Quantitative Easing

Frontrunning: August 22

  • Trump commits to a 'fight to win' in Afghan war (Reuters)
  • Stay or Go? Some Trump Aides Are Pressed From All Sides (WSJ)
  • Futures higher as traders pick up beaten-down stocks (Reuters)
  • Divers Search Compartments of Ship for Missing Sailors (WSJ)
  • Why Do U.S. Navy Ships Keep Colliding? (BBG)

Sell US, Buy Japan?

"...Yeah, yeah, I know. Japan’s demographics are terrible. Their debt to GDP is mind numbingly large. It certainly appears as if their ability to grow is hampered by many handicaps... But since when have fundamentals mattered?"

The Great Disconnect: Markets Vs. Economy

"While the Fed keeps promising with each passing year the economy will come roaring back to life, the reality has been that all the stimulus and financial support can’t put the broken financial transmission system back together again. Eventually, the current disconnect between the economy and the markets will merge. My bet is that such a convergence is not likely to be a pleasant one."

European Junk: "The Good-Looking Ones Are Always Bad News"

"I understand the attraction to shorting European junk. It’s easy to look dreamily at this chart and imagine spreads doubling to 5% without batting an eye... But there are a couple of problems with this trade..."

Euro Turmoils After ECB Walks Back Draghi Jackson Hole Appearance

The Euro whipsawed after Reuters "Trial ballooned" that contrary to a previous report by theWSJ, the ECB's Mario Draghi will not deliver a new policy message at the upcoming Jackson Hole conference, tempering expectations for the bank to start charting the course out of stimulus, and rallying European bonds as fears of an imminent taper have been pushed back once again.

"Sleepwalking Into An Even Worse Version Of The 1930's Depression"

"Governments around the world do not seem to understand the situation we are facing. In large part, this is happening because economists have built models based on their view of how the world works...We seem to be sleepwalking into an even worse version of the Depression of the 1930s."

Orwell Or Kafka - Ken Rogoff's Crusade Against Cash Continues

"Harvard professor and chess grandmaster Kenneth Rogoff has said some pretty out there stuff before, in his role as self-appointed crusader against cash, but apparently he’s not done yet. In fact, he might just be getting started..."

Passport Global Slammed With Over 60% In Redemptions In Q2

"For the second quarter, the Fund had net outflows of $480 million. Firm-wide, net outflows (not including the Long Short hedge fund strategy liquidation, effective 4/30/2017) totaled approximately $565 million. At quarter-end, net of June 30th redemptions, Fund assets stood at $275 million and Firm assets totaled approximately $900 million."

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?"

China's Minsky Moment Is Imminent

Everything you wanted to know about the looming bursting of the world's biggest credit bubble, but were afraid to ask...