Emergency Liquidity Assistance (ELA) and Financial Tremors: Useful Idiots Part III
About two weeks ago, we were assured by the government in Spain that they only needed about €50 billion for their banks. All of a sudden the €50 billion became €100 billion and we are still counting. Welcome to the new math where besides addition through subtraction...Parasitic Structures and Monetary Entropy: Basic Instructions Before Disintegration
Fifteen years ago the global markets were getting ready to “welcome” the Asian financial crisis. The cause of that crisis? Declining multifactor productivity from Thailand and Taiwan, to Indonesia and S. Korea. The symptoms of that crisis? Trade deficits, overvalued...European Shocks and Strategic Disintegration Part IV: Useful Idiots in the Land of Ds
I love dogmas (our first D). I know that in politically correct terms, dogma is an antiquated term that should die. However, dogmas are like the oxygen. You may not be able to see the oxygen with the naked eye however you cannot live without it. There are some...On Bank Losses, Hedging, Fiat Currencies, and Risks: The Role of Anchors
Last Thursday evening, JP Morgan Chase admitted to losses of at least $2 billion on a $100 billion derivatives bet, baptized as hedging. As time goes by, the actual losses may increase. For review purposes, it is helpful to revisit the worldwide $700 trillion monster...Useful Idiots No More: Political Hubris and Economic Realities
The results of the elections held in Greece last Sunday may well have sent a powerful signal to politicians and policy makers worldwide, that has yet to be discussed by the press. That message simply says: “We are no longer your useful idiots”. It seems that for many...Sign Up for Our Publications
