malinvestment

“If spending an amount equal to half of the world’s second largest GDP to buy up foreign currencies is not currency manipulation, then what is?” -Martin Wolf, Financial Times The perils of Chicago Many moons ago, long before I…

By Michael Pettis Most of this week’s newsletter was about the release last week of China’s fourth quarter GDP growth numbers by the National Bureau of Statistics (NBS). You can find the full NBS report on their website, but here is the…

I caught this video along with the Keynes video I just profiled. Look at this as a rebuttal to some of the themes Lord Skidelsky went through in that previous video. Lawrence White explains the genesis of the Austrian Theory of Boom and…

By Edward Harrison Randall Wray wrote a paper on "The Fall of the New Monetary Consensus" which we posted at Credit Writedowns last week. Randy took on the theoretical underpinnings that guided policy makers through the most…

Marc, you have been very quiet. What are you worrying about? Faber: Have you got an hour? You are all wrong. You say you would do this or that if you were policymakers, but nobody says "I wouldn't do a thing. I would let the market…

This is what the biggest mall in the world looks like on a typical Saturday, very reminiscent of this Hugh Hendry video of China's empty skyscrapers and this video of China's empty city.

by Annaly Capital Management An interesting recent piece by Reuven Glick and Kevin J. Lansing of the San Francisco Fed looks to explain changes in the savings rate over time. On an aggregate level, the authors point out that the savings…

by Edward Harrison Back this past September, Hugh Hendry spoke with Bloomberg's Kevin Crowley about investment strategies, financial regulation and the role of hedge funds. Bloomberg has just released the video and I recommend watching.…

This comes from Andy Lees of UBS: A few weeks ago I sent out a note highlighting that the Nasdaq was approaching its post 1974 trend line from which the average movement has been 24.06% in the subsequent couple of months. At the time I…

I wrote a post about six months ago called "Misunderstanding Modern Monetary Theory" on deficits and resource allocation that I was re-reading. I wanted to add some off-the-cuff comments that might be relevant to today's…