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$17.5 Million In Revenue And $5.4 Billion In Losses: Archegos Was A 300x-Levered Time Bomb For Credit Suisse
$17.5 Million In Revenue And $5.4 Billion In Losses: Archegos Was A 300x-Levered Time Bomb For Credit Suisse A bank’s prime brokerage unit is supposed to be a safe, reliable and predictable generator of revenue, resulting from modest-margin transactions with a bank’s hedge fund client base. It’s safe because the bank’s risk managers scour the bank’s exposure to various […]
The $2.3 Quadrilliion Global Timebomb
THE $2.3 QUADRILLION GLOBAL TIMEBOMB Credit Suisse is hours from collapse and the consequences could be a systemic failure of the financial system. Disappointingly, my dream last night stopped there. So unfortunately I didn’t experience what actually happened. As I warned in last week’s article on Archegos and Credit Suisse, investment banks have created a timebomb […]
THIS is What a Margin Call Looks Like: the Consequences of Stock Market Mania
THIS is What a Margin Call Looks Like: the Consequences of Stock Market Mania Financial World A couple of weeks ago, we reported on various examples of stock market mania that have exploded in 2021. Now it’s time to examine a major event that could be a clear harbinger for “the big one” to come. It starts […]
Rehypothecated Leverage: How Archegos Built A $100 Billion Portfolio Out Of Thin Air… And Then Blew Up
Rehypothecated Leverage: How Archegos Built A $100 Billion Portfolio Out Of Thin Air… And Then Blew Up One week after the biggest, and most spectacular hedge fund collapse since LTCM, we now have an (almost) clear picture of how Bill Hwang’s Archegos family office managed to single-handedly make a boring media stock the best performing […]
Coronageddon: Can a “Minsky Moment” be Avoided?
Coronageddon: Can a “Minsky Moment” be Avoided? There’s a chance that the coronavirus will be contained in the United States and that fewer people will be infected than in China or Iran. But there’s also a possibility that the highly-contagious virus will spread and that there will be sporadic outbreaks across the country. If this […]
The Decline and Fall of the European Union
The Decline and Fall of the European Union This exhaustion of the neocolonial-neofeudal model was inevitable, and as a result, so too is the decline and fall of the European integration/exploitation project. That a single currency, the euro, would fracture rather than unite Europe was understood long before the euro’s introduction as legal tender on […]
Market Commentary: Issues 2019
Market Commentary: Issues 2019 When I began posting the CBB some twenty years ago, I made a commitment to readers: “I’ll call it as I see it – and let the chips fall where they will.” Over the years, I made a further commitment to myself: Don’t be concerned with reputation – stay diligently focused […]
The scenarios of the collapse
The scenarios of the collapse 2019 has started more calmly after a very volatile year-end in the markets. Focus has been on the trade deal between China and the US and the words of the central bankers, most notably those of Jay Powell. However, this is all just a distraction, a side-show. The market volatility […]
A Chinese recession is inevitable – don’t think it won’t affect you
A Chinese recession is inevitable – don’t think it won’t affect you A man sits on a rock near demolished in Xiancun, an urban village in Guangzhou, southern China. Photograph: Anadolu Agency/Getty Images When China finally has its inevitable growth recession – which will almost surely be amplified by a financial crisis, given the economy’s […]
Blain: Will The Fed Hike Unleash The “Swing” Moment When Suddenly Balance Is Lost?
Blain: Will The Fed Hike Unleash The “Swing” Moment When Suddenly Balance Is Lost? Fed, Stratospheric dangers, US corporate leverage and the greater competition to manage funds. “Of all extinct life-forms, dinosaurs are the most popular. Why that should be is not clear… ” All eyes on the Fed today. They will hike by 25bp […]
Global Debt Hits Record $237 Trillion, Up $21TN In 2017
Global Debt Hits Record $237 Trillion, Up $21TN In 2017 Last June we reported that according to the Institute of International Finance – perhaps best known for its periodic and concerning reports summarizing global leverage statistics – as of the end of 2016, in a period of so-called “coordinated growth”, global debt hit a new […]
The World Embraces Debt At Exactly The Wrong Time
The World Embraces Debt At Exactly The Wrong Time Self-destruction usually happens in stages. At first there’s a binge in which the thrill outweighs the sense of transgression. This is usually followed by remorse, acknowledgement of risks, and an attempt to reform. But straight-and-narrow is exhausting, and because of this is frequently just temporary, eventually […]
