Capital Markets

Is Financial Argmageddon Bullish For Stocks? One Bank's Surprising Answer

""We remain constructive on financial assets not because we believe in a sustainable recovery but rather because we do not believe in one, and thus we do not see any viable alternatives to an ongoing financialization, which needs to be facilitated through excess liquidity, avoiding proper price and risk discovery, and thus avoiding asset price volatilities.

Gresham's Law

... the marginal price setter is “irrationally exuberant”, or dare we say it out loud? “Greedy.”

Activists, Including Cerberus, Take 6.9% Stake In Deutsche Bank

It seems that investors, including Cerberus, are unhappy with the strategy Deutsche's CEO, John Cryan, is pursuing and the pace at which benefits are impacting the DB’s P&L. We don’t blame them and the pressure on Cryan is about to ratchet up dramatically.

Jim Chanos Adds To Tesla Short, Sees Musk Stepping Down

“Put it this way. If you wouldn’t be short a multi-billion-dollar loss-making enterprise in a cyclical business, with a leveraged balance sheet, questionable accounting, every executive leaving, run by a CEO with a questionable relationship with the truth, what would you be short? It sort of ticks all the boxes.”

GPIF Is About To Bite Back

"In essence, the BoJ engaged in a massive quantitative easing program where they printed bonds to buy stocks (through their public pension plan)... Well, guess what happened this week? The GPIF has now reached their 25% allocation to domestic stocks..."

Jail, Drugs And Video Games: Why Millennial Men Are Disappearing From The Labor Force

Prime-working age men - particularly Millennials - have failed to return to the labor force while women have reentered. While this partially reflects a growing skill mismatch, a far more troubling explanation includes greater drug abuse, rising incarceration rates and more men "dedicating" themselves to playing video games. BofA explains...

What Risk: Deutsche Bank Ramps Up Loans Business In Desperate Scramble For Profit

Our sense is that Cryan is under so much pressure to deliver revenue growth, his strategy is to close his eyes, hope for the best and go for it. After all, this was the man who last month said "We are now seeing signs of bubbles in more and more parts of the capital market where we wouldn't have expected to see them".