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Tag Archives: risk
Why Our Financial System Is Like the Titanic
Why Our Financial System Is Like the Titanic The “unsinkable” global financial system is rushing headlong toward its encounter with the iceberg. Why did the Titanic sink, despite being considered unsinkable? The conventional answer is the design of its watertight compartments was flawed: the watertight bulkheads were limited in height to a few feet above the […]
The Narrative Fix Is In
The Narrative Fix Is In On August 2, 2012 Mario Draghi gave the most disastrous ECB press conference of all time. The market anticipation was enormous leading up to the event, as this was the moment where the ECB would unveil the Outright Monetary Transactions (OMT) program — a new, ultimate weapon to be deployed […]
Indian Point: Fukushima’s Mini-Me
Indian Point: Fukushima’s Mini-Me Indian Point Nuclear Power Plant New York continually leaks radioactivity into the Hudson River. This has been going on for years. Seriously! Meanwhile, New York’s Governor Andrew Cuomo agrees with advocacy groups such as Riverkeeper, Physicians for Social Responsibility, and The Sierra Club to close Indian Point. Why? Environmentalists claim the […]
Is Any Asset Safe?
Is Any Asset Safe? QUESTION: Hi Marty, I have been following your blog for several years and attended your “Cycles of War” presentation in Philadelphia. It has been rewarding and very educational. My question, is there any one investment that is a safe haven in the chaos that approaches? I recently sold my company and placed […]
Are Asian Central Bankers Even Crazier Than Our Own?
Are Asian Central Bankers Even Crazier Than Our Own? That the world’s central bankers get a lot of things wrong, deliberately or not, and have done so for years now, is nothing new. But that they do things that result in the exact opposite of what they ostensibly aim for, and predictably so, perhaps is. […]
Think Another Crash Is “Impossible”? Think Again
Think Another Crash Is “Impossible”? Think Again The confidence that risk can be quantified and mitigated is misplaced. If there are limits on what we can know of the future–and clearly there are–this sets limits on our ability to quantify and mitigate risk. Longtime correspondent Lew G. submitted this thought-provoking riff on the system’s intrinsic capacity […]
Rising Systemic Risk for all Markets
Rising Systemic Risk for all Markets We are on the precipice of what can only be described as rising systemic risk for all markets. The Fed is now hinting that banks should prepare for NEGATIVE INTEREST RATES and this insanity of following the crowd is undermining the entire world economy. The increasingly unstable footing that we find ourselves […]
Rewardless Risk
Rewardless Risk Faramir: Then farewell! But if I should return, think better of me. Denethor: That depends on the manner of your return. – J.R.R. Tolkien “The Lord of the Rings” (1954) I’m going full-nerd with the “Lord of the Rings” introduction to today’s Epsilon Theory note, but I think this scene — where Denethor, the […]
How The Masses Deal With Risk (And Why They Remain Poor)
How The Masses Deal With Risk (And Why They Remain Poor) Last week I discussed how humans are wired to pay attention to scary things.In financial speak: risk. Darwinism has chastised those who ignore risk by rewarding them with an early grave, and by process of elimination rewarded those who stay out of the cross hairs. […]
Risk Premium Returns To Oil Markets As Geopolitical Tensions Rise
Risk Premium Returns To Oil Markets As Geopolitical Tensions Rise Geopolitical risk premiums are likely to return to oil markets as the possibility of an attack on a large petroleum facility grows significantly amid rising tensions in the Middle East, possibly putting a floor on prices. “The risk of an attack is greater than 50pc, which […]
There Will Be Blood – Oil Train Regulations Fail To Address Known Risks
There Will Be Blood – Oil Train Regulations Fail To Address Known Risks “Railroad rules have been written in blood.” This line was included in the annual report of the Commissioner of Railroads for the state of Michigan — in 1901. The idea was that safety rules were only implemented when enough blood had been spilled. One hundred […]
Nassim Nicholas Taleb on the Real Financial Risks of 2016
PHOTO: GETTY IMAGES Nassim Nicholas Taleb on the Real Financial Risks of 2016 Worry less about the banking system, but commodities, epidemics and climate volatility could be trouble How should we think about financial risks in 2016? First, worry less about the banking system. Financial institutions today are less fragile than they were a few […]
Bank of America Explains How Central Banks Rigged And Manipulated The Market
Bank of America Explains How Central Banks Rigged And Manipulated The Market It used to be the provenance of “conspiracy theorists” – alleging that central banks have manipulated, rigged or otherwise broken the “efficient market.” That is no longer the case. As we previously showed, now even the big banks admit it. However, since for some […]
2016 Is An Easy Year To Predict
2016 Is An Easy Year To Predict No year is ever easy to predict, if only because if it were, that would take all the fun out of life. But still, predictions for 2016 look quite a bit easier than other years. This is because a whole bunch of irreversible things happened in 2015 that […]
