Vitaliy N. Katsenelson, CFA submits: Party rulers in China are trapped in a position that chess players deeply fear — zugzwang — where any move made puts you at a disadvantage. In China, the potential cost of both action and inaction is economic collapse.
Both the entire month of March, and its last full week, particularly for biotech investors and especially hedge funds, is a time that many would rather forget and continue pretending that the saying "as January goes, so goes the year" is no longer applicable. Luckily, for all those bulls who have forgotten that in a normal market there is both return and risk, at least in pre-New Normal times, there may be some good news.
While inflation seems to be on everyone’s mind these days, misconceptions abound. Indeed, few concepts in economics are as misunderstood as inflation. This month I take a look at some common questions about inflation, and a few that I wish more people were asking.
Back in April, we saw that merely asking the local economy minister what Argentina's rate of inflation is, was enough to prematurely terminate any interview and result in a mocking, viral twitter meme.
Rumors that a deal will be reached "soon" have gone on for weeks. Indeed announcements of an expected agreement today have already hit new snags.
For the sake of argument, let's assume a deal does go through and crunch the latest numbers to see what the situation looks like from the point of view of Greece before and after the deal.
Please consider Greece Needs EU145 Billion in Second Aid Package
"The Malaysia Airlines disaster seems to have put Putin in a zugzwang, the German chess term beloved by Russian political scientists that signifies a situation in which any move will weaken a player's position," Alec Luhn of Foreign Policy writes.
Josh Rosner of Graham Fisher testifies before a subcommittee of the House Financial Services committee today on why Dodd Frank has not ended too big to fail, but also has managed to entrench the megafirms’ advantaged position.
Rosner provided Congressional testimony on this same topic in 2011, and deemed Dodd Frank’s plans for winding down systemically important firms to be unworkable. Rosner has good company here; the BIS and the international bank lobbying group the IIF reached the same conclusion.
The Federal Reserve has embarked on several rounds of Quantitative Easing hoping that increasing the bank reserves will help to stimulate the economy and lower unemployment. The critics of the program see this as "money printing" and fear it will backfire creating inflation or even hyperinflation within the economy. No matter the outcome of the Fed's actions, inflation is a risk that must be addressed in all retirement portfolios.
By Investment Directions: Smoky the Bear’s fire indicator is pointing to “Danger!” To me, the stock market’s conditions are like a tinder-dry forest. While we cannot know if a spark will ignite a fire, we can beware and prepare for the possibility.