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Tag Archives: risk
Schäuble Warns of Coming Economic Crisis
Schäuble Warns of Coming Economic Crisis In his farewell interview for the Financial Times, Federal Minister of Finance Wolfgang Schäuble warned of a new global financial crisis predicated upon the Quantity of Money theory that the central banks had pumped trillions of dollars into the financial system that is creating a risk of “new bubbles”. […]
Schäuble: Another Financial Crisis Is Coming Due To Spiraling Global Debt, “New Bubbles”
Schäuble: Another Financial Crisis Is Coming Due To Spiraling Global Debt, “New Bubbles” Following the disappointing for Angela Merkel and her CDU German election results, which propelled the populist AfD into Germany’s political establishment with 92 members of parliament, the first casualty was Germany’s finance minister, Wolfgang Schäuble, who in a few days will relinquish […]
Iran Threatens America: If New Sanctions Pass, US Military “Would Be At Risk”
Iran Threatens America: If New Sanctions Pass, US Military “Would Be At Risk” In the coming days, president Trump is expected to announce that he will decertify the Iran Nuclear Deal, a step that potentially could cause the historic Obama-era accord to unravel. Under the 2015 deal, Iran agreed to limit its disputed nuclear program […]
The Pricing of Risk is Kaput
The Pricing of Risk is Kaput US Treasury Yield v. Euro “Junk Bond” Yield. A new record in central-bank engineered absurdity. US Treasury Securities with longer maturities fell this morning, with the 10-year Treasury yield rising above 2.37% early on and currently trading at 2.34%. This is still low by historical standards, and it’s still in […]
Eric Peters On Tipping Points: “It All Worked Incredibly Well, Until It Blew Up”
Eric Peters On Tipping Points: “It All Worked Incredibly Well, Until It Blew Up” Two years ago, long after we first suggested that the transformation of VIX from a measure of implied market volatility to a reflexive instrument that can be traded – and thus influence the underlying assets whose volatility it was supposed to […]
What Could Go Wrong? For Public Pensions, More Than You Know
What Could Go Wrong? For Public Pensions, More Than You Know Here’s a loaded question for you: “What could go wrong?” In some contexts, it can express mistaken confidence, as in, “Sure I’ll put my hand between that crocodile’s jaws. What could go wrong?” Investors should ask the same question before entering a position. “What […]
Former BIS Chief Economist Warns “More Dangers Now Than In 2007”
Former BIS Chief Economist Warns “More Dangers Now Than In 2007” Having warned in the past that “the system is dangerously unacnhored,” former chief economist of the Bank for International Settlements, William White, told Bloomberg TV overnight that the current situation “looks very similar to 2008,” adding that OECD sees “more dangers” today than in […]
Three Massive Bubbles in 17 Years: When Will This One Bust? A 60% Decline Coming?
Three Massive Bubbles in 17 Years: When Will This One Bust? A 60% Decline Coming? John Hussman’s presents a message no one wants to hear because nearly everyone is too busy believing for the third time in 17 years that “It’s different this time”. Last week Hussman wrote about Valuations, Sufficient Statistics, and Breathtaking Risks. This […]
William Perry Interview: Former Defense Secretary Who Negotiated With N. Korea Warns Civilization Is at Risk
William Perry Interview: Former Defense Secretary Who Negotiated With N. Korea Warns Civilization Is at Risk William Perry in 2015. (DoD / Glenn Fawcett) William Perry has had a long career in government, serving in the Pentagon under Presidents Carter and Reagan before becoming President Clinton’s secretary of defense in 1994. “We stand today, I believe, […]
The Coming CONTAGION – CDS Sales Double from 2016
The Coming CONTAGION – CDS Sales Double from 2016 The issue of credit default swaps (CDS) in 2017 is running at twice that of last year reflecting rising concerns of another coming crash. The number of hedge funds and banks dealing with highly sensitive credit derivatives has reached almost $30 billion in 2017 up from […]
“Armageddon Risk” Returns: North Korea Predicts “Catastrophe” As Massive U.S. War Games Begin Monday
“Armageddon Risk” Returns: North Korea Predicts “Catastrophe” As Massive U.S. War Games Begin Monday Traders barely had time to enjoy the lull from the “Armageddon trade” – the rising possibility of a nuclear exchange between the US and North Korea, which peaked over the weekend when various US officials said a nuclear war is not […]
Central Banks Are Hiding the True Price of Risk
Central Banks Are Hiding the True Price of Risk If you invest your money, you will have to deal with numerous risks. For instance, if you buy a bond, you run the risk of the borrower defaulting or being repaid with debased money. As a stock investor, you face the risk that the company’s business […]
Whose Banks Are Riskiest: A Surprising Answer From The BIS
Whose Banks Are Riskiest: A Surprising Answer From The BIS When one thinks of unstable, risky banking systems, the first thing that comes to mind are visions of insolvent, state-backed building – with or without long ATM lines – in China, Greece, Italy or, in recent times, Germany. However, according to the most recent report […]
Fake Risk, Fake Return?
Fake Risk, Fake Return? With seemingly everyone from the blogosphere to the Tweeter-in-chief chiming in on fake news, have investors considered their risk/return profile may also be “fake”? When it comes to investing, who or what can we trust, is the market rigged, and why does it matter? For eight years in a row now, […]
People Are Suddenly Very Worried About China
People Are Suddenly Very Worried About China Considering that in the past 3 months the only daily topic of relevance for the media has been “Donald Trump” both in the US and abroad, one would assume that when it comes to global policy uncertainty the primary source would be, record S&P 500 paradoxically notwithstanding, the […]



