How Japan Bankrupted Itself
Following the start of Abenomics in 2012, Japan moved back to the center of attention of global financial markets. After two and a half decades of economic stagnation, hopes were high that Japan would escape its long stagnation and deflation. Plenty of economists...
The Illusion of a European Firewall: Reflections on a Convoluted Expedition
The Euro – the epitome of what is known as a dysfunctional currency- is shaking. It seems that the Fed no longer needs to support it at those irrational levels, given that the price of oil has dropped so dramatically. Given the tremors of the EU debt crisis between...
Weekly Market Update
Market Action A strong jobs report published Friday could not assuage markets, pushing them down overall on the week and 2015 so far. While the headline jobs growth exceeded forecasts wage growth slipped in December, continuing a worrying trend. Volatility remains...
Weekly Market Update
Market Action Rising volatility in U.S. markets and international worries pushed major indices down for the past week. Some disappointing data, particularly in housing, took some steam out of equities. The Euro hit a multi-year low against the dollar over the weekend....
A Review of the Most Important Global Events in December by Monthly Barometer
The combat against lowflation, or possibly deflation, will be by far the greatest economic challenge of 2015. The world economy is now deflation-prone, and in almost all developed economies, inflation is below target. If inflation expectations were to ease...
On Foxes and Hedgehogs: Assimilating the Dissimilar while Contemplating the Impalpable and the Imponderable
I boarded the nonstop flight from Miami to Buenos Aires. As in the previous years during this time, it was destined to be an exciting flight. My fellow co-passengers in that specially-designed section of the plane were Montesquieu, Tolstoy, Mordechai, Callias II,...
Japan: Abe’s Remaining Options
Blacksummit Financial Group is honored to publish the following piece by Dr. Daniel Stelter, with his permission. This is the first of three posts by Dr. Stelter that we will be publishing and distributing. Dr. Daniel Stelter is the founder of the German discussion...
Existential Market Disruptors, Part II: Contemplating Credit and Currency Scenarios for 2015
The purpose of this commentary is not to convey our outlook for 2015. That will be forthcoming in two parts in the next couple of weeks. Rather its purpose is to express some concerns regarding clouds that are gathering in the investment horizon and which are molded...
Weekly Market Update
Market Action Markets experienced their most turbulent week since the decline of mid-October. Going back to December 9th the Dow Jones lost close to 5% in the span of a week. Reasons for the decline are not entirely clear but talk of illiquidity, especially in...
Geopolitical Journal: December 17th
Geopolitical Headlines Russia Tension and fragility in Russia grow deeper every day and on a multitude of fronts. The precipitous decline of oil brings worry about the basic foundations of the Russian economy. Capital outflows have pressured the ruble to an all time...
