2012

The Target2 problem is really a manifestation of an accelerating bank run. I have said many times, this is my major concern, the bank runs and the resulting shrinking credit and likely deadweight loss that accompanies them.

The euro zone continues to dominate the headlines, with both Spain and Greece on the verge of collapse. Ireland, however, has voted in a referendum today to decide whether it accepts the fiscal treaty that Germany has been pushing for in…

The following press release was issued just today by Moody's the ratings agency in conjunction with a recent ratings action on Danish banks.

We are now in another existential crisis for the euro zone with yields on sovereign debt from Spain and Italy spiking well over 6%. We have been here before, most recently in November. Then, it was Italy in Spain's position as the lead…

This week's newsletter is going to focus on how risk assets are setup given the continuing global growth slowdown and likely policy responses to it. The overall thesis is that shares and high yield bonds in the US are short-term oversold…

On Twitter the latest buzz is about the US ten-year government bond hitting a record low of 1.6713%. Some are amazed that the world of 'financial repression' where long-term yields are lower than consumer price inflation can go on and on…

John Hussman's latest weekly letter contained a very nice chart on the trend for GDP growth in the largest developed economies. The data show a high degree of correlation over the past ten years.

Since I have been off for a few days I have a lot of links today, probably too many for one big linkfest but here they are. I will leave out more than usual to strip it down to the most salient ones. There's a lot on Spain and India in…

Unfortunately I don't have the time to do a proper daily commentary. But here are the links.

Here's the video from last night's capital Account with Lauren Lyster and Demetri Kofinas. Everyone keeps acting like this crisis is about to boil over and take the world economy with it. It certainly could. More likely though, we will…