Finance Industry

A Simple Method Of Risk Management

In hindsight, it is easy to see that investors should have been out of the market in 2001 and 2008. However, remember just prior to those two major market peaks the Wall Street mantra was the same then, as it is today: “This time is different.”

Frontrunning: May 9

  • Yates warned Trump over Flynn blackmail fears (Reuters)
  • Former Trump security aide was Russia blackmail risk: ex-U.S. official (Reuters)
  • Visiting the White House Can Boost Your Stock Price. So Who’s Visiting Trump? (BBG)
  • Investors Lighten Up on U.S. Stocks, Betting on Europe (WSJ)
  • Oil steadies but rattled by concern about OPEC's clout (Reuters)

Financialization & The Erosion Of Growth

"As fees go up by half-a-percent, we reach into the client’s balance sheet, snatch the half-a-percent, and turn it into income; it’s almost magic - capital into income... but we lower the savings rate of our clients (savings and investment rate) by half-a-percent as our fees go up, so we get short term GDP kick from our income, at the expense of lower long-term growth on the part of the system."

Mnuchin Dashes Banker Hopes That Prop Trading Is Coming Back

In follow up remarks to lawmakers, Steven Mnuchin said even banking units that lack a government backstop should be restricted from making speculative trades: "a legal distinction between the insured and non-insured entity is an important factor in eliminating risky activities within the institution that has” insured deposits.

Did Chuck Schumer Just Threaten Donald Trump?

“Let me tell you: You take on the intelligence community - they have six ways from Sunday at getting back at you...he's being really dumb to do this" Threaten the U.S. President-elect with the CIA. How liberal.

Frontrunning: January 4

  • Trump Tariff on GM Would Violate NAFTA. That May Not Stop Him (BBG)
  • Obama Tries to Save Parts of Health Law Amid GOP Attack (WSJ)
  • Trump Puts Auto Makers, Trade Policy in Spotlight (WSJ)
  • British consumers borrow at fastest rate in 11 years as inflation threat rises (Reuters)
  • Investment banking fees fall 7 percent in 2016 dragged down by equity raisings (Reuters)

As Mystery Of China's Multi-Billionaire Default Deepens, A New "Bond Scare" Emerges

The fate of a defaulted $45 million Chinese corporate bond sold through an Alibaba-backed online WMP and belonging to the telecom company of one of China's biggest billionaires, was thrown into doubt on Monday, after a bank said letters of guarantee for the bonds were counterfeit, suggesting an entirely new "finance scare" is emerging in China.

China's Latest Capital Control: A Crackdown On Macau ATM Cash Withdrawals

Casino stocks have plunged following a report in the South China Morning Post that in China's latest crackdown on capital outflows, Beijing is cutting in half the amount of money account holders of China UnionPay can withdraw from ATMs in Macau, the world’s largest gambling market.