Finance & Money

Is “Dr. Copper” foreshadowing a stock market crash just like it did in 2008?

March 19, 2014
2014.03.19 Is the price of copper trying to tell us something?  Traditionally, “Dr. Copper” has been a very accurate indicator of where the global economy is heading next. For example, back in 2008 the price of copper dropped from nearly $4.00 to under $1.50 in just a matter of months.  And now it appears that another big

Deluded currency cultists believe the dollar is invincible

March 17, 2014
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”)

March 13, 2014
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

March 13, 2014
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

Economist warns of collapse risk: “Will not allow life to continue as we know it”

March 12, 2014
2014.03.12 Earlier this week we noted that an invasion of the Ukraine by Vladimir Putin would likely lead to a complete destruction of U.S. stock markets. It’s not so much the invasion force itself, but rather, the economic maneuvers that would come with it should Russia take this course of action. Well known economist and founder

The Chaori corporate bond default and financial stability

March 11, 2014
2014.03.11 Shanghai Chaori Solar Energy Science and Technology Company has failed to make an interest payment on its corporate bonds in the first corporate bond default in China. This default has caused quite a stir among analysts, many of whom view this as an opportunity for China’s corporate bond market to enhance its risk pricing mechanism. This

Guns, ammo and other great ways to fight inflation

March 6, 2014
2014.03.06 Сast your mind back to the fall of 2008. Lehman Bros. had just failed, and for those in Washington, it was thought all the banks were about to go up in smoke. Of all the radical policies that were enacted in response to the crisis, one of the stealthiest was the Fed’s decision to

The end of Bitcoin?

March 6, 2014
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

Why Asian economies are not about to repeat the 1997-98 financial crisis

February 26, 2014
2014.02.26 The business press is full of dire predictions about sudden capital outflows from emerging economies, with a growing list of ‘fragile’ countries. Few commentators can resist making some reference to the disastrous 1997-98 Asian crisis, just to add an element of frisson to the story. But a repeat of 97-98 is extremely unlikely. In recent

6 Financial monsters that have only gotten bigger after destroying the economy

February 19, 2014
2014.02.19 Before the crash of September 2008—the worst economic downturn in the United States since the 1929 crash that marked the beginning of the Great Depression—most Americans had never heard the term “too big to fail.” But that term became all too familiar when hundreds of billions of dollars were set aside to bail out