On Euro’s “Strength” and Dollar’s Weakness: The Role of Swaps Among Central Banks
Without a doubt in the last three-four months we live an oxymoron: In the midst of the sovereign debt crisis in Europe, the Euro has been strengthening and the US dollar has been weakening, as the following graph shows. We will let primarily graphs to talk in this...A Drama in Three Acts: From Credit Extension to the Tragedy of the Commons and the Trajectory of Paper Money
We live in peculiar, maybe schizophrenic days. The drama that started unfolding in August 2007 pertained to Act I – known as the bursting of credit bubbles – that carry with them significant negative effects for equity and debt markets and in their own way...On Burning Developments and Economic Prospects: Centrifugal Forces and Countercyclical Strategies
At the time of this drafting the news centers on different fronts: Prime Minister Socrates in Portugal announced his resignation over a lost confidence vote in the parliament that was about the fourth austerity package of measures within a year! Portugal soon may be...Market Developments in the Wake of the Japanese Catastrophe: Are we Facing a Rising Global Financial Entropy ?
The global equities market and its bullishness has experienced a shock. By some historical standards such as the P/E ratio and the forward-looking earnings multiple, the markets (at least some sectors) are overvalued, and thus the Japanese catastrophe becomes an...On Hotspots, Part IV: The Geopolitics of Pakistan
Since our last post covering global hot spots, the protest movements throughout the Middle East have only continued and picked up in intensity. Oman, Saudi Arabia (BTW for how long will it be known as Saudi Arabia and not just Arabia?), Iran (theocracy is dead, and...Sign Up for Our Publications
