Archive - Sep 2014 - Blog entry

Bank of England plans to make bondholders and depositors bear the cost of bailing out failing banks has led Moody’s to downgrade its outlook on the UK banking sector.

Borrowing more money at cheaper rates might provide short-term liquidity, but it does nothing to reduce your leverage in the real world. This is why, generally speaking, all Central bank policy is failing to generate growth: Central Banks can’t really do anything to remedy the situation!

WARNING: THIS POST IS NOT SUITABLE FOR VIEWING WITH  FOOD, BEVERAGES AND GOLF

Draghi cut rates and announced ABS/covered bond purchase plan to start next month.  Balance sheet between TLTO and purchase scheme to increase by ovre 1 trillion euros

Sterling fell sharply yesterday as traders became nervous of a possible vote for Scottish independence. The referendum on Scottish independence from the United Kingdom takes place on Thursday 18th September. 

While the referendum and the potential impact of an independent Scotland have been on the horizon for some time, the approaching vote in two weeks is causing upheaval for the British pound in currency markets, and also more general macro uncertainty in the regional economic and monetary system.

If the market signs are blurry, your best option is to look at what the top investors are doing.

In Wales...

Overview of the ECB meeting and likely outcomes.  More robust analysis than ideological fervor.

Greetings from Taupistan...

Good corporate governance is a bedrock on which a company can let its intellectual creativity and innovation flourish. It is like a compost put into a vegetable patch for the spring planting.

Equally, it is possible that some of the gold that has disappeared from the ETFs has again gone back into private hands or else is being accumulated in stealth manner by the official sector such as emerging market central banks. We discussed this, hacking of the CME and financial exchanges,  ‘peak gold’ and why Russia and China are increasingly important to the global gold market in a short video interview at the weekend:

The Central Bank policies of the last five years have damaged the capital markets to the point that the single most important item is no longer developments in the real world, but how Central banks will respond to said developments.

Tusk, Tusk, Tusk...

Eating out for the weekend brings home the idea that food and restaurant costs are only going up on the whole... 

While many will claim otherwise, often those who are awakening just want the system to be ‘fixed’ so they can go back to sleep.