Brexit aftermath
Widespread regret and moaning
Think again, England
Widespread regret and moaning
Think again, England
Showing posts with label Great Britain. Show all posts
Showing posts with label Great Britain. Show all posts
Tuesday, June 28, 2016
Wednesday, February 03, 2016
Financial Sarcasm Roundup for 02/03/16
Groundhog Day came and went without any animals feeling Jungian existential angst. Climate change has more impact than a rodent's shadow on winter's length.
The ECB lowers expectations for more monetary stimulus. It could mean anything, or nothing. The ECB now mimics the Fed as it discovers it has the ability to move stock markets and resolve bad banks' balance sheets. Central banks don't make policy errors anymore. They send "layer cake" messages in a bifurcated economy. Retail investors will hear something about selling bonds that may have peaked in value. European bond fund managers will hear something about not expecting support for their asset valuations. Crying then begins in earnest in bond fund boardrooms.
The UK must wonder if the BOE plans for negative interest rates. "I say, Jeeves, is that a minus sign in your savings account? Why yes, it is indeed, old bean. Good God, man, such poppycock used to be confined to less dignified countries like our former colonies. Oh, fiddlesticks. This calls for a shot of brandy." BTW folks, anyone who wants to pull another George Soros move and attack the British pound should watch how far the BOE tries to push this NIRP speculation.
China will keep cutting banks' reserve ratios. It's just like getting a haircut every month until you're forced to go bald, and then the barber scalps you. Forget about responsible bank stewardship. That just flew out the window in a desperate search for capital to prop up China's failing stock and property markets. I guess Beijing couldn't entice enough Western banks to launch onshore yuan trading branches. There are plenty of suckers in both the West and China who will try to catch falling knives behind a bamboo curtain.
Your average groundhog does not follow the financial markets as closely as I do. That's another bragging point for Alfidi Capital.
The ECB lowers expectations for more monetary stimulus. It could mean anything, or nothing. The ECB now mimics the Fed as it discovers it has the ability to move stock markets and resolve bad banks' balance sheets. Central banks don't make policy errors anymore. They send "layer cake" messages in a bifurcated economy. Retail investors will hear something about selling bonds that may have peaked in value. European bond fund managers will hear something about not expecting support for their asset valuations. Crying then begins in earnest in bond fund boardrooms.
The UK must wonder if the BOE plans for negative interest rates. "I say, Jeeves, is that a minus sign in your savings account? Why yes, it is indeed, old bean. Good God, man, such poppycock used to be confined to less dignified countries like our former colonies. Oh, fiddlesticks. This calls for a shot of brandy." BTW folks, anyone who wants to pull another George Soros move and attack the British pound should watch how far the BOE tries to push this NIRP speculation.
China will keep cutting banks' reserve ratios. It's just like getting a haircut every month until you're forced to go bald, and then the barber scalps you. Forget about responsible bank stewardship. That just flew out the window in a desperate search for capital to prop up China's failing stock and property markets. I guess Beijing couldn't entice enough Western banks to launch onshore yuan trading branches. There are plenty of suckers in both the West and China who will try to catch falling knives behind a bamboo curtain.
Your average groundhog does not follow the financial markets as closely as I do. That's another bragging point for Alfidi Capital.
Thursday, October 10, 2013
Monday, February 06, 2012
Europe Divests Hedgies While England Doubles Down
Some European pension plans are finally wising up to the statistical reality that hedge funds are an expensive way to add no value. These plans are reducing their stakes in hedge funds or divesting altogether. Good for them. It's too bad that the Church of England has yet to figure that out. It has increased its commitment to hedge funds. The Church's commitment makes no sense in light of its governing body's commitment to better corporate governance.
Hedge funds are among the most opaque, poorly managed investment vehicles available. So-called evidence that these things proved their worth in the 2008 financial crisis ignores what would have happened if a few more prime brokers had gone under. Prime brokerages provide credit to hedge funds. Those funds' leveraged bets on obscure, illiquid instruments would have collapsed without the bailouts that backstopped the largest investment banks.
England is further from insolvency than than the Continent. Its troubles are no more than a year or two behind Europe's so there is still a small window during which British institutions can be foolish with money.
Nota bene: Alfidi Capital is not a hedge fund. I have never invested in hedge funds and never will.
Hedge funds are among the most opaque, poorly managed investment vehicles available. So-called evidence that these things proved their worth in the 2008 financial crisis ignores what would have happened if a few more prime brokers had gone under. Prime brokerages provide credit to hedge funds. Those funds' leveraged bets on obscure, illiquid instruments would have collapsed without the bailouts that backstopped the largest investment banks.
England is further from insolvency than than the Continent. Its troubles are no more than a year or two behind Europe's so there is still a small window during which British institutions can be foolish with money.
Nota bene: Alfidi Capital is not a hedge fund. I have never invested in hedge funds and never will.
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