This year marks the 60th anniversary since Kafka published his least understood philosophical novel titled “The Fall”. The novel is a series of monologues by its main character (Clamence). Clamence’s […]

The markets seem to be suffering from hyperkinetic activity generated from too much kudzu collateralization, securitization, credit overextension, and central banking intervention. This has resulted  in impulsivity across credit markets […]

Lack of foresight is not a tactical mistake. It is a dangerous strategic error whose price is paid mainly by innocents over a long period of time. In April 1917, […]

In chapter 19 of the Odyssey, Homer writes about Penelope’s encounter with a mysterious guest. “Falsehoods all, but he gave his falsehoods all the ring of truth. As she listened […]

The flowering of the Enlightenment across Europe in the 17th and 18th centuries took place when a diverse group of thinkers questioned perceived opinion. The names of Descartes, Spinoza, Locke, […]

The markets have been used to central banks actions that mitigate downturns (the famous/infamous puts that take the names of central bankers such as the Greenspan and Bernanke puts). Such […]

The external debt of developing economies has more than tripled in the last ten years. Brazil of all countries is selling notes to yield-hungry investors that mature in 2047! Where […]

In last week’s commentary we pointed out that the accumulation of debt by corporations may be behind the market upswing (through shares buyback programs while the fundamentals do not support […]

Corporate debt is at record high. Net equity issuance has been negative for the last few years. The shares buyback pattern is simply staggering. The fact that almost 70% of […]

The extraordinary global increase in the debt-to-GDP ratio requires a growth rate of at least 4% in order for the debt to be sustainable. The unfortunate thing is that such […]