Monthly Archives: June 2016

Conserving the Capital

(Negative Rates) Yielding to the warning signs, bond rates are negative or nearly negative, with a yield curve going flat. Accounting for the difference, what is the course of action? If the warning signs are inevitable, having the symmetry of … Continue reading

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Random Distribution

When the astrophysicist looks out into the universe and sees different patterns of existence, why is it all different. Why all the diversity. (Space is all the same, isn’t it?) Galaxy A looks different from galaxy B because of random … Continue reading

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Random-Attribution Error

Buying back equity has slowed the momentum of economic expansion. Analysts tend to say flat to negative growth is due to a slow capital investment pattern but, for the most part, do not attribute the pattern to the buy back. … Continue reading

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Big-Bank Stocks

(Below Book Value) Big-bank stocks rebounded about 2% today because they are perceived to be selling below book value. No no no! These banks are BUSTED!!!! by their own derivative devices. Donald Trump fits right in with this big-bank crowd, … Continue reading

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Indirect Applications

(Buying it Back) The best way to deflate the economy is to buy it back, indirectly. Something that appears to randomly occur has a “natural” legitimacy. It is neither good or bad, it “just happens.” When deflation occurs, private-equity interest … Continue reading

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The Unknow Risk

Not exactly hidden risk (which is what derivatives are for), the unkown risk is the unintended appearance of risk that is the “zero-hedge effect.” It’s really dangerous stuff because it tends to go into panic mode, which is why TBTF … Continue reading

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Cameron Assesses the Risk

British Prime Minister, David Cameron said today that the UK has “ten times more capital in reserve than it had before the financial crisis.” Notice the measurable, moral comparative that assesses the determination of the risk. It is a Transactional … Continue reading

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