Tag Archives: risk

Now That Everyone’s Been Pushed into Risky Assets…

If we had to summarize what’s happened in eight years of “recovery,” we could start with this: everyone’s been pushed into risky assets while being told risk has been transformed from something to avoid (by buying risk-off assets) to something … Continue reading

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The Thorniest Policy-Question that President Trump Will Face

Eric Zuesse, originally posted at strategic-culture.org A decision must be made at the start of Donald Trump’s Presidency on one issue, which will shape both his foreign and domestic policies, and so his entire Presidency. Mark Strauss, the Editor of the Bulletin … Continue reading

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Sorry, Central Banks: Risk and Volatility Cannot be Extinguished

The unspoken claim of central bank policy is that risk can be extinguished by intervention/manipulation: once the Fed has your back, i.e. is supporting the market, risk disappears, and the easy profits flow to those who buy the dips with … Continue reading

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Why Real Reform Is Impossible: We Can’t Believe the Mighty Titanic Could Actually Sink

Why did passengers remain on the Titanic even as its bow sank deeper into the ice-cold Atlantic? They believed the experts and authorities because they wanted to believe the ship was “unsinkable.” And why did they want to believe the … Continue reading

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Here’s Why All Pension Funds Are Doomed, Doomed, Doomed

It’s no secret that virtually every pension fund is dead man walking, doomed by central banks’ imposition of low yields on safe investments, i.e. Zero Interest Rate Policy (ZIRP). Given that both The Economist and The Wall Street Journal have … Continue reading

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We’re in the Eye of a Global Financial Hurricane

The Keynesian gods have failed, and as a result we’re in the eye of a global financial hurricane. The Keynesian god of growth has failed. The Keynesian god of borrowing from the future to fund today’s consumption has failed. The … Continue reading

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2016 Theme #5: The Systemic Failure of High Finance

A number of systemic, structural forces are intersecting in 2016. One is the failure of high finance to fix the global economy’s systemic problems. The operative conceit of the past 7 years has been that high finance can fix whatever’s … Continue reading

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Perhaps This Is Obama’s Grand Strategy

Eric Zuesse Washingtonsblog’s anonymous founder and principal commentator is one of the most deeply knowledgeable writers on current events, and on July 19th he headlined “Governments Worldwide Will Crash the First Week of October … According to 2 Financial Forecasters.” He noted that both Martin … Continue reading

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China’s Shenzhen Stock Exchange: The Sky’s the Limit, Baby!

In the event you haven’t heard about the stock bubble currently inflating in China, please take a quick look at these two charts of the Shenzhen Composite: This second chart displays the Shenzhen’s price-earnings ratio (PE), a widely used measure … Continue reading

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The Central Problem with Central Banks: They Become the Greater Fools/Bag-Holders

Those who are confident the central banks can print unlimited money may find there are political and financial consequences to such extremes that cannot be foreseen. The central problem with central banks is their mandate now includes propping up all … Continue reading

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Innovate or Die

Collaboration, innovation and risk are all intrinsic to adaptation. Without adaptation, every system eventually perishes once conditions change. One feature of capitalism that is rarely discussed is the premium placed on cooperation and collaboration. The Darwinian aspect of competition is … Continue reading

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The Changing World of Work 3: “Full-Stack” Skills

More important than being a full-stack employee is owning a full stack of skills. My longtime friend G.F.B. sent me an article on the emerging value of tech-savvy generalists: The full-stack employee by Chris Messina: Nearly two years after I … Continue reading

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The Changing World of Work 2: Financialization = Insecurity

Promises of wealth and security are far more contingent than is being advertised. The Millennial Generation, if we’re to believe various polls, aspires to either make boatloads of money on Wall Street, or secure a can’t-be-fired job in the government. … Continue reading

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Will Cash Always Be Trash, Or Will It One Day Be King?

When the phantom wealth evaporates and risk assets go bidless, cash will once again be king, for the simple reason there will be so little of it. Occasionally it’s a good idea to step away from the daily grind to … Continue reading

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Should I Buy a House in 2015?

No one can answer that question for anyone else, but it seems prudent to ask the question in the context of an Echo Bubble in valuations that appears to be deflating. Readers often ask me if now is a good … Continue reading

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Central Banks Create Deflation, Not Inflation

Financial and risk bubbles don’t pop in a vacuum–all the phantom collateral constructed with mal-invested free money for financiers will also implode. If there’s one absolute truism we hear again and again, it’s that central banks are desperately trying to create inflation. … Continue reading

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We’ve Habituated to a Rigged, Fraudulent Market

Fraud generates risk, and risk eventually breaks out in the “safest” parts of the financial plumbing, the ones nobody gives a second thought to because they’re “low risk.” Let’s go all the way back to the last time a central … Continue reading

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The Oil-Drenched Black Swan, Part 3: Multiple Risks, Multiple Unknowns

It is these unforeseeable and uncontrollable consequences that are poised to wreak havoc on the global financial system. Here’s the thing about risk: it bursts out of whatever is deemed “safe.” It wasn’t accidental that the Global Financial Meltdown originated in … Continue reading

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The Oil-Drenched Black Swan, Part 2: The Financialization of Oil

All the analysts chortling over the “equivalent of a tax break” for consumers are about to be buried by an avalanche of defaults and crushing losses as the chickens of financializing oil come home to roost. The pundits crowing about … Continue reading

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Which Cities/States Will Be the First to Default When the Economy Rolls Over?

What happens to local governments when the economy rolls over? Though we’re constantly reassured the “recovery” that’s stumbled for five years has years of strong growth ahead, history suggests the “recovery” is due to roll over. Few recoveries last longer than … Continue reading

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