Hypnotized by Dreams of Utopian Placebos: Subpar Performance in an Age of Diminished Expectations, Part I
We are dreaming. We desire utopias. We treat ourselves with placebo drugs and we are hypnotized by all of the above. The symptoms started in Japan in the early 1990s. It has been called Japanese malaise and it seems that is spreading. Subpar GDP growth rate, interest...The Groom Still Waiting at the Altar: The Medium-Term Brightening of the Economic Outlook
Over the course of the last few weeks equity markets has felt shocks, with the German DAX index dropping by more than 10% signifying correction territory. As we explained last week, a combination of consolidation/maturity issues (talk of mini-correction), geopolitical...Altering Expectations: Not Exactly What it Usually Means
The market turmoil last week persuaded some that a major correction is at work that will deflate the financial bubble. We would humbly disagree with that prediction. In our opinion there are five main reasons why the market blinked last week, namely: Uncertainty about...Central Banks and Market Dislocations: Macroprudential Policy as Enforcer of Uncertainty
In the most recent report from the Bank of International Settlements (BIS) – the central bank of the central banks- we observed one the clearest divisions between the accommodative/coordinated policies of the most important central banks and the opinion of the...Sign Up for Our Publications
