Thursday The markets are manifesting an exuberant and giddy blend of hope and fear. The primary cause is the seemingly bottomless credit being pumped into the system. Crypto Mania (CryMan) will end up more famous than Tulip Bulb Mania as an example of group nuttiness. The problem is that either the credit will stop, or that the credit will become greatly … [Read more...]
The Day the Banks Don’t Open
Friday The day that the banks don’t open is the day that the jig is up. How far away is that? I just don’t know and no amount of noggin strain will produce that datum. It cannot be known. That said, I had dinner in Sydney last night with the legendary Keith Weiner. He is of the opinion that the strength of the US$ will see continued capital inflows into … [Read more...]
Australian Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry
Tuesday The Australian Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has confirmed that some dubious characters have been running the banking industry in this country. Importantly, and not being discussed, is that it also confirms that ASIC And APRA, the large-budget organizations responsible for supervision of the banks … [Read more...]
Mother and Father of All Evil
Monday “… I say I will emerge with victory in the fight against this curse of interest rates. Because my belief is: interest rates are the mother and father of all evil.” Recep Tayyip Erdogan – Turkish president (who is in control of the Turkish central bank) Thus we have the one Gold oz to Turkish lira graph It is not too hard to predict that Erdogan will not … [Read more...]
Zombieland
Wednesday Central bank bluster notwithstanding, interest rates will continue to trend downward. It can be no other way. The servicing of sovereign zombie debts insists that interest rates don’t rise. And then there are the zombie debts and zombie jobs of the zombie corporations that facilitate employees taking on their own zombie loans. The aggregate of all that is what … [Read more...]