Central Banks Are Hiding the True Price of Risk
byIf you invest your money, you will have to deal with numerous risks. For instance, if you buy a bond, you run the risk…
Economics
Assessing the long-term structural risk for China
byAfter falling to 6.4% in Q1 2009 the yearly growth rate of China’s real GDP climbed to 12.2% by Q1 2010. Afterwards the yearly…
Lord Liverpool and the Return to Gold
byMartin Hutchinson and Kevin Dowd* * Hutchinson (karlmagnus.aol.com) is the author of the Bear’s Lear column, http://www.tbwns.com/category/the-bears-lair/. Dowd (kevin.dowd@durham.ac.uk) is professor of finance and…
The Bank of England’s incredible stress tests
byThe Bank of England’s 2016 stress tests are literally incredible. Of the seven big financial institutions covered in the exercise, only one (RBS) failed…
Why reduction in unemployment not the key for economic growth
byThe US unemployment rate stood at 4.3% in July against 4.4% in the month before. The number of unemployed stood at 6.981 million –…
Follow the money
bySince 2009, equities and other financial assets have climbed a wall of worry. Initially, it was recovery from the threat of a complete financial…
Saving and money – what is the relationship?
byConventional wisdom says that savings is the amount of money left after monetary income was used for consumer outlays, implying that saving is synonymous…
Another Reason Not to Believe the Bank of England’s Stress Tests
byThe Bank of England repeatedly reassures us that its stress tests demonstrate the resilience of the UK banking system. Well, let’s put the…
Boom
by“Facts do not cease to exist because they are ignored.” Aldous Huxley. There’s a telling quotation in Howard Marks’ latest memo to…
The Fed Remains on Course – to Trouble
byThe Federal Reserve (Fed) is widely expected to continue to tighten its monetary policy this year. According to a latest Reuters Poll, the Fed…