Have you ever wondered who these people are? The people who decide how much capital should cost, how much credit and cash should be issued. You know, the twits who dream up QE, ZIRP and NIRP. Where do they come from? Who pays their wages? Where do they get these hair-brained ideas? Are they on… Read More
asymmetric payoff
The World’s Biggest Asymmetric Trade Just Got Bigger
Ten days ago China cut interest rates in an effort to free up credit and stimulate the economy. This is unlikely to have much of a positive effect on economic growth in China. Rather it is likely to compound the big problem that the Chinese currently face: exports becoming increasingly uncompetitive. China’s biggest problem is its… Read More
Stability vs Opportunity
Bernie Madoff promised investors above average, consistent year after year mathematically impossible returns. Investors fell for the high returns but what they REALLY fell for was the apparent consistency. The stability or returns, the certainty. Bond funds appeal to investors because they offer stable returns each year. Quantifiable and certain. Mutual funds tend to stuff… Read More
What a Disaster This Investment Has Been
When I was younger, 16 I think, I wanted to be George Soros. Horror, I know given that there are probably parts of the world I’d be dismembered in the streets for uttering such a comment. Grumpy old bastard with abhorrent political ideas. Yes, all true but at the time I wasn’t focused on any… Read More
