Negative Yields, Inflationary Expectations, and Portfolio Allocation: In what Directions is Sisyphus Pushing the Rock?
Just a few days ago the auction for TIPS (Treasury Inflation Protection Securities) produced for the first time ever negative yields. When we take into account that TIPS’ correlation with the conventional inflation measure (CPI) barely exceeds twenty percent, then we...In the Land of Debt: Foreclosures, Commodities, and Quantitative Easing
The securitization problems seem to be making another comeback in the form of “foreclosuregate”, as the Economist newspaper has labeled its latest phase. Banks seem to be admitting to subpar standards in not just approving loans but also proceeding with foreclosures....Brand Name Icarus: Lessons Learned?
Today China decided to raise its lending and deposit rates. How could we interpret such a move? In the near future we will draft a commentary on Icarus, but let us recall quickly his story. His father Daedalus prepared him wings to fly, warning him not to fly too...A Sishyphonian Symphony: Currencies, Fiat Money, Hard Asssets, and the Puzzle of the Sphinx
Have you seen him lately? He is still rolling that stone up to the hill. He is my good friend, Sisyphus. He was condemned to roll the stone up the hill and as he is approaching the summit, the rock will go down the plain again. So, as I am drafting this, I am...Here we go again.
The second phase of the global economic crisis (fiscal and consequently sovereign debt) is rearing its ugly head again. News broke on Friday that the government of Ireland would stand behind Anglo Irish Bank with liquidity injections. The bailout of this...Sign Up for Our Publications
