November 2011 Monthly Archive

More happy juice for the financial economy – a dangerous game!

Risk assets love this news this morning. The euro is jumping and stocks are rocking and rolling…good for financial market players, but we’ve seen this before–credit thrown on top of credit to solve a problem that was caused by too much credit in the first place. Read more

Mind the Ghost of Currency Currents Past.

We have been saying for years now that Germany is sucking the wind out of Europe. But, then again that should be a surprise to exactly no one who ever bothered to consider the initial structure of the so-called common monetary union. Read more

Going around the horn of plenty … circa 2009.

The cover story was basically a one-question poll of some of the world’s most popular, and dare I say respected, economic and financial minds. With the exception of a few details, the questions and answers still apply today. Read more

What comes after B?

Self-reinforcing downside of G-3 feedback loop being driven by the Double-Ds of Deflation – deleveraging and falling demand Read more

Same old solution is a setup for 5,000 on the Dow. Crazy, I know!

You remember the old lawyer joke: Why do researchers prefer to use lawyers instead of rats in laboratory experiments? Because there are certain things rats won’t do! Read more

The Ebb and Flow of Hope in the Eurozone

Each time I think the eurozone is backed into a corner, it manages to find a new corner through the magic of political persuasion and a market belief in financial engineering. Or a simpler summary may suffice: Leaders in the eurozone continue to pull rabbits out of their hat. But even rabbits can reproduce only so fast! Read more

The Global Initiative and ECB to the Rescue

Italy to vote on cuts, US applies pressure: Italy’s Senate is set to vote on austerity measures demanded by the European Union to avert a euro zone meltdown, after U.S. President Barack Obama ratcheted up pressure for more dramatic action from the currency bloc. Read more

My confidence fairy is better than your confidence fairy!

If you’re not familiar with the term, I cannot take credit for it. Paul Krugman deserves the accolades for ‘confidence fairy.’ Read more

Talking about false beacons, is gold one? Are earnings reports?

You know how gold is supposed to work, right? It maintains its value over time, despite the rampant central-bank-induced inflation of fiat money, right? Read more


It is sad to see how easily just one hubris-filled hack can so easily devastate a company. At least now we have a new term to add to the financial world’s expanding lexicon of ugliness. Read more

Copper: stomach-churning, to say the least …

Boy oh boy can copper move fast. It can also change directions rather sharply. And that doesn’t usually make for a settling combination. Read more