On the Chinese Wall of Steroids: Imbalances and Asymmetries

by John E. Charalambakis | May 19, 2015 | Commentaries

In a recent study by the McKinsey Institute total credit market debt in China is shown as the largest in the world, and that is only what we know of. The dangers are not limited just to China but are extended to the global financial system. In a world where financial...

Dioskouri Brothers Confronting a Joyful Disorder: Bonds, Yields, and Negative Equilibrium

by John E. Charalambakis | May 14, 2015 | Commentaries

Over the course of the last two weeks, we have been observing a twist in the bond markets. Yields are rising and consequently bond prices dropping. More than $420 billion worth of paper wealth has been wiped out in the bond markets across the globe. The rooster of...

A Walk Down the Elysian Fields: Cicero Meets Maimonides to Discuss Imbalances and Negative Equilibrium

by John E. Charalambakis | Apr 28, 2015 | Commentaries

This past Monday we posted an article by Chairman Paul Volcker on the need for radical financial reform (see     http://stage.blacksummitfg.com/2978).  Chairman Volcker wrote “it is too clear that the federal financial regulatory structure is simply inadequate to head...

Negative Equilibrium: The Sustainability of the Unsustainable

by John E. Charalambakis | Apr 22, 2015 | Commentaries

In its recent World Economic Outlook, the IMF questioned the sustainability of the current growth trajectory around the globe. This should not have been a surprise given the levels of unsustainable debts and liabilities around the world, as well as the fact that the...

White Knights in a Festival of Fools: The Tale of a Dangerous Encounter

by John E. Charalambakis | Apr 8, 2015 | Commentaries

Around the globe fundamentals are being ignored. Unsustainable debt keeps rising, the equity markets of dysfunctional economic unions seem to “thrive”, unprecedented monetary measures are implemented and a Leviathan state is emerging where “white knights,” in the form...