Archive - Jun 13, 2015

If I'm a fund manager, the idea that ETFs provide liquidity rests on the assumption that when I experience outflows, someone else will be experiencing inflows and thus I can sell ETFs and avoid offloading my bonds into an illiquid corporate credit market. Put another way: I am depending on new money coming into the market to fund redemptions from previous investors who are exiting the market, all so that I can avoid liquidating assets that are declining in value and that I believe will be difficult to sell. There's a term for that kind of business. It's called a ponzi scheme.

Spiegle traces the history of German Chancellor Angela Merkel's relationship with FinMin Wolfgang Schaeuble who is leading the opposition against further aid for a Greek government he views as unwilling to accept economic realities. As the rift between the two deepens, Schaeuble has instructed the German finance ministry to draw up plans that would limit the fallout from a sovereign default.

For months, Hillary Clinton kept radiosilence unsure how to best address and respond to numerous accusations of impropriety involving the Clinton foundation, the "cash-for-speeches" fiasco, the various email scandals and countless other public issues that have dogged her second presidential campaign. Moments ago, she reappeared and is rolling out her 2016 presidential campaign with a speech at Roosevelt Island in New York City. Watch it live below.

Keynesian policy of manipulating economic “aggregates” through countercyclical macro-measures appeared to work when balance sheets were not stretched to the brink. The glaringly obvious result of such policies, gross capital consumption through malinvestments epitomized through a serial bubble economy, did not discourage our money masters. The best and brightest even suggest bubbles are the only remedy to what they believe is some sort of secular stagnation. Just as drugs, the abuser must increase the dosage to feel the same high and spend accordingly.

"If we have a sustainable solution, regardless of how difficult the compromise is, we will bear the burden because the only criteria are exiting the crisis and the bailouts."

No follow through dollar buying against euro, yen and sterling after data showing US economyis recovering from weak Q1.  What is happening?  What is the outlook?

If it looks like a skunk...

Orkim manages a fleet of 11 ships according their website and of those 11, two are suspected of being hijacked in early June.

Looking back at the Lehman Brothers collapse of 2008, it’s amazing how quickly it all happened. In hindsight there were a few early-warning signs, but the true scale of the disaster publicly unfolded only in the final moments before it became apparent that Lehman was doomed. Could this happen to Deutsche Bank?

Approximately two years ago, a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.

Round 2 Comes Tuesday