This Boom/Bust show features a wide-ranging talk with Michael Hudson about the impact of the Swiss currency shock, the pending Greek elections, the effects of sanctions, and what the deteriorating Ukraine economy means for Europe.
Thursday, January 29, 2015
Posted by Yves Smith at 6:55 am |
When money was growing on trees even for junk-rated companies, and when Wall Street still performed miracles for a fee, thanks to the greatest credit bubble in US history, oil and gas drillers grabbed this money channeled to them from investors and refilled the ever deeper holes fracking was drilling into their balance sheets.
German losses on both official and private claims would be much higher if Greece exits the euro.
Today’s Water Cooler: Continued SNB fallout, murder at Gitmo?, Scott Walker comes up on the charts, Dalai Lama a Marxist, zombie cookies
Topics: Water Cooler
Posted by Lambert Strether at 1:55 pm |
Most readers are skeptical of Abenomics, and for good reason. This post gives an accessible discussion of why it has not worked.
Random variations, privatizing waivers, and cutting doctor’s fees for Medicaid by 48%, so many poor people won’t be able to find a doctor
A big puzzle, as oil prices have plunged and look unlikely to return to their former levels, is who is holding energy-related debt, particularly give the high level of issuance in 2014.
The recent expansion of US shale oil production has captured the imagination of policymakers and industry analysts. It has fuelled visions of the US becoming independent of oil imports, of cheap US gasoline, of a rebirth of US manufacturing, and of net oil exports improving the US current account. This column asks how plausible these visions are, and examines the evidence to date.
Hope you are able to swing by and visit our NYC meetup later today! Details:
247 Broome Street (between Ludlow and Orchard)
Subways: F to Delancy, J/M/Z to Essex, B/D to Grand Street
Starting at 5:00 PM (note Ten Bells opens at 5:00 PM, so if you get there a little early, don’t be alarmed)
Posted by Yves Smith at 12:01 am |
Swiss National Bank Shock: Biggest US Retail Currency Broker’s Equity Wiped Out; Others Suffer Major Losses
Even though traders say they like volatility, their attitude is straight out of Goldilocks: : not only is too little too bad, but so is too much. The recent oil price plunge has sent rattles across financial markets around the world, with more knock-on effects expect as shale gas players start to show signs of stress.
And today’s big event was so unforeseen as to verge on being in black swan terrain. The Swiss National Bank, which had a program in place to keep the euro from falling below 1.20 to the Swiss franc.
The Swiss National Bank abruptly terminated the cap today. The currency move was brutal.
Today’s Water Cooler: Swiss Franc shocker, Hillary clinches (not), cops pick up kids walking home from school, setting up your own cloud
This is a wide-ranging, high level discussion with Yanis Varoufakis about the structural issues facing the world economy. US-based cynics may be amused by the question that expresses skepticism about recent US growth figures.