Capital Markets

Fiat Money, Fiat News

Gresham’s Law: bad money drives good money out of circulation.

Hunt’s Law: fake news drives real news out of circulation.

European Stock Markets See Best Start To Year Since 2013

European stocks were panic-bid at the open overnight as hungover New Year's Eve revelers (absent Brits and Swiss who were still on holiday) bought Italian banks, German utilities, and Spanish industrials following the better than expected manufacturing PMIs across most nations. EuroStoxx 50 gained 0.6% - thanks to a spike near the open - for the best open to a year since 2013.

Bitcoin Surges Above $1,000 As China Unveils New Capital Controls

Chinese demand for bitcoin overnight finally proved too great, and US markets had no choice but to arb the difference. So with Bitcoin trading in China at an implied price of over $1,050 at this moment, the digital currency finally soared above $1,000 in the US as well, trading just around $1,024 on Coinbase as of this moment.

2016 Greatest Hits: Presenting The Most Popular Articles Of The Past Year

The eighth anniversary of Zero Hedge is just around the corner, and so, for the eighth year in a row we continue our tradition of summarizing what our readers found to be the most relevant, exciting, and actionable news of the year. We bring you the articles that you, dear reader, found to be the most interesting in the past 365 days.

Italy's Insolvent Monte Paschi To Issue €15 Billion In Debt

Italy's Banca Monte dei Paschi di Siena (BMPS.MI), which is being bailed out by the state, plans to issue 15 billion euros ($15.8 billion) of debt next year to restore liquidity and boost investor confidence, several newspapers said on Friday.

It's The Dollar, Stupid!

We expect global monetary authorities to protect the dollar as long as they can and we expect them to fail. Stocks and bonds will react violently; stocks and weak credits falling, treasuries prices rising (at first). That failure will lead to hyperinflation – not driven by demand, but rather by central bank money printing. A new global monetary understanding will then emerge.

In His Latest Letter, Odey Refuses To Throw In The Towel

With his fund down ~50%  YTD, one wonders if Crispin Odey should be thinking about quietly exiting stage left after a long and mostly illustrious career. However, as his latest letter suggests, Odey is just getting his second, or maybe third, wind and is confident that he will ultimately win the war against central bankers.

Trump's Trillion-Dollar Loser - What Happens Next?

In the weeks since Donad Trump was elected president, US financial stocks (and energy companies) have soared with all eyes on Dow 20k. However, across the world's capital markets, investors have lost a combined $1.2 trillion in debt and equity values, as the bond losses have outweighed stock gains dramatically (especially post-Fed). The question is - what happens next?

2016 Year In Review

We started this year with the economy deteriorating and finished it with the second interest rate increase in ten years. There were a lot of ups and downs along the way, but ultimately 2016 was defined by three key story-lines:  1) Brexit 2) The Presidential Election 3) Fed Policy. The first two events were votes that shocked the world. The stock market’s reaction to each was arguably even more shocking. 

China Halts Trading In Bond Futures After Record Bond Market Crash

Chinese authorities halted trading in key bond futures for the first time on Thursday, as panicky investors sold the securities on concern that a long, credit-fueled bull market was coming to an end amid slowing growth, capital outflows and heightened government concern about asset bubbles.