By Tyler Durden, Authored by Willem Buiter via Project Syndicate, Across the advanced economies, central banks have rightly prioritized maintaining financial stability and supporting the real economy over fighting inflation with interest-rate hikes. But with financial fragility rife and public and private leverage at all-time highs, their next big test is coming. Since early 2020, […]

By Tyler Durden, In his latest note, SocGen’s Albert Edwards made an ominous – if obvious – comparison: “as energy prices surge with a backdrop of central bank tightening it’s starting to feel a bit like July 2008” referring to that moment of “unparalleled central bank madness as the ECB raised rates just as oil prices […]

By Tyler Durden, As the dominoes continue to fall in the Greensill Capital debacle, increased scrutiny on the overall trade finance business is starting to spark investor anxiety. While not directly linked to Greensill’s collapse, Mauritius-based Barak Fund Management has announced that is preparing to restructure its $1 billion money-pool of highly illiquid assets. Bloomberg reports that […]

By Tyler Durden, Authored by Willem Buiter via Project Syndicate, Across the advanced economies, central banks have rightly prioritized maintaining financial stability and supporting the real economy over fighting inflation with interest-rate hikes. But with financial fragility rife and public and private leverage at all-time highs, their next big test is coming. Since early 2020, […]

By Tyler Durden, Over the weekend, Morgan Stanley’s chief equity strategist Michael Wilson spooked some of the most vocal market propagandists when he pointed out the patently obvious, that tapering is in fact tightening, but also made a troubling observation for the market bulls: as Wilson put it, “the most powerful offset to a material correction in […]

By Tyler Durden, This morning’s most remarkable market observation comes from DB’s chief credit strategist Jim Ried, whose chart of the day shows that the UK may be starting at galloping, runaway inflation of up to 7% as soon as April, the direct result of the insanity taking place in Europe’s energy markets. Picking up […]

By Tyler Durden, In a time when institutions are increasingly shifting away from fiat currency and looking toward cryptos, it is worth recalling that at least when it comes to central banks, there is no digital gold. There is just gold. To be sure, in a time of unprecedented economic and social turmoil, central bankers’ […]

By Brian Quarmby, “[Crypto] is a trend that has barely started — money is the easiest application and the Bitcoin use case started there,” said Bank of America. The Bank of America Corporation (BoA) has published a research report offering a bullish outlook for the long-term prospects of cryptocurrency. The report, published on Monday by BoA […]

By Tyler Durden, By Ven Ram, Bloomberg Markets Live Commentator and Analyst A sundial near Venice is engraved with the words, “Horas non numero nisi serenas.” That line — attributed to the philosopher William Hazlett — roughly means, “I don’t count the time that isn’t tranquil.” Modern-day central bankers have taken that adage to heart when […]