On Being and Nothing: Are the Markets Reflecting the Becoming of Nothingness?
The markets nowadays are in purgatory. What is the task of professional market watchers and fund managers? In a nutshell we would say it is to unmask portfolio holding’s self- alienation in their secular form, once they have been unmasked in their sacred form....
Who Switched the Price Tags? The Prelude of a Requiem
A friend describes in a book he wrote about twenty five years ago, how when they were kids he and one of his friends went into a five-and-dime store and switched all the price tags! As we can understand pandemonium followed when things that were supposed to sell for...
How the Mighty May Fall: On Chinese Tremors
China has been in the news again recently, and hence we would like to offer an update on our previous writings on the subject. However, before we do so, allow us first a few brief comments on gold and precious metals. We started selling a significant position of our...
Drawing Parallels: The Gold Pool of the 1960s and the Trajectory of the Euro
When the EU started feeling the heat in its periphery, and fearing damages to its core, it established the EFSF (European Financial Stability Fund). We have expressed elsewhere some of our concerns regarding its establishment. In this commentary - which will be better...
Welcome to the Era of GRBs: Asset-Price Deflation and Market Balkanization, Part IV
Markets could implode from within creating black holes where everything goes in and nothing comes out, destroying in the process paper wealth but also real economies. The essence of Gamma Ray Bursts (GRBs) is that explosions could take place when a star collapses and...
From Anesthetization to Repression: On Market Balkanization, Part III
It seems that we are on a ship, that has lost its anchor, left the port for a journey in uncharted waters, and we suddenly discovered that the gorilla we were carrying on the vessel is out of his cage. The only good news is that the ship’s name is not Titanic! This...
On the Balkanization of the Markets: Part II
Last Friday’s evening downgrade by the S&P was ill-timed and ill-advised. We wrote a week ago that we would not be surprised if it took place. We will reiterate our position that August again will prove to be a pivotal month in the financial markets. No need to...
The Balkanization of the Debt Markets: Devolution in Uncharted Waters
As we are drafting this commentary, the news is that a deal for the US debt limit is very close to be completed, that will involve the raising of the limit by at least $3 trillion in two phases. It seems that the political theater is approaching its end. Our opinions...
Anchoring Optimism in an Era of Anxiety: Reflections on Debt & Financial Stability
As an opening statement allow us to paraphrase David Liss’ claim in his novel A Conspiracy of Paper, where he claims that finance is an animal, and the government needs to decide how big the cage should be. In a few days we will be entering August. The memories of...
The World of Finance and the Public Interest
We are very pleased and honored to use by permission the latest speech that former Chairman of the Federal Reserve System Mr. Paul Volcker gave in London last Thursday, July 14, at the Cass Business School. In times of uncertainty his wise voice needs to be heard, and...
