Global Market Commentary, Analysis and Investments
Congratulations, Federal Reserve! Your zero interest rate policy tempted the world’s most-sophisticated bank to create its own toxic blend of interest income in the derivatives markets.
JPMorgan made headlines late last week for a $2 billion trading loss that’s likely to grow over time. Today, the bank’s CIO fell on his sword for the trading gaffe. Ina Drew, a 30-year veteran of the firm decided today was a good day to “retire” from his trading desk.
[Read more...]Congratulations, Federal Reserve! Your zero interest rate policy tempted the world’s most-sophisticated bank to create its own toxic blend of interest income in the derivatives markets.
JPMorgan made headlines late last week for a $2 billion trading loss that’s likely to grow over time. Today, the bank’s CIO fell on his sword for the trading gaffe. Ina Drew, a 30-year veteran of the firm decided today was a good day to “retire” from his trading desk.
[Read more...]China is falling apart.
Bond yields are falling.
Copper is sinking.
Oil is sliding.
US stocks, too, slipped all last week.
Even gold…that old stalwart friend…turned its back on us last week, closing the week at $1,585.
Oh, dear, dear reader…everything is giving way. What can we hold fast to?
[Read more...]China is falling apart.
Bond yields are falling.
Copper is sinking.
Oil is sliding.
US stocks, too, slipped all last week.
Even gold…that old stalwart friend…turned its back on us last week, closing the week at $1,585.
Oh, dear, dear reader…everything is giving way. What can we hold fast to?
[Read more...]“Stay at home is still the norm for Americans,” I observed in yesterday’s Daily Reckoning. “but it’s a norm that is slowly fading. Every billion-dollar tick of the government debt clock, every expansion of the government’s regulatory apparatus, every overreaching judicial decision made in the name of a compelling public need,…every intellectually tortured discovery of a new meaning in the Constitution’s 4,400 old words leaves a few thousand more people wondering how prudent it is to consign all their eggs to a single national basket.
[Read more...]“Stay at home is still the norm for Americans,” I observed in yesterday’s Daily Reckoning. “but it’s a norm that is slowly fading. Every billion-dollar tick of the government debt clock, every expansion of the government’s regulatory apparatus, every overreaching judicial decision made in the name of a compelling public need,…every intellectually tortured discovery of a new meaning in the Constitution’s 4,400 old words leaves a few thousand more people wondering how prudent it is to consign all their eggs to a single national basket.
[Read more...]Gold down below $1,600! Is the bull market in gold finally over?
Nah…let’s change the subject.
Today, our hearts go out to the poor 1%…
Yes, dear reader, they’re blamed for the crisis…
They’re reviled, calumnied, and criticized…
They’re hunted by the taxmen…
[Read more...]By keeping all your assets in the country where you live, you commit, ahead of time, to ratify whatever policy your home government might adopt, no matter how objectionable, unreasonable or pernicious that policy happens to be. If the next new mandate is “Register today to get a nail pounded into your head,” you’re already signed up.
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What Happens When the World Economy “Goes Japan”
The Dow sinking.
Gold sinking.
Oil sinking.
Copper sinking.
Yields sinking.
We struggled with this, Dear Reader. We meditated. We prayed. We drank heavily.
And finally…we overcame the rank desire to say: “We told you so!”
As you know, Martin Wolf, of The Financial Times, is the voice of The Economics Establishment. All that is great and good in the field — which isn’t very much — is given voice by Wolf. Then, it is acceptable for policymakers, Treasury ministers, and central bankers, not to mention the people you talk to at cocktail parties.
[Read more...]