But, Gave notes that for next year, three questions are critical: 1) Will the US-dollar liquidity squeeze ease. And what they imply is critical: * * * Option 1: A Liquidity Squeeze (And How It Ends) Does oil start a chain reaction leading to an easier Fed. Option 2: Growing Read more…
Governments and central banks attempt to smother the symptoms, which was the underlying reason behind the cooperation between Benjamin Strong at the Fed and Montague Norman at the Bank of England during that decade. Foreign nations responded by increasing their own tariffs, and the contraction in international trade was a Read more…
Blame Italy – Why don't the democratically-elected leaders just fold, slash their deficits, and maintain their nation's march into oblivion. The VIX Term Structure inverted once again. As equity protection (VIX) played catch up to credit protection (IG/HY CDX)…as IG spreads blow out to new cycle wides. Read more…
You have a thirst for yield that exists on a global basis. IG debt outstanding has grown by 142% in this cycle and non-Fin BBB debt has grown by 181%. Non-Financial corporate debt/GDP has never been higher. And IG interest coverage, which used to be a bright spot is now Read more…
A prime example is David Goldburg, the title character in a Bloomberg profile of the deteriorating hedge fund environment. If you have more than 15 years experience, and you want to transition to something else or want that next level of opportunity, there's never been a worse time.” He has Read more…
Only President Trump's America did not. And we cannot survive the taxes you are imposing on us in the here and now. But when the electorates cannot see the benefits of these painful price hikes, the greater the likelihood the people will rise up and repudiate those whom progressives regard Read more…