Some more comedy relief to start us off today. This statement comes courtesy of the European Central Bank (ECB), via its Twitter account: ECB asset purchases have reduced inequality in the eurozone, our research shows. They have especially benefited low-income…
DELRAY BEACH, FLORIDA – Stocks got off to a rough start on Monday. Heavy equipment maker Caterpillar reported punk numbers; investors took it as a sign that the world economy is slowing. That’s our guess too. Night Is Day After…
Getting hammered in a central bank is an experience reserved only for the financial elite. The idea of proles like you or I knocking back drinks in such ivory towers borders on heresy. But believe it or not, the Public…
The French central bank on fire… fork lifts rammed into banks and the ministry of finance… brutal fights between riot police and protestors… cars set ablaze… and yet the market is still willing to lend to the French government at…
I read a history of the Bank of England (BoE) last year. It wasn’t very exciting. Even when armed guards took up positions to protect the bank from riots and during the war, not much happened. But one thing did…
The financial news looks like my Netflix account after watching the wrong movie. The recommended viewing section has been invaded by zombies, bombs and vigilantes. The Bank of International Settlements is warning about “The rise of zombie firms”, which are…
If the government set the price of coffee or coal, you’d know what to expect. A mess. There’d be shortages and surpluses, quality problems, questionable business practices in the industry, and suspicious links between politicians and big business. But even…
4 July 1989. As Americans awoke to celebrate Independence Day, a lone Soviet fighter jet took off from Poland and began flying west. The pilot of the MiG-23 “Flogger” did not explain himself as he soared across Europe. Crossing Polish…
Bond investors are turning to John Denver songs to make money. Yes, you read that right. Country Roads and Leaving on a Jet Plane have become a substitute for bonds. Such is the state of the fixed income market. Who…
With Australia and Germany out, your editor’s interest in the World Cup has halved. But Japan and England play tonight. Yesterday, in anticipation of the game, I bought beer made by the Bank of Japan (BoJ). At a shopping centre…
What sort of policies will be passed under the cover of Brexit? My worry is that you can twist the referendum any way you like and claim a mandate for whatever you want. As long as you include the word…
It turns out that investing is really very simple… in a way. Howard Wang of Convoy Investments explains that investment prices are driven by the amount of money and the amount of assets. Asset price = quantity of money/supply of…
YOUGHAL, IRELAND – Our screen last Friday was showing the 10-year U.S. Treasury Note with a yield of 3.11% – further evidence that the credit cycle has turned. Everything else is noise. Primary Trend We got the idea from the…
A spat about bank capital hit the news late last week. Not only is the topic immensely boring, but it’s also completely misguided. That should make you stop reading, unless you’re aware of the implications. If banking were to blow…
Warning: your bank does NOT want you to read this report Deep down, you probably knew something wasn’t quite right. It’s a decade since the global financial crisis. It was a unique moment in history – a single event that…
ON THE CELTIC SEA – We drove up to Cherbourg yesterday, boarded a ferry, and are now cruising towards Ireland. The trip takes nearly an entire day, but the wifi works onboard… so we were able to stay in contact….
An apex predator is an animal at the top of the food chain, with prey to hunt, but no predator to fear. They are the royalty of an ecosystem. Beasts are often used as symbols to explain the abstractions of…
Everyone agrees. The biggest risk to the markets is obvious. Central bankers are swapping quantitative easing (QE) for quantitative tightening (QT). And QT could make the world blow up in all sorts of ways. Citibank credit strategist Matt King told…
The FTSE 100 is back where it was 18 years ago. Less than half the companies from back then are still in the index today. The Goldman Sachs Commodity Index is back where it started too. The oil price touched…
GUALFIN, ARGENTINA – Friday evening after the bell rang on the New York Stock Exchange, traders and analysts, sell side and buy side, 2018 quants and deep value dinosaurs, million-dollar-a-year partners as well as the order takers and clerks, all…
Getting into a sports stadium is always easier than getting out. Unless you leave early. The stockmarket is much the same. Up the escalator and down the elevator is the mantra describing the nature of the stockmarket’s booms and busts….
Australia didn’t even have a recession in 2008 or 2009. China’s enormous stimulus programme and a wave of immigration saw to that. It was a demonstration of the power of countercyclicality. As long as some parts of the world are…
GUALFIN, ARGENTINA – Over the weekend, we went to visit our new property. The house, which we are renovating, is on the far side of the river. We’re just realizing what a challenge that poses. In order to get over to…
GUALFIN, ARGENTINA – Investors were cheered up last Friday by the jobs report, which showed that the number of new jobs is about equal to the high set back in 2006 – just before the last crisis. As near as…
GUALFIN, ARGENTINA – Another miracle! It rained. “We got 200 millimeters (about 8 inches) this year,” reported the capataz, Gustavo. After two years of drought, finally, the fields, mountains, and pastures are green. And the river that separates the house…
The corruption or debasement of currency is seen as the action of an empire or civilisation that is in decline, or even about to collapse. The Roman Empire’s debasement of its money (currencies such as the denarius and sestertius) in…
BUENOS AIRES, ARGENTINA – We went to dinner last night at a little neighborhood restaurant in Palermo Soho. It was already crowded when we arrived after 9 p.m., with a warm buzz of conversation. But scarcely had we been there…
Trainspotting provides today’s economic analysis. The movie is about a drug addict’s attempts to come clean. It doesn’t go so well. Perhaps because he’s trying to do it in Scotland. In the end, he steals thousands of pounds from his…
Today’s Capital & Conflict comes from the latest issue of The Price Report by investment director Tim Price. Within my asset management business, we deal with two levels of emotional responses to the state of the financial markets. At one…
I’ve got so much honey You know the bees envy me I’ve got a sweeter song Oh, than the birds in the trees Oh and I know, I know, I know what you’re gonna say What, what could make me…
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