Before entering my thoughts on the significance of the year’s lowest close on the U.S. 2/10 curve, let me state that a Bloomberg news article by Alexandra Harris and TJ Marta is a must read in order to put perspective to the erratic nature of the markets recent moves. (It’s titled, “Traders Pull ‘Singed Fingertips’ From Markets As Risks Escalate.”) Every hedge fund of qualitative significance is struggling in an effort to make sense of all the potential “prairie fires” that exist around the world. Several months ago I blogged about the many risky bundles of dry tinder that could be ignited by a single spark. The Harris/Marta article provides an up-to-the-moment recap. (Full disclosure: Harris is one of my progeny, while Marta will have to blame others for his shortcomings.)
Posts Tagged ‘EDF’
Notes From Underground: The Emptiness of the Chattering Classes, Opining On Everything With Vacuous Thought
March 14, 2016The main political news of the weekend was the falling electoral support of German Chancellor Angela Merkel in the three regional elections. The refugee issue continued to be the theme of voter discontent, according to the script presented by the nattering nabobs of nonsense. I have written that the financial repression foisted upon the German saving class was going to be a problem for Chancellor Merkel as insurance and pension funds were being punished in an effort to bail out the peripheral banks and ultimately the heavily indebted governments of the non-German core countries. Unlike the U.S., which has some political input on the role of the Federal Reserve, the German electorate is subjugated to a central bank over which it has no authority.