The Big Short 2.0
Like most Big Trades, the fundamental rules remain the same! Liquidity, timing & luck! As John Maynard Keynes allegedly said, “Markets can stay irrational longer than you can stay solvent.”…
ECB to Accept Junk Bonds as Collateral
The move is widely seen as the ECB taking a pre-emptive move before the rating agencies start to downgrade European sovereign debt. Investors are concerned that Standard & Poor’s scheduled…
All Set for Take-Off, But When?
The industry’s outlook grows darker by the day. The scale of the crisis makes a sharp V-shaped recovery unlikely. Realistically, it will be a U-shaped recovery with domestic travel coming…
Stephanie Kelton on Modern Monetary Theory
Lunch with the FT features s one of the leading advocates of Modern Monetary Theory (MMT), the idea that if a government is in charge of its own currency, no…
Negative Yield Curves & Recessions!!
According to Cam Harvey's model, the economy usually enters recession 12 months after first turning negative. With the initial inversion in March 2019, the model forecast a US recession starting…