EURCollapses As ECB ‘Strawmans’ NegativeRates (Again) http://feedly.com/k/1jmDOqP Given our earliercommentonthecollapseofEuropeanearnings, it is perhaps unsurprisng that the CEB is throwing everything at the problem of a strong EUR: *ECBSAIDTOWEIGHMINUS 0.1% DEPOSITRATEIF MORE EASINGNEEDED Of course, we await the official denial but suspect this is nothing more than attempt to gauge market response to the policy idea (just as Draghi did in May). For now, EURUSD has … Seguir leyendo EUR Collapses As ECB ‘Strawmans’ Negative Rates (Again)

A Simple QuestionforAustrianApriorists http://feedly.com/k/1cGx84o The Austrian school is famous for its apriorist economic method called praxeology. This, in its Misesian form, takes up the notion of Kantian synthetic a priori knowledge and holds that praxeology can arrive at economic theories that describe reality and in an a priori manner with necessary and apodictic truth, so that empirical evidence cannot refute praxeologicaltheories. A simple question can … Seguir leyendo A Simple Question for Austrian Apriorists

Sobre utopías II http://feedly.com/k/1888Xig Cornucopia. El cuerno de la abundancia. La utopia de los no utópicos. Fuente: Focke–Museum Esta entrada es una pequeña addenda sobre el articulo anterior "sobre utopias I" En él, había planteado la utilidad de disponer una utopía en el sentido de que ésta nos indica en todo momento si el camino que estamos siguiendo es o no el correcto. Se ha … Seguir leyendo Sobre utopías II

JeremyGrantham’sGMO: "The S&P IsApproximately 75% Overvalued; ItsFairValueIs 1100" http://feedly.com/k/1b4uWqy It has been a while since we heard from the rational folks over at GMO. Which is why we are happy that as every possible form of bubble in the capital markets rages, Jeremy Grantham lieutenant Ben Inkster was kind enough to put the raging Fed-induced euphoria in its proper context. To wit "the U.S. stockmarketistradingatlevelsthat … Seguir leyendo Jeremy Grantham’s GMO: “The S&P Is Approximately 75% Overvalued; Its Fair Value Is 1100”

"Bubble" InRiskiestCreditExceeds 2008 Peak http://feedly.com/k/1jhIOwN As wewarnedtwomonthsago, thebubbleincreditmarkets (which if you ask anyone at the Fed, except Jeremy Stein, does not exist) is nowhere more evident than in the explosive growth of so-called cov-lite loans. While total volumes of cov-lite loans are already at record, as theFTreports, wenowhave 55% of new leveragedloans come in “cov-lite” form, fareclipsingthe 29% reachedattheheightoftheleveragedbuyout boom justbeforethefinancial crisis. LBOmultipleshavereachedrecordhighs and demand … Seguir leyendo “Bubble” In Riskiest Credit Exceeds 2008 Peak

TheBiggestDisasterin SE Asia WaitingtoHappen: Thailand’sMassive Real EstateBubble http://feedly.com/k/1h04NeN In 1997, the SE Asian Tigers all faced severe economic stresses, partially triggered by a primarily foreign capital-funded massive real estate bubble in Thailand. Today the EXACT same thing is happening as untempered foreign investment into Thailand’s real estate market has created not a “soaring” real estate market as economists always incorrectly explain them, but massive real … Seguir leyendo The Biggest Disaster in SE Asia Waiting to Happen: Thailand’s Massive Real Estate Bubble

Ritholtz: Has theDollarReallyLost 97% ofItsValue? – Bloomberg http://feedly.com/k/1ispD5G shared via http://feedly.com Seguir leyendo Ritholtz: Has the Dollar Really Lost 97% of Its Value? – Bloomberg