Category Archives: Derivatives

The Inevitable Financial Crisis

We’re again in the Wile E Coyote phase of a financial crisis, but this time, the real economy problems are far worse than in 2008.

“Lehman Event” Looms For Europe As Energy Companies Face $1.5 Trillion in Margin Calls

Why energy price spikes are threatening the financial system. And any derivatives bailout will take prescedence over businesses and housholds.

Yanis Varoufakis: Inflation as a Political Power Play Gone Wrong

Looking at inflation through a class warfare lens.

More and More Crypto Crashing and Burning as DeFi (Decentralized Finance) Misbehaves

The great crypto unwind is underway, bringing to light even more bad practices than you likely knew about.

Can the Fed Kill This Inflation Without Killing Too Many Other Things First?

Why having central banks as the inflation shock troops is not such a hot idea.

How the Options Tail Has Come to Wag the Market Dog: A Simple English Language Explanation of How Structural Changes in the Stock Markets Contribute to Whipsaw Movements in Prices

Why the use of options may be the risk bomb that blows a big hole in our financial system.

What Blew Our Financial Bubble So Big?

Why it’s more fun and profitable to be in the bubble economy than the real one.

Russia Sanctions Blowback Only Beginning: Globalization in the Crosshairs, Russian Retaliation Coming?

More on how sanctions against Russia are boomeranging.

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.

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.

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.

2020 “Globie”: The Carry Trade

A recent book focuse on the role of the carry trade in increasing financialization and instabilty.

“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.

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.

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.