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Tag Archives: Lehman Brothers

CME Unveils “Weirdest Chart Ever”

Authored by Erik Norland via CME Group, We freely admit: Figure 1 is probably the strangest chart that you will ever see, at least in finance.  You may be wondering: did they throw blue spaghetti noodle on paper for inspiration and then write an economics article about it?  Or, have they spent too much time with disciples of psychologist Timothy Leary, a proponent of experimenting with psychedelic drugs? Figure 1: Weirdest Chart Ever We assure you that neither is the case. ...

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Signs Of The Top? Chinese Demand For 10x Levered Structured Products Surges In US… Again

In the run up to the 'great recession' of 2008/2009, it was unsuspecting European and Asian buyers that supplied the marginal capital required to turn America's plain vanilla, fed-induced housing bubble into a turbo-charged, global financial time bomb by indiscriminately scooping up highly-levered structured mortgage products with absolutely no idea what was behind those products. Now, it seems that China's lust for levered returns in U.S. structured products has returned and is focused this...

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This Michigan Bank Just Brought Back The Zero-Down Mortgage; They’ll Even Cover Your Closing Costs

A small savings bank in Michigan, Flagstar Bank, has come up with a genius, innovative new mortgage product that they believe is going to be great for their investors and low-income housing buyers: the "zero-down mortgage."  What's better, Flagstar is even offering to pay the closing costs of their low-income future mortgage debtors.  Here's more from HousingWire: Under the program, Flagstar will gift the required 3% down payment to the borrower, plus up to $3,500 to be used...

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Einhorn: “None Of The Problems From The Financial Crisis Have Been Solved”

A month ago, a downbeat David Einhorn exclaimed "will this market cycle never turn?" Despite solid Q3 performance, Einhorn admitted that "the market remains very challenging for value investing strategies, as growth stocks have continued to outperform value stocks. The persistence of this dynamic leads to questions regarding whether value investing is a viable strategy. The knee-jerk instinct is to respond that when a proven strategy is so exceedingly out of favor that its...

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“It’s An Utter Mess” – Paul Craig Roberts Warns The Biggest Danger To Stocks Is The Dollar

Authored by Greg Hunter via USAWatchdog.com, Former Assistant Treasury Secretary in the Reagan Administration, Dr. Paul Craig Roberts, says the record highs you see in the stock markets are based on “phony profits” that come from global central banks “propping up” the financial system. Dr. Roberts contends, “It seems to me that the only thing that would cause the Federal Reserve to stop the liquidity would be if the U.S. dollar fell under attack.   If for...

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Taleb Explains How He Made Millions On Black Monday As Others Crashed

Former trader and author of best-selling book “The Black Swan” sat down for an interview with Bloomberg News to mark the upcoming thirtieth anniversary of the stock-market crash that occurred on Oct. 19, 1987 – otherwise known as Black Monday. Taleb famously supercharged his career – and earned a considerable sum of money (though turns out it was less than Taleb felt he deserved) – thanks to his trading profits from that day, which he said were in the “tens...

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Could Market Complexity Trigger The Next Crash?

Complex systems are all around us. By one definition, a complex system is any system that features a large number of interacting components (agents, processes, etc.) whose aggregate activity is nonlinear (not derivable from the summations of the activity of individual components) and typically exhibits hierarchical self-organization under selective pressures. In today’s infographic from Meraglim we use accumulating snow and an impending avalanche as an example of a complex...

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Using Gold To Hedge Korea Nuclear War Risk? This Is How To Do It, According To Goldman

In a note on the role of gold as a "geopolitical hedge of last resort", Goldman chief commodities strategist, Jeff Currie, writes that while it is tempting to blame the rally in gold prices on recent events in North Korea - which have certainly helped create a bid in gold - they only explain a fraction, or ~$15/oz of the more than $100/oz rally since mid-July. Instead, Goldman finds that the events in Washington over the past two months play a far larger role in the recent gold rally coupled...

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Bank Regulations: An Existential Threat?

Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke. Why was international financial officialdom so eager in late 2008 and indeed through 2009, 2010 and later, to raising banks’ capital-asset ratios? To answer this question, there is more to the story than meets the eye.  The starting point for the global bank capital obsession is to be found in Britain and its infamous 2007 Northern Rock affair. It was this British fiasco, rather than the...

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Did the Fed Already Ring the Bell at the Top?

Very few investors caught on to it, but a few weeks ago the Fed made its single largest announcement in eight years. First let me provide some context. For eight years now, the Fed has propped up the stock market. In terms of formal monetary policy the Fed has: ·      Kept interest rates at ZERO for seven years making money virtually free and forcing investors into stocks and junk bonds in search of yield. ·      Engaged in over...

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