Reforms in the Great Wall of Steroids: Assessing the Global Impact
Two days ago the third plenum of the Chinese eighteenth central committee meeting ended and all indications point to an historic event. Third plenums tend to consolidate power for the Chinese leader and produce significant economic and political changes. It was in...Liquidity, Goethe, and the Magnification Effect: Growing Stronger on a Weaker Ground
Goethe’s insights into the seriousness of the problem of historical epistemology reminds us that in human history some have chosen to reject the notion of historical truth by diverting their poetic enthusiasm to heroic events that like in a legend have transformed the...Financial Lubrication and Market Upswing: Conquering Shifting Sands
The essence of this commentary is twofold: First, to explain how and why the rising levels of financial lubrication are expected to generate and support a rally in equities and to a lesser extent in bonds. Second, to discuss how those elevated lubrication levels may...On “Doom-Loops”, Insufficient Capital, Camels, and Utilitarianism: Market Suasion or Delusion?
In a interview on CNBC Mario Draghi (the head of the European Central Bank, ECB) told us yesterday that he is concerned about capital insufficiencies, balance sheet holes, and backstops related to the EU banks. He added that there is a need to “dispel the fog”...Sign Up for Our Publications
