The rush to safe haven assets today was frightening to say the least.As I write this VIX went up by more than 50% while Yen is up more than 5% .10 year Treasuries have recovered from 3.29% yield to 3.41% yield beginning at 3.59% and the US markets have recovered from down 8% to down […]
Markets are dropping like a rock. Went down more than 4% in less than a minute.Seemed like that the whole financial system was unravelling. The European problem that has been festering over the last 2 weeks suddenly seemed to hit the market in full force and weight.Euro is dropping like its a sub-Saharan currency while […]
Recent newsflow from China suggest that the country’s real estate market is poised for a sharp slowdown and the heavily controlled financial sector is sitting on huge piles of NPAs which are as yet undeclared.While I don’t think a crash will happen in China , I feel more certain that the stellar growth in China […]
The growth in income disparity around the world is striking.The internationalization of capital and trade has led to increasing amounts of income for the top percentiles of the world population while the bottom percentiles share of income continues to decline.This has not only been happening in developing countries like Russia,India ,Egypt but also in some […]
For the last few days the Shanghai and Southern European markets of Spain,Greece and Portugal have been falling despite higher US stock indices.This is a bit anomalous since most of the equity markets are highly correlated due to the globalization of financial capital..Gold has also been continuously rising despite fall in prices of other commodities […]
Greece agreed on a plan with EU-IMF which requires sharp spending cuts and tax increases on Sunday to get their hands of more than 100 billion Euros of support. But Greece is no Iceland or Latvia where the people will live with massively painful cuts on their standard of living. Strikes and protests are increasing […]