The economic calm which has succeeded the turbulent conclusion to 2018 was abruptly shattered on the 16th of September. On that day, rates in the repo markets spiked by 248 basis points to more than double the overnight lending rate of the...
One thing has been bothering us for six years. How can so many economists and economic commentators dismiss the ever-increasing market meddling of central banks so lightly? The first time we warned about this possible threat to financial markets w...
We have been monitoring China closely since March 2017. We were one of the first to show that China had driven the global business cycle since 2009 and that the rem...
For some reason, the dire situation of European banks is not causing further alarm. This is strange, as it is the exact place where the new global banking crisis is likely to start. What makes it even stranger is that recession is approaching the ...
There is renewed hope in the markets after central banks, most-recently the ECB and China, have added easing measures. The working narrative is that these will, once again, renew global growth and allow governments, corporations and consumers to go e...
A recession is approaching. Almost anywhere in the world one looks, economic indicators are in decline. As we have argued since March 2017, the coming recession wil...
Almost all economists and the vast majority of the general population erroneously believe that central banks are, basically, indestructible. And most fail to appreciate that central banks are different from normal commercial banks in just two respect...
Global stock markets have been wobbly after the Federal Reserve failed to impress and the trade war heated-up. Combined with the weakening global economic outlook, there are not many reasons for stocks to rally. Many are also wondering about the d...
This post has been co-written with Dr. Peter Nyberg. Japanification is a term that has re-emerged recently. It r...
As expected, increased ’dovishness’ by the Fed has gotten markets rallying. Both the S&P 500 and DJIA have touched new highs. From the perspective of late last year, such massive rallies seemed unlikely indeed. While some kind of a Fed pivot was ...
