The Tide Is Turning Australia
We interrupt Australia’s slow-motion descent into medical fascism to report on a big story from China. Greg Canavan reported on the looming collapse of property developer Evergrande last week.
You Never Go Full Australia
I have friends and family who are still in Australia. I care deeply about what’s happening. It’s sad and unnerving to watch. But it’s a complicated issue.
A Low, Dishonest Decade: Successful Financial Markets Can Still Collapse
Something can appear orderly, methodical, and even successful for many years, yet still collapse in a matter of days. It’s just as true in financial markets as it is in geopolitics…
The Epoch of Belief — The Simplest Thing of All to Do is to Follow The Money
The simplest thing of all to do is to follow the money. We knew a wall of liquidity would hit financial markets and the economy once the fiscal and monetary policy responses to COVID got…
Drowning in Cash — The Plumbing of US Financial Markets
They revealed there are some serious problems in the plumbing of US financial markets. There are lots of questions to begin a new week and a new month. The last few days of July were…
We Have Markets That Aren’t Really Markets Anymore
We have central banks playing a leading role in the support of higher and higher stock prices (and lower and lower bond yields). We have markets that aren’t really markets anymore.
To Infinity and Beyond — Corporate Profits Beating Global GDP Growth
There IS an underlying law of economic gravity at play here. Companies can’t infinitely grow earnings faster than GDP growth. You can cut costs (lower wages through automation)…
Too Much Liquidity with No Place to Go — New Stock Market Highs
Money market funds tend to invest in short-term government Treasury bills and corporate debt
How I Learned to Love Lockdowns — Buying Growth Stocks
You have a binary outcome in a world of financial repression. You can go full ‘risk-on’ and buy the most aggressive growth stocks and momentum plays…
The Knowledge Virus — Too Much Cash in The System
Market participants (mostly money market funds that invest in short-term corporate and government debt) parked US$756 billion in cash with the Fed overnight.