with his mighty arms outstretched he lifts up the playing field and tilts it, and back down yields went, in spite of the big week of Treasury auctions and the market facing a big wad...
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How Banks Are Using Your Money to Create the Next Crash
In 2008, reckless credit default swaps nearly obliterated the global economy. Now comes the next crisis - rehypothecated assets.
It's a complicated, fancy term in the global banking complex. Yet it's one you need to know.
And if you understand it, you will...
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The Corzine Carol – Updated!
So we have new facts that have come to light in the Jon Corzine / MF Global scandal. After a day of Senate “I don’t know / I didn’t intend” testimony (or should we call it “intendimony?”) we learn that an auditor for CME learned that Corzine knew of customer funds being used to...
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Corzine Testimony Christmas Carol
Jon Corzine’s testimony could have been sung as a Christmas Carol: (Sung to “God rest ye merry gentlemen”) I guess you clever gentlemen Are wondering what I’ll say. Will I cite the 5th amendment Or did I come to play? Well I will tell you everything On this December day. You see, I don’t...
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It’s Your Choice, Europe: Rebel Against the Banks or Accept Debt-Serfdom
The European debt Bubble has burst, and the repricing of risk and debt cannot be put back in the bottle.It's really this simple, Europe: either rebel against the banks or accept decades of debt-serfdom. All the millions of words published about the Eur...
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ZH: Dollar LIBOR mkt hints that Credit Agricole was Bank X
http://www.zerohedge.com/news/dollar-libor-market-hints-credit-agricole-
was-bank-x
66x leverage?!
Excerpt:
And given Credit Agricole's 2nd worst position on Bloomberg's Tangible Common Equity Ratio screen (behind Landesbank Berlin no less), it is...
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Lower growth,higher inflation and higher unemployment is bullish
No reason needed to load the portfolio using full margin with 20 times leverage....
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EU Leaders Throw Europe a Plutonium Life Preserver
The euro system was doomed from inception for fundamental reasons; trying to conjure up "something for nothing" solutions will fail catastrophically, and soon.
As Europe flails helplessly in the waves of insolvency, its leadership has tossed it a life...
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The Endgame: Europe Is Finished
Wow, amazing how ugly things look when the banksters don't have the government in their back pocket to issue a $1 trillion TARP bailout. The article below portrays JPM and BAC as smelling like roses compared to European banks. That's quite a trick. ...
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What a bubble is
A bubble in money-speak, is something that gets bigger as long as there is hot air being pumped in to sustain it all.
Leverage is typically the sustaining source for bubble price rises. But secondarily, there is the problem that the asset itself, what...
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Snookered!
specie, on 01 June 2011 - 04:04 PM, said:that margerine decrease on stock futures
might have been because "they" wanted more leverage on the downside
did you ever think of that?
Uh.....
Nah.
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Question: Why are gold stocks lagging?
Given the rises in gold and the putative leverage--leverage to the price of gold that was supposed to lead to money printing by $500 gold--it is surprising that they still can't seem to get it together. Thoughts (especially non-snarky ones)?
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Great discussion of leverage in ETFs…
Link
The daisy chain of short selling and counterparty risk is huge.
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An essay from January 30, 2009…
I wrote this back at what proved to be the height of the crisis. I had occasion to find it and reread it. Interesting reading in retrospect...
January 30, 2009
I had dinner last night with a guy whose career wandered through nearly a half-dozen majo...
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The Seven Immutable Laws of Investing
The Seven Immutable Laws of Investing
James Montier
In my previous missive I concluded that investors should stay true to the principles that have always guided (and should always guide) sensible investment, but I left readers hanging as to what...
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Actionable Blast from The Past- the October, 2008 Panic
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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Answering The Age Old Question
by Jimi (Stool Pigeons Wire) To my read, they’ve done nothing to answer the age-old question of price. Here they claim: Private Sector Price Discovery: Third, to reduce the likelihood that the government will overpay for these assets, private sector investors competing with one another will establish the price of the loans and securities...
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Hedge Funds and Berserkers Already Liquidated in Masse
This post’s focus is on leveraged traders and funds. In my view there is compelling evidence that the Berserker community has liquidated en masse and exists in recent memory only. Although checks are being sent out to “investors” to dispose of, there are few if any signs that meaningful leverage is being employed at...
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