Moral Hazard

To Fix Healthcare, We Need To Repeal A Lot More Than Obamacare

If repealing Obamacare is really the goal, the GOP should instead focus on repealing and undermining the edifice on which Obamacare was built: the highly regulated, subsidized, and manipulated healthcare markets that dominate today.

Deutsche: The Fed Has Created "Universal Basic Income For The Rich" And Now It Can't Get Out

"The accommodation and QE have acted as a free insurance policy for the owners of risk, which, given the demographics of stock market participation, in effect has functioned as universal basic income for the rich. It is not difficult to see how disruptive unwind of stimulus could become. Clearly, in this context risk has become a binding constraint"

Deutsche: The Market Broke In 2012, "This Is What Everyone Is Talking About"

"After 2011, the two measures of risk decouple with VIX consistently low despite growing uncertainty. The breakdown is structural, and it is visible across all market sectors, not only equities. Current levels of complacency are alarming. This is what everyone is talking about... The longer this regime continues, the lower the threshold of painful unwind."

Reuters Goes To China, Discovers "Ghost Collateral"

"The first time I went, I saw the steel,” recalled Wang, an attorney at Beijing DHH Law Firm, which represents the Shanghai branch of CITIC. "Afterwards, the banker got in contact with me and said, ‘The pledged assets are no longer there"

When The "Solutions" Become The Problems

The cold truth is all these institutional-state-cartel "solutions" serve the few at the expense of the many. This is not a side-effect; it is the intended output of these "solutions." In other words, these "solutions" work great for the parasitic few at the top skimming all the wealth, power and income, at the expense of the exploited many and the stability of the system as a whole.

Trump Administration Rolls Back Obama Protections On Student Loans

Just days after reports emerged that student loan defaults are soaring, the Trump administration has revoked rules put in place by Obama that barred student debt collectors from charging penalty fees on past-due loans...that should take care of that pesky 'moral hazard' problem...

Debunking The Big Lie

There is no such thing as good monetary policy. There is no such thing as effective monetary policy, or monetary policy that does no harm. There are only the times when most people see no overt symptoms, when they don’t realize the damage being done.

European Rally Fizzles, S&P Futures Turn Red As USDJPY Slides, Bunds Strongly Bid

What started off in familiar fashion, with Asian stocks rising, and Europe hitting multi-month highs and US futures in record territory has stumbled in recent minutes following a continued rush for safety in short-dated German Bunds (the 2Y is now trading at -0.92%) and ongoing selling in the USDJPY, which has pushed Stoxx 600 back to unchanged, and S&P futures to modestly red for the session.