recovery

Negative Rates & The War On Cash, Part 4: "Financial Totalitarianism"

Governments and central banks would very much like to frighten people away from cash, but that only underlines its value under the current circumstances. Cash is king in a deflation. The powers-that-be know that, and would like the available cash to end up concentrated in their own hands rather than spread out to act as seed capital for a bottom-up recovery. Holding on to cash under one’s own control is still going to be a very important option for maintaining freedom of action in an uncertain future.

Why One Hedge Fund Is Once Again Preparing For The End Of The Euro

"The time for treating the EUR-peg as a taboo may soon be past us, and an open discussion become the dominant narrative, in pursuit of a long-term durable solution to economic stagnation, in an attempt to save the European Union, so to orderly drive the process as opposed to end up being overwhelmed by the trending course of events."

Deutsche Warns Of 10% Decline as Market Reaches "Mania" Level

Realized volatility in the US equity markets has been extremely low, and much discussed, but, as Deutsche Bank's David Bianco warns this is "the quiet before the storm." There are five catalysts for increased vol through Autumn but most worrying is the "High P/E, Low VIX" scenario is very risky having reached "mania" levels.

Frontrunning: September 9

  • German jitters weigh on stocks, ECB doubts lift yields (Reuters)
  • Chinese Billionaire Linked to Giant Aluminum Stockpile in Mexican Desert (WSJ)
  • Monte dei Paschi CEO to be replaced as cash call looms (Reuters)
  • German exports plummet in July, hit trade surplus (MW)
  • North Korea conducts fifth and largest nuclear test (Reuters)
  • Hedge Fund and Cybersecurity Firm Team Up to Short-Sell Device Maker (NYT)

A Political Hurricane Is About To Sweep Across Europe

If you’ve been paying attention, you could see this coming a mile away. Brexit is just the start of a much, much bigger trend..."The backlash we are witnessing represents a worldwide revolt against globalism and the disconnected and hopelessly corrupt status quo."