Commentaries

By: John E. Charalambakis | On: August 10, 2013 |

On Spendthrift Lords, Rays of Hope, and Market Developments: Pyrrhic Victories and the Fable of Stability

The developed world’s crisis of 2008 was the result of credit over-extension fed by international imbalances and a finance sector that was issuing instruments whose collateral base was questionable. Developing […]

By: John E. Charalambakis | On: August 3, 2013 |

Credit Orphans on the Street Called “Money for Nothing”

For a crisis to culminate and show its true face, time is critical in the sense that it should enter a saturation phase which in turn will signify that the […]

By: John E. Charalambakis | On: July 29, 2013 |

Momentum and Retrenchment: Market Outlook Amidst Geopolitical Turmoil

The current market record-setting highs may signify an upward bias carried by momentum and liquidity. The first graph below shows the performance of the S&P 500 over the last month, […]

By: John E. Charalambakis | On: July 23, 2013 |

Currencies and Hobson’s Choice: The Trajectory for the Revaluation of the Dollar

The best thing that the US has to export is the USD. From that perspective, it is the strategic advantage of the US to create those conditions necessary for the […]

By: John E. Charalambakis | On: July 10, 2013 |

The Dangers of Self-Deception: The Deus ex machina does not Exist

In the last few days Greece and Cyprus occupied the headlines again in newspapers like The Wall Street Journal, the New York Times, and the Financial Times. I apologize for […]

By: John E. Charalambakis | On: July 5, 2013 |

Where the Middle East Meets the Gnomes of Fiat: The Segregation of Risks

It is apparent that Morsi never made up his mind regarding the ultimate Machiavellian question of whether a leader needs to be feared or be loved. The solution imposed by […]

By: John E. Charalambakis | On: June 27, 2013 |

Eluding Real Growth and the Future of Precious Metals: The Central Bank of Central Banks Signals the New Phase

The latest report of the BIS (Bank of International Settlements, a.k.a. the central bank of the world’s central banks) is very clear as to the future of further monetary stimulus […]

By: John E. Charalambakis | On: June 22, 2013 |

Financial Stress, Chinese Credit Squeeze, and Emerging Markets: Lessons from the Cosmological Constant

The Fed’s hint that they may taper the purchases of financial assets ignited a fear in the markets last week. We have long been advocates of sound money while questioning […]

By: John E. Charalambakis | On: June 15, 2013 |

Production of Illusions by Means of Illusions: Aristotle Confronts Volatility

We are coming to a juncture in the markets where we need to decide if the means of illusions used can produce any real lasting effects. The truth of the […]

By: John E. Charalambakis | On: June 8, 2013 |

Hegel Meets Kierkegaard on Wall Street: The Unintended Consequences of Placebo Treatments

This year marks the 100th anniversary of Kierkegaard’s birth. The father of existentialism had a clear target, to show that Hegel’s attempt to systematize all reality was an exercise in […]