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Tag Archives: Moral Hazard
Systemic Risks Abound
Systemic Risks Abound If you wanted to design a system guaranteed to collapse in a putrid heap, you’d make moral hazard ubiquitous and you’d make the system 100% dependent on a hubris-soaked faux savior. For the past 22 years, every time the stock market whimpered, wheezed or whined, the Federal Reserve rushed to soothe the […]
The Taper Next Door: Bank of Canada Cuts Bond Purchases by 25%. Total Assets Drop by 13%. Rate Hikes Moved Forward, Possibly July 2022
The Taper Next Door: Bank of Canada Cuts Bond Purchases by 25%. Total Assets Drop by 13%. Rate Hikes Moved Forward, Possibly July 2022 Housing craziness is front and center. The Bank of Canada, which already holds over 40% of all outstanding Government of Canada (GoC) bonds – compared to the Fed, which holds less than 18% […]
Warren Buffett Explains Bubbles: But He Doesn’t Know We Are In One
Warren Buffett Explains Bubbles: But He Doesn’t Know We Are In One Buffet explains bubbles: “People see neighbors ‘dumber than they are’ getting rich.” Warren Buffett explains Why Bubbles Happen Buffett was asked by CNBC’s Andrew Ross Sorkin if he is worried another crisis will happen again. “Well there will be one sometime,” Buffett said […]
Ron Paul Warns “The Conflict Between Government & Liberty Is At A Boiling Point”
Ron Paul Warns “The Conflict Between Government & Liberty Is At A Boiling Point” This is excerpted from the introduction of Ron Paul’s Liberty Defined: 50 Essential Issues that Affect Our Freedom. Liberty means to exercise human rights in any manner a person chooses so long as it does not interfere with the exercise of the […]
First Ocean Freight Rates Collapse to “Zero,” China Freight Index Plunges to Record Low, Bailouts Loom
First Ocean Freight Rates Collapse to “Zero,” China Freight Index Plunges to Record Low, Bailouts Loom The next stage of “Moral Hazard?” The amount it costs to ship containers from China to ports around the world has plunged to historic lows. As container carriers are sinking deeper into trouble, whipped by lackluster global demand and rampant oversupply […]
It Begins: Desperate Finland Set To Unleash Helicopter Money Drop To All Citizens
It Begins: Desperate Finland Set To Unleash Helicopter Money Drop To All Citizens With Citi’s chief economist proclaiming “only helicopter money can save the world now,”and the Bank of England pre-empting paradropping money concerns, it appears that Australia’s largest investment bank’s forecast that money-drops were 12-18 months away was too conservative. Over the last few months, in a prime […]
Losing Control
Losing Control Markets are beginning to signal that policy makers are losing control. Many second-order-effects of the unprecedented and experimental global actions taken since the 2008 crisis are beginning to manifest. There are always causes and effects that develop; but they do so at different speeds. Many actions in recent years have prioritized ‘benefits today’ […]
“Critical” Debt “Domino Chain” Threatens To Destabilize China’s Financial System, SocGen Says
“Critical” Debt “Domino Chain” Threatens To Destabilize China’s Financial System, SocGen Says Since the beginning of March when we first explained why QE (or at least some manner of “unconventional” monetary policy) may be inevitable in China, we’ve tracked developments around the country’s local government debt refi effort closely. For those in need of a […]
