Financial Infertility: From Euphoria to Paralysis
As readers of our publications, presentations, and commentaries could confirm, for quite some time now we have been talking about the dangers of over-collateralization, especially of collateralizing paper-assets a.k.a. financial instruments of various forms. Moreover,...On Emerging Markets, Fed’s Recent Announcement, Bond Yields, and the Postman’s Bell
James Cain’s book The Postman Always Rings Twice is an allegory of greed, passion, judgment, and even divine intervention. Frank (the novel’s main character) got away with murder the first time. However, the second time around he was wrongly convicted for murder. Here...Manufacturing a Credible Irrationality: Slush Funds, August Memories, and a Prelude to the Chinese Case
In our June newsletter, we announced that in a few months we will publish our research on what we believe to be a Chinese bubble. In that issue we showed how the Chinese coincidental and leading indicators point to a slowdown in China. Since then, the numbers have...From the Great Moderation to the Great Recession
The period from the mid 1980s to the middle of 2007 is known as the period of great moderation, when inflation was low and stable, unemployment also was low, utilized capacity pretty high, productivity growth rate very healthy, interest rates stable and declining,...On Credit Contraction and Deflationary Pressures
The following is a series of thoughts about the threat of deflation knocking at the door of the U.S. economy. The U.S. economic growth is most dependent on the consuming culture of its citizens as it comprises 70% of our GDP. Yet the last decade saw the trend of...Sign Up for Our Publications
