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The World Is Awash in Oil, False Assurances, Magical Thinking and Complacency as Global Demand Careens Toward a Cliff

The World Is Awash in Oil, False Assurances, Magical Thinking and Complacency as Global Demand Careens Toward a Cliff This collapse of price will manifest in all sorts of markets that are based on debt-funded purchases of desires rather than a warily prudent priority on needs. Since markets are supposed to discover the price of excesses and scarcities, […]

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Risk On/Risk Off: What Schizophrenic Markets Are Telling Us

Risk On/Risk Off: What Schizophrenic Markets Are Telling Us These trends cannot be reversed with yet another rate cut or another “whatever it takes” announcement. In the conventional investment perspective, risk-on assets (i.e. investments with higher risks and higher potential returns) such as stocks are on a see-saw with risk-off assets (investments with lower returns and lower risk, such as […]

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Dollar Demand = Global Economy Has Skidded Over the Cliff (March 18, 2015)

Dollar Demand = Global Economy Has Skidded Over the Cliff   Borrowing in USD was risk-on; buying USD is risk-off. There is a lively debate about the global demand for U.S. dollars: Global finance faces $9 trillion stress test as dollar soars (Telegraph.co.uk) Is There a US$ Shortage? Will it Sink the Global Economy? Again? (Mish) The Dollar […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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