Deluded currency cultists believe the dollar is invincible

2014.03.17 At the onset of the derivatives collapse in 2007/2008 it would have been easy to assume that most of America was receiving a valuable education in normalcy bias. In 2006, the amount of ego on display surrounding mortgage investment was so disturbingly grotesque anyone with any true understanding of the situation felt like projectile…

Why Ukraine matters more than you think (Or “Only wimps pay their debts”)

2014.03.13 Ukraine, we are told, is infamous for its colorful proverbs and as the title suggests Citi’s Matt King warns that emerging market (EM) bond investors may yet become familiar with more of them in coming weeks. Unfortunately Ukraine’s importance is greater than its economic or even geopolitical significance would suggest. Risk premia everywhere have been compressed…

The shame of Europe’s empty houses

2014.03.13 A new report has revealed that there are currently estimated to be 11 million empty homes across Europe – enough to house the entire homeless population of the continent almost three times over. There are 3.4m vacant properties in Spain, over 2m each in France and Italy, 1.8m in Germany, and 700,000 in the…

The end of Bitcoin?

2014.03.06 Last week, one of the largest Bitcoin exchanges in the internet, Mt. Gox, announced that it was filing for bankruptcy. A week before that, it had been a repository for over $400 million worth of the digital currency, and now it was down to nothing. Mt. Gox blamed a ‘hacking’ attack for the loss…