Commentaries

By: John E. Charalambakis | On: June 16, 2015 |

Prodigal Families and Comical Tragedies: The Cannibalization of the Price of Capital

Rembrandt’s painting portraying the return of the prodigal son is an amazing and monumental piece of art. It signifies the most joyful moment of reuniting a family and starting a […]

By: John E. Charalambakis | On: June 9, 2015 |

Dancing with Lemmings: The Migration of Crowded Trades

We live in an epoch where volatility is becoming a trademark. We try to discover causes for this and all we are successful in doing is reshuffling symptoms. Like lemmings […]

By: John E. Charalambakis | On: May 19, 2015 |

On the Chinese Wall of Steroids: Imbalances and Asymmetries

In a recent study by the McKinsey Institute total credit market debt in China is shown as the largest in the world, and that is only what we know of. […]

By: John E. Charalambakis | On: May 14, 2015 |

Dioskouri Brothers Confronting a Joyful Disorder: Bonds, Yields, and Negative Equilibrium

Over the course of the last two weeks, we have been observing a twist in the bond markets. Yields are rising and consequently bond prices dropping. More than $420 billion […]

By: John E. Charalambakis | On: April 28, 2015 |

A Walk Down the Elysian Fields: Cicero Meets Maimonides to Discuss Imbalances and Negative Equilibrium

This past Monday we posted an article by Chairman Paul Volcker on the need for radical financial reform (see     http://stage.blacksummitfg.com/2978).  Chairman Volcker wrote “it is too clear that […]

By: John E. Charalambakis | On: April 22, 2015 |

Negative Equilibrium: The Sustainability of the Unsustainable

In its recent World Economic Outlook, the IMF questioned the sustainability of the current growth trajectory around the globe. This should not have been a surprise given the levels of […]

By: John E. Charalambakis | On: April 8, 2015 |

White Knights in a Festival of Fools: The Tale of a Dangerous Encounter

Around the globe fundamentals are being ignored. Unsustainable debt keeps rising, the equity markets of dysfunctional economic unions seem to “thrive”, unprecedented monetary measures are implemented and a Leviathan state […]

By: John E. Charalambakis | On: March 29, 2015 |

Lorca on Headwinds and Tail Risks: It’s Five O’clock at the Crossroads of Liquidity and Volatility

Could the markets suddenly unravel? Of course they could. The fiat monetary system is like a mirage, it can tumble because of underestimated circumstances. Imagine for example Greece abruptly leaving […]

By: John E. Charalambakis | On: March 11, 2015 |

Drying Up The Collateral Base

Since 1873 the world has suffered two periods of great deflationary pressures: the first one from 1873-1893, and the second during the Great Depression in the 1930s. We may be […]

By: John E. Charalambakis | On: March 3, 2015 |

“Quanto Sia Vana Ogni, Quanto Fallace Ciaschedum Disegno”: The Economics of Turmoil, and the Financing of Dysfunctionalities in the Midst of Volatile Markets

Lorenzo the Magnificent (the scion of the Medici banking family), whose lending institution dominated not only Florence but much of Europe, was also a poet influenced by Horace and Catullus. […]