What’s Really Killing Capitalism
VANCOUVER, Canada – Hillary is taking the bull by the horns… and putting the knife between her teeth. She is a “take-charge” candidate and aims to let us know.
Yes, earlier his week, she promised to improve capitalism. Now, it’s the climate of planet Earth that has her attention. She’s going to make it better by decreasing carbon emissions – by force, of course.
Saints preserve us! Now she wants to “save the planet” too. Ironically not even the reds and professional scaremongers are happy with her “climate change” contortions (as seen in the Guardian, a hotbed of climate alarmism and a preferred medium of assorted limousine socialists).
The British Referendum Looms
For the last couple of months (and years, for that matter) Greece has become synonymous with trouble in the euro zone and the European Union. As we’ve previously mentioned, in the absence of an extraordinary event, the risks in connection with Greece are limited.
The country contributes less than 2% to the European Union’s GDP and state institutions or institutions backed by the state now hold over 80% of the Greek debt. A debt restructuring or even a Grexit would pose neither a risk to the financial system, nor to the European economy.
David Cameron and Nigel Farage, as seen by Steve Bell
Austria’s Constitutional Court Decides to Uphold Property Rights
To everybody’s vast surprise, Austria’s constitutional court has decided not to side with the government in the infamous Hypo Alpe Adria (HAA) case. The bank went belly-up after the 2008 crisis and slowly but surely it emerged that it represented a financial catastrophe of truly stunning proportions.
Incompetence on a rarely seen scale, but probably also fraud (although that angle has yet to be pursued by the judiciary) ultimately produced the biggest de facto (if not de iure, yet) insolvency in Austria’s history.
Hypo Alpe Adria – a giant house of cards that imploded in the course of the financial crisis.
Photo credit: hypo-alpe-adria.hr
The Federal Reserve recently released a research article titled “How Sensitive Is Housing Demand to Down Payment Requirements and Mortgage Rates?”
Formerly ruling over rooms full of really smart guys: ex-Fed chairman Ben Bernanke
Photo credit: Karen Bleier / AFP
Greece’s Citizens Know More than Paul Krugman
One of the interesting dynamics in Greece is the continued attachment of the Greek population to the Euro. All the polls show 60-70% majorities for staying in the euro zone, notwithstanding the ravages of austerity. But there is a very simple explanation for this paradox. As much as the Greeks blame the rest of Europe, and especially the Germans, for their problems, they understand very well that nothing is worse than their home-grown politicians.
We generally don’t make the mistake of overestimating the competence of Paul Krugman on this site (PT) …
Photo credit: David Levene
Easy Money … Hard Times
VANCOUVER, Canada – What would the world do without well-intentioned, earnest, and intelligent public servants like Hillary Clinton? We don’t know. But we’d like to find out!
“And this afternoon, right after I’ve saved the planet from catastrophic anthropogenic global warming, I will save capitalism too…” What would capitalism do without Hillary Clinton?
Photo credit: Becker / AP
Equity Risk Is Increasingly Non-Existent… By The Numbers
The concept of risk for hedge fund managers is a constant concern. The internal monologue goes something like this…“what’s my downside if I initiate this position…how much can I lose if I am not right?”
The real answer is that you really have no idea…despite best efforts…even with stop losses [which I abhor]. The true, measurable risk of any position is only exactly known after you liquidate the position. Plus, risk management is more capital management than single stock management.
Little did he know how it would all end …
Cartoon via wallstreetsurvivor.com
No Trend Uniformity
As John Hussman points out in his most recent weekly missive, the stock market currently reflects all the characteristics observed near previous major market peaks. Apart from the more obvious ones, such as overvaluation and lopsidedly bullish sentiment which have been with us for some time, the market’s internals continue to deteriorate. This makes the current situation especially dangerous. As Hussman notes:
“When extreme valuations and lopsided bullish sentiment are joined by deterioration in market internals, one faces an environment that couples compressed risk premiums with increasing risk aversion. Throughout history, severe market losses and crashes have nearly always been the result of an upward spike in previously compressed risk premiums.”
Photo credit: Alamy
More Articles of Interest:
- Gold Panic
- Venezuela's Hyperinflation Crack-Up Boom on its Way to Outer Space
- Misunderstanding Gold Demand
- Italy – Non-Performing Loans Hit a New Record High
- Gold and the Grave Dancers
- Should You Buy a House?
- The US Stock Market and a Major Recession Warning
- The China Syndrome
- Bank of Canada Decides More Bubble-Blowing is Needed