City of London Frets About Life After 2020
The City’s vast financial services sector benefited hugely from the creation of the euro. Now, a large part of that business is at risk.
Read more...Category Archives: Derivatives
2020 “Globie”: The Carry Trade
A recent book focuse on the role of the carry trade in increasing financialization and instabilty.
Read more...“Savings Glut” Fables and International Trade Theory: An Autopsy
Debunking Bernanke’s pet excuse for the global financial crisis, the savings glut hypothesis, which of course exculpates the Fed.
Read more...More on Frank Partnoy’s Misguided Take on Collateralized Loan Obligations
No, collateralized loan obligations are not about to wipe out banks, and Frank Partnoy should have focused on real risks, like destruction of productive capacity.
Read more...Universa Debunks CalPERS’ Defense of $1 Billion Tail Hedge Miss; Insider Accounts Expose Additional Misrepresentations
CalPERS efforts to ‘splain away its $1 billion tail hedge fiasco backfire as one of the tail risk managers, Universa, shreds CalPERS’ claims.
Read more...Why the Oil and Gas Industry Will Never Be the Same
An overview of the dislocations in the oil market.
Read more...The Worst Is Yet To Come for Oil Prices
Collaping oil prices demonstrate the severity of the fall in real economy activity.
Read more...Taleb Questions CalPERS Ben Meng’s Competence and Honesty in Defending Missed $1 Billion Hedge Gain; Taleb Estimates CalPERS Net Loss on Meng’s “Alternative Mitigation” Over Two Years at $19 Billion
Nassim Nicholas Taleb calls out one of CalPERS CIO Ben Meng’s Big Lies, and unearths an even bigger one.
Read more...Coronavirus: Bracing for the Economic Shockwave
The coronavirus spread is setting up a nasty real economy-financial system contraction.
Read more...Foreign Exchange Swaps: Hidden Debt, Lurking Vulnerability
How hidden foreign exchange swaps contribute to financial fragility.
Read more...Wolf Richter: How Ratings Agencies Inflate Credit Ratings to Get Deals & Fees
Haven’t we already seen this movie? Race to the bottom in gaming credit ratings agencies for commercial real estate Collateralized Loan Obligation deals.
Read more...Why the UK Needs a Financial Transaction Tax
Claims that a financial transaction tax would be difficult to implement and raise little revenue are fake news.
Read more...Wall Street Has Been Gambling With Student Loan Debt For Decades
As the student debt crisis continues to mount, major financial institutions are making record profits from student loan asset backed securities.
Read more...Interest Rate Derivatives Trading Explodes to $6.5 Trillion/Day
Interest rate derivatives trading spikes over last 3 years; the UK currently dominates. Will this continue post-Brexit?
Read more...Deutsche Bank Throws in the Towel, Announces Restructuring into Bad Bank/Good Bank, Firing of 18,000
The beginning of an end for Deutsche Bank.
Read more...