Dionysius the Elder, a ruler in ancient Greece, ran up massive debts to pay for his multiple military campaigns. His solution? Change every drachma into two drachmas. Pulling money from nowhere to cover massive debts has seemed to be a monetary policy throughout Greek's history. First, let us observe the 1800s. Greek defaulted in 1843 (thirteen years after becoming a modern state), 1860, and 1893. Starting in 1800, based on economic studies, Greece has delayed payments in fifty percent of the years to the present. Moving into the 1900's, history depicts the global economy becoming industrially
26 Jul 2015
It dawned on me yesterday while writing my post that we do a lot of speculation on this site...but I am not sure how many of us really speculate. Needless to say if you are working on a desk at a prop shop or at a trading arm of a bulge bracket, you have money in play almost every single day. But how many of you guys are actually putting your own nut on the line? It's tougher now than ever before and I'm curious to see who the risk takers are. I have to be honest and say that I haven't had significant dollars in play since Ford and GE were the safest bet since Jordan in the playoffs.
05 Feb 2011
Read this and start to learn how to discern between reality instead of the reality created by media and financial elite. I don't agree with everything he says but it is pretty spot on. Productivity, The Miracle of Compound Interest, and Poverty By Michael Hudson This is a re-working of my second talk at the Rimini MMT conference, as heard on Guns and Butter.
29 May 2012
I understand this may be a silly question to those of you in the field, so please bear with me. From what I understand there are two main camps of macro PMs. One type comes from a trading background, understands how all the products work, and is very good at putting on asymmetric bets using option structures. The other type hails from a more academic background, probably has a PhD, went to work as an economist at a think tank or central bank, and then somehow ended up money management, where they put on trades based on a longer term economic view rather than playing one data print to the next.
09 Nov 2014
I love Brazil. I hate tree huggers . But being that it is the season of caring and sharing, I am willing to make an exception if for one day, only. In light of today's news that U.S. car makers and engine manufacturers are challenging the E.P.A's recent decision to increase ethanol content of gasoline sold in the U.S. to 15%, I am feeling a bit nostalgic. Here Comes Another Flashback...
20 Dec 2010
I was wondering if anyone could explain how ER analyst approach writing reports that include looking at the economy of countries THAN going down to a sector and THAN companies. I am interested in improving my Macro to Micro knowledge and I would like to get a start ASAP. Hopefully I can get some info from analysts that do this for a living and can possibly break this down to a systematic approach or at least an outline approach that I can fill in as I learn more.
21 Aug 2011
The current economic era has brought about questions that have not been seriously entertained in the Western world since the days of Paganism, when Christianity was the new kid in town. America is at the forefront of this seismic shift and each day we are being asked difficult questions. The following Niall Ferguson power point puts the most pertinent of those in a comical flip book format. I assure you guys, however, there is nothing funny about these ideas. Though we ignore many of them, they will not simply go away. With the Western world slowly becoming the global minority we are going to
20 Apr 2011
Currently reading "The $10 Trillion Prize: Captivating the Newly Affluent in China and India" by partners at BCG. Reminded me about an investment proposal I wrote (along with 2 others) last year. The portfolio described in the proposal has returned ~20% (positions entered in January 2013). Take a look. Thoughts about India/China? Thoughts about the investment strategy? Discuss. Link: http://www.scribd.com/doc/138162669/Oil-2-0-The-Rise-of-India-s-Middle-…
11 Sep 2014
Not sure how to imbed, but this is an interesting video. While many people on here (including myself) are not particularly welcome to wealth redistribution, this video makes a good argument. Regards http://www.ted.com/talks/lang/en/richard_wilkinso…
17 May 2012
Back in September the idea that the Eurozone's economy could potentially undergo a recovery (see post) was met with some skepticism. And yet here we are. The EuroStoxx50 index is up 14% for the year while the Dow is up 2.5%. We now see plenty of indicators showing strengthening economy in the euro area. To begin with, the area's credit conditions continue to improve as loan growth is about to turn positive for the first time since the middle of 2012. Source: ECB, Investing.com
11 Mar 2015
The strength of the dollar has increased steadily in 2015, and will continue to do so in the growth orientated economic climate of the United States. What has contributed to this? Throughout the world economies have been in a slump. Europe is currently in currently undergoing a stimulus program to help regenerate the economy. Even with the stimulus, however, many European's are pessimistic that inflation will increase. Additionally, the financial woes of Greece have not helped the EU's financial situation. Moreover, Japan is undergoing a massive 29 billion dollar stimulus program. Essentially
11 Aug 2015