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Tag Archives: Central Banks

Was Coinbase’s Bitcoin Cash Rollout A Designed Hit?

Authored by Tom Luongo, There’s an excellent article over on Breitbart that looks at the details of Coinbase’s surprise roll-out of Bitcoin Cash (BCH) as a trading vehicle on their in-house exchange GDAX. It details the whole sordid mess and I would recommend anyone interested in the topic to read it for what it implies. To me, however, being the cynic that I am if there is a path to harming Bitcoin and the cryptocurrency market available to the money center banks, then they will...

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Bitcoin – Millennials Fake Gold

I’ve been asked about Bitcoin a lot lately. I’ haven’t written anything about it because I find myself in an uncomfortable place in agreeing with the mainstream media: It’s a bubble. Bitcoin started out as what I’d call “millennial gold” – the young (digital) generation looked at it as their gold substitute. Bitcoin is really two things: a blockchain technology and a (perceived) currency. The blockchain element of Bitcoin may have enormous future applications: It may be used for electronic...

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If Bitcoin Is A Bubble…

Authored by Erik Norland via CMEGroup.com, Our earlier articles on bitcoin discuss the crypto asset as a currency and a commodity. Both papers focused on the consequences of bitcoin’s defining feature: the asymptotic supply limit of 21 million coins. This gives it an unusual juxtaposition of demand uncertainty and supply certainty (as well as inelasticity). As a currency, it gives rise to a tension between its use as a store of value and as medium of exchange. Like commodities, it...

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2018: Irrational Complacency – “What Is Your Exit Strategy?”

Authored by Alberto Gallo via Algebris Investments, “Your loving give me such a thrillBut your love don’t pay my billsNow give me moneyThat’s what I want”Money – Barrett Strong, 1959 Ten long years after the crisis, volatility and fear seem to have disappeared from financial markets. A synchronous global expansion coupled with persistently loose monetary policy has produced a goldilocks environment for all assets. Will it work for another year? We have...

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The 10 “Grey Swans” Events For 2018

One of the traditional push backs against attempts to predict "black swan" events is that they are by default unpredictable, rendering the entire exercise moot. However, for the second year in a row, Nomura's Bilal Hafeez has found a loophole, or rather loop-animal: the grey swan. As Hafeez writes, while he would like to be able to predict black swans, by definition that is impossible. "However, its close cousin the grey swan can be foreseen. These are the unlikely but impactful events that,...

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The Latest Crazy Idea From Economic Experts: Abolish Cash (But Don’t Tell The People)

Via GEFIRA, In a recent paper - The Macroeconomics of De-Cashing, Alexei Kireyev of the International Monetary Fund advises abolishing cash without having the citizens aware of the process. First, large banknotes are to be withdrawn from circulation, next limits on cash transactions are to be imposed, then computerization of the world’s financial system and control of international cash transactions are to be enforced and, finally, private companies are to be encouraged to avoid cash...

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Bank Of America: “This Is The First Sign That A Bubble Has Arrived”

Lately, fund flow data has all the credibility of a NYT presidential poll two days before the Trump defeats Hillary.  On one hand, you have Lipper reporting that investors pulled $16.2bn from U.S.-based equity funds in the past week, the largest withdrawals since December 2016. The same Lipper also reported that taxable-bond mutual funds and ETFs recorded $1.2bn in outflows, with U.S.-based high-yield junk bond funds posting outflows of $922 million. On the other hand, you have EPFR...

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One Trader Reflects On A Bad Trade – The Never-Ending Grain Pain (And Whose Fault It Was)

Authored by Kevin Muir via The Macro Tourist blog, I have had some bad trades in my day. But lately, one call has been especially atrocious. For the past couple of years, I have taken stabs on the long side of the grain market. At different times, I have held various positions for different lengths of time, but make no mistake - grains have done nothing but cost me money. Sure, I might have a decent sounding argument, The Last Remaining Cheap Asset, but the market is indisputably telling me...

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A Question For Every Investor

Authored by 720Global's Michael Lebowitz via RealInvestmentAdvice.com, Recently we received the following question from a subscriber: “If a correction in the stock or bond markets comes, the Central Banks will buy stocks with printed money, like the Japanese Central Bank, etc. Will there ever be a shakeout of the garbage and junk in the system? I am losing all confidence.” –Ron H. Questions like Ron’s that suggest the decay of capitalism and free markets should...

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