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”...Dancing to the Sounds of an Acrimonious Manipulative Symphony: A Prelude in Out-Maneuvering the Devil?
In Shakespeare’s play titled “Othello” we discover an acrimonious manipulative protagonist in the person of Iago who envisions the downfall of Othello. Iago’s plans are not just convoluted. They are plain evil. Iago’s deceptions grow larger in every act of the play....The Here and Now: Market Myopia Meets Financial Presbyopia
It’s a pity that the market participants’ focus is on the childish political theater in Washington D.C. which is nothing but a symptom of a greater problem. Nations like families and individuals should restrain excessive spending habits (especially those that advance...Sign Up for Our Publications
