Sudden Debt

It is quite obvious that we are in the initial phases of a major credit crunch. However, this is not a "regular" credit contract...

I started this blog eight months ago when it became glaringly obvious that the global economy was becoming hooked on the high-potency drug o...

The 2Q2007 GDP numbers just came out (+3.4%), just as expected. Analysts also rushed to hail the PCE price index rise of "only" +...

Sometimes just one or two sentences are enough. Consider this paragraph, from a Bloomberg story . The ``golden era'' for leveraged ...

In addition to the ready availability of money (or loans, which is the same thing), liquidity also has another meaning: the ability to readi...

(Special Intra-Day Post) In case you have forgotten your Greek mythology, Cerberus was the three-headed hound, keeper of the gates of Hades....

A reader asked if there is proof about expectations of default rates reverting to the mean. Such expectations are a direct function of defa...

Sometimes I hit upon a chart so powerful that it literally makes me gasp. This is the case with the following one, taken from the Bank of I...

Are you comfortable with probability and risk mathematics? I don't mean a passing acquaintance with the principles of throwing dice and ...

Banking has always been considered a license to steal, assuming you could get a banking license to begin with. Because of the multiplier ef...