We have been assured for two years this is a crisis of liquidity. It is not and never has been. But here is how those who claim it is come to their conclusion. The model of growth I tried, possibly rather badly, to lay out in the post below “Cash, Debt and the Magic of […]

We, the people of GB now need to be very careful. The advice our govenment is having pressed upon them, and which they seems very eager to implement is as disasterously wrong as the advice the same financial experts, gave two years ago to our previous governemtn. Both times the advice was given as what

In the world of finance there are roughly three things you can have. Cash, Assets or Debt. Love doesn’t appear anywhere – sorry. They run on a spectrum marked in increments of risk and return. I want to tell you this because it relates to posts I want to write later. Cash is the most

The Swiss National Bank has for the last month or so been buying up Euros as fast as it could in an effort to stop its own currency appreciating too far. It’s interventions in the FX (Foreign Exchange) markets have been spectacular. Their buying doubled to around €230 Billion in the last month or so.

I am often rather scathing about economists, economics and finance in general. So I thought I should come clean and explain. Economics, to my mind, is much like theology and economists are alarmingly like medieval theologians. Economics and Theology are both systems of thought whose adherents have an unshakable faith that their theology embodies unalterable truths about

All the Far East markets took a plunge today. Japan lost a whopping 3.5%. It’s largest loss this year. Some of the losses are a reverberation rolling around form last Friday’s close on the Dow. Which has since also pulled Europe’s markets down. But last week’s worries about European defaults and debt, while still very

Before I start, please let me say that our idiots in Europe are just as frustrating as yours in America. This isn’t name calling its a general lament for us all. The US exhortations to Europe to recapitalize its banks and to consumer more are laughable. Yet that was the message of US Treasury Secretary,

Well, all the parts are finally in place for the big housing bubble burst, Australia has been waiting for. All the while trying to reassure itself and the world, that it was never going to happen of course. Just like it was never going to happen in the US. But now, like a roller coaster

I want to suggest that the recovery is over. How’s that for unwise? Nevertheless I think it is. Today it ended. Here is a possible scenario if I am right. I think the recovery ended for two reasons. The first I wrote about in the last post – the consensus among those directing our current

Here is a second bit of why I’m not with the recovery story. I think the consensus among the policy -makers and central bankers is fracturing. I think something similar is happening between the various market players. Who are roughly: stock market investors, Bond market investors and the big-banks who are speculating on the volatility