Lehman

Steve H. Hanke's picture

The calculated risks that a financial institution takes when investing is best understood by the institution itself, not the government or any outside party. So, shouldn’t these banks determine how to utilize their capital if they are the ones who best understand the risks they take?

The Secret History Of The Banking Crisis

"Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for?"

Steve H. Hanke's picture

Why was international financial officialdom so eager to raise banks’ capital-asset ratios? The starting point for the global bank capital obsession is found in Britain and its infamous Northern Rock affair. Indeed, this was the true beginning of the Great Financial Crisis and the Great Recession.

The Most Important Chart For Stocks

"Since the collapse of Lehman Brothers in 2008, central banks have bought $10.8 trillion in assets, and that liquidity has propelled financial markets all over the world. Now it appears that we are on the cusp of global synchronized monetary tightening..."

World Stocks Hit Another All-Time High As Crude, Treasurys Drop

World stocks hit a new record high on Monday, as U.S. index futures followed Asian stocks on better-than-expected company earnings and strong US jobs data deflected attention from the rising geopolitical tension over North Korea's nuclear program. European stocks traded near session lows while Crude oil prices fall. The Bloomberg Dollar Spot Index was little changed.

"Visions Of Cataclysms": Why Eric Peters Is Starting A Long-Vol Fund

"Rising volatility begets rising volatility. And given the unprecedented volatility-selling in this cycle, I can imagine a historic reversal. And at that point, investor imaginations will run rampant with visions of cataclysms. It is always thus, it is who we are. Confidence in a tomorrow that is indistinguishable from today will vanish, replaced by some new hysteria."

JPM: "Investors Are Starting To Hedge Against A Crash"

"Rising VIX ETF exposures are likely reflective of skepticism by retail investors, who are the main users of VIX ETFs, and who see the current combination of record low equity market volatility and record high equity  prices as rather unsustainable."

Zombie Corporations Litter Europe, Kept Alive By ECB

"The citizen does not benefit from the zombification of the economy. The citizen pays for it. How? With the destruction of savings through financial repression and the collapse of real wage growth. Savers pay for zombification, under the mirage that it 'keeps' jobs..."

Draghi Did Not Keep His Promise

"The threat to the euro is today greater than it was in 2012, and for that Draghi has completely failed. It comes not in Target II imbalances and Greek default penalties, but in political upheaval tied directly to what it is that Mario Draghi can’t seem to figure out. He can promise all he wants, but Europe’s fate will not be determined by his euro."