"..the hurricane is not more or less likely to hit because more hurricane insurance has been written. In the financial markets this is not true. The more people write financial insurance, the more likely it is that a disaster will happen, because the people who know you have sold the insurance can make it happen. So you have to monitor what other people are doing.”
"In the movie he was portrayed as the moral compass. After hearing his praise for the awesome job Paulson did by saving the criminal Wall Street banks with taxpayer money, I think the justice and righteousness stuff is overdone. Earlier in his talk he said banks existed to “fuck you” – his exact words. Then later he says we had to save them or the world would have ended."
The main tools governments have been incorporating is Relative Currency Devaluation along with Relative Money Printing, all of which are hard to pull off with a Standardized Centralized Approach which is the European Union.
"The opinions of experts concerning the future are accorded great weight . . . but they’re still just opinions. While I take a dim view of forecasts, and especially of opinions presented as facts, I do believe there are such things as facts. Unfortunately, however, the concept of 'facts' is among the casualties of the increasingly partisan environment. Recently we have seen both the elevation in status of 'non-facts', as well as the tearing down of 'real facts'."
After hitting a recent high of $34 billion in gains three months ago, the reported amount of net unrealized gains has tumbled, and from a gain it has turned into a loss of $14 billion as of the week ended December 14. On a 4-week rolling basis, the change amounts to $37 billion in losses, the biggest monthly drop since the 2013 Taper Tantrum.
Another day, another prominent hedge fund shutters it doors in less than a year after launching a world in which investors increasingly skip "active investing", and instead give their cash to far cheaper, and far more effective - if only for the time being - "passive" strategies.
It is official: Trump or no Trump, foreign central banks, wealth funds, and virtually every other official institution in possession of US paper is liquidating their Treasury holdings at a record pace, amounting to an unprecedented $400 billion in the past 12 months.
"Looking further ahead, the most worrying signs relate to the risk of greater protectionism. Those signs have been multiplying in recent years, and prospects have darkened considerably with the most recent political events,” said Claudio Borio, concluding that "there would be no winners, only losers. Lower global growth, and possibly higher inflation, would benefit no one."
It is official: Trump or no Trump, foreign central banks, SWFs and virtually every other official institution in possession of US paper, and as of this month, private investors too, are liquidating their Treasury holdings at a record pace.
In the US, easy central bank policy leads to greater corporate bond issuance and leverage, which in turn result in companies buying back their own equity - and to that extent QE is now residing on individual company balance sheets. In contrast, in Japan the BOJ simply buys Japanese equities directly. This difference is important
It is becoming increasingly obvious that foreign central banks, sovereign wealth funds, reserve managers, and virtually every other official institution in possession of US paper, is liquidating their holdings at a very disturbing rate.