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Home / Tag Archives: Central Banks (page 20)

Tag Archives: Central Banks

10 Years Ago Today Money Markets Seized Up, The ECB Bailed Out BNP Paribas, And The Crisis Started

On this day 10 years ago, money markets started to seize up, requiring heavily-coordinated central bank action that launched an extraordinary period of central bank activity that is still in full swing today. As DB's Jim Reid reminds us, the announcement by BNP Paribas that they were closing three funds linked to US mortgages became the catalyst for the collapse of trust in money markets over the coming days and weeks. Just over a month later we had the bank run on Northern Rock. As an...

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“It Won’t Be Pretty” – One Trader Wonders “What Happens When ‘Analysis Be Damned’ Fails?”

The disconnect between hope and reality has never been so wide. But, as former fund manager Richard Breslow notes - for now, forget lucky versus smart. What investors want to be is right rather than wrong. Of course, there is nothing too new in that statement; however, Breslow thinks an inflection point looms in the great game of smoke and mirrors and doing what 'has worked' versus doing what's right. Via Bloomberg, We’ve hit rock bottom where traders believe with all their...

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Forget FOMO – 90% Of Stocks Have Never Been More Expensive

Authored by Mike Shedlock via MishTalk.com, John Hussman’s report this week, Estimating Market Losses at a Speculative Extreme, has an interesting chart on Median price-to revenue ratios over time. Let’s dive in. I added the dashed blue line for ease in comparison to the dot-com bubble peak. Here are some snips from Hussman. “One of the things that you may have noticed is that our downside targets for the market don’t simply slide up in parallel with the market. Most...

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“The World’s Most Feared Investor” Lashes Out At Safe Spaces

Several days after Paul Singer released his much anticipated letter to investors (key excerpts here), the founder of Elliott Management was profiled on Bloomberg as the "most feared activist investor in the world—by hedge fund rivals, companies and even countries", and for good reason. Singer’s Elliott Management, which manages $34 billion of assets, has not only rarely been out of the headlines the past 18 months - in the process targeting the world’s biggest mining company, taking on Warren...

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China’s Minsky Moment Is Imminent

Authored by Kevin Smith, Tavi Costa, and Nils Jensen via Crescat Capital, Crescat Capital's Q2 letter to investors shouold be retitled "everything you wanted to know about the looming bursting of the world's biggest credit bubble... but were afraid to ask..." Don't say we didn't warn you... History has proven that credit bubbles always burst. China by far is the biggest credit bubble in the world today. We layout the proof herein. There are many indicators signaling...

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A Tale Of Two Countries (Or How The Fed Enabled Corporate Kingpins To Scalp Billions)

Authored by David Stockman via The Daily Reckoning, Here’s a comparison that is surely vertigo inducing. On the one hand, the financial system is implicitly held to be so incredibly stable and healthy that volatility on the S&P 500 has been driven to 50-year lows. Indeed, that lovely condition is apparently expected to persist indefinitely as signaled by implied volatility. During the last 6,000 trading days (since the early 1990s), the VIX Index closed below 10 on 26 occasions or...

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Free State Bitcoin Shoppe: Interview With Co-Owner Derrick J. Freeman

Via The Daily Bell Can you give me the rundown on your shop? Derrick J: Free State Bitcoin Shoppe is a place for people to level up on their cryptocurrency knowledge and trade their digital cash for unique tech and freedom-themed souvenirs. Our mission is to help people use better money. To a backdrop of dance-punk and electronic music, we offer one-on-one assistance to the bit-curious to help spread the crypto-economy in New Hampshire. It's packed with seditious propaganda like...

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Is Another Oil Head-Fake Coming?

Authored by Charles Hugh Smith via OfTwoMinds blog, The dramatic declines in the costs of oil production will be boosting supply at the very moment that demand is falling. Over the past decade I've addressed what I call Head-Fakes in the cost of oil/fossil fuel: even though we know the cost of extracting and processing oil will rise over time as the easy-to-get oil is depleted, oil occasionally plummets to such low prices that we're fooled into thinking it will remain cheap for a...

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The Market is Lurching Closer and Closer to a Single Day Flash Crash

Whoever is rigging the market is getting increasingly desperate. The daily VIX slams are getting more and more ridiculous. It’s getting to the point that the VIX is getting slammed 5%-6% every single day at 9:50AM  just to pin the S&P 500 (they’re not even trying to get a gain anymore). Here’s the VIX. Here’s the S&P 500’s last nine closes. The index is LITERALLY not being allowed to move. It’s now gyrating a point or two per day. This level...

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“We Emailed Billionaire Howard Marks About Bitcoin; Here’s His Response…”

Authored by Simon Black via SovereignMan.com, Today is one of those days when I feel blessed to have such wonderful and interesting people in my life. A few months ago I introduced you to Ben Yu, a Silicon Valley-based entrepreneur who’s easily one of the most unique people I know. I first met Ben when he came to our summer entrepreneurship camp a few years ago. I knew instantly that he was bright… and different. He had already won the prestigious Peter Thiel fellowship, dropped...

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