Category Archives: Credit markets

We Have to Consign the Era of Financial Engineering to History

Financial legerdemain is still very much with us, despite the Big One in 2008 and continuing distortions confirming its high cost.

Rising Temperatures, Melting Ratings

Taking a stab at how global warming will affect bond ratings in the intermediate and long term.

The Bullshit Economy Part 2: Payday Loans 2.0, aka Early Paycheck Apps

Payday loans suck. Giving them a new name does not make them suck less.

Stock Market Leverage Spikes in Historic Manner: Another WTF Chart of a Zoo that Has Gone Nuts

In an investment environment where nothing matters anymore – until old fasioned worries like leverage suddenly do.

The Full Case Against Ultra Low and Negative Interest Rates

Why unprecedentedly low and negative nterest rates will probably not stimulate demand and may even threaten financial stability.

Michael Hudson and Paul Craig Roberts: It Is Time To Remove The Debt Barrier To Economic Growth

Why it’s time for a widespread debt writedown.

SoftBank-Funded Fintech Upstart Greensill Crashes, Carnage Ensues

Supply chain finance disuptor Greensill is undone by its own financial wizardry, putting at risk thousands of jobs in the UK, Australia and the EU. The timing could not be worse for already buckling supply chains.

The Bullshit Economy: Homebuying “Help”

Introducing “The Bullshit Economy” from Jared Hoist, on products and companies that exist solely to exploit policy failures, in a bad way.

Goldman Is Evil But McKinsey Is Worse

Why the McKinsey veneer is looking tattier and tattier with every passing day, and why that’s not likely to change.

Michael Hudson – Changes in Super Imperialism

Michael Hudson recaps his classic Super Imperalism and extends it to the 21st century struggle for dominance among the US, China, and Russia.

Negative Interest Rates Are Coming, but There Is No Chance That They Will Work

Negative interest rates: a bad idea that some central banks still can’t resist.

Coronavirus and Banking: Evaluating Policy Options for Avoiding a Financial Crisis

A scorecard for various approaches to combatting the looming European banking crisis.

A Hard Look at Rent and Rent Seeking with Michael Hudson & Pepe Escobar

An in-depth discussion of financial capitalism versus earlier models and the Chinese and Russian approach, with a focus on the role of rent.

Polarization, Then a Crash: Michael Hudson on the Rentier Economy

Michael Hudson discusses the chokehold of pro-finance, pro-rentier capitalism reaching into the present COVID-19 crisis.

China Retrenches on Belt and Road Initiative as Defaults Rise

More on “Whither China?”