Category Archives: Uncategorized

The Heir to the Fed’s Errors

Jim Grant with the Daniela Cambone at KITCO last week. Particular gems are that he defines the present environment as the “Ph.D. Standard of monetary management”, which is a regime where tenured economics faculty have been given the reigns to set their know-it-all theories loose in the wild via the world’s monetary policy.   According to …

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Is China at the bottom? Probably Not.

From: A Cheaper Yuan Won’t Help China   “…What’s really driving downward pressure on the yuan are capital outflows as Chinese investors look to get their money out of the country into safer havens such as the U.S.; by some estimates, $1 trillion has left China since the middle of 2014. One can hardly blame …

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Unraveling

2015 steadily confirmed that the global credit bubble was coming unhinged.  Yet mainstream market optimism remained deeply entrenched at precarious heights. As we often noted during the build-up to credit cycle crisis that culminated with the collapse in 2008, there is a Wile E. Coyote phenomenon at work that preys on the psychology of most …

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Flash Crash 2015 – HFTs at it again…

From ZeroHedge on High Frequency Traders: Anyone who actually trades (and is not part of the Modern Market initiative) knows that this precisely what happens every time there is a spike in market vol: HFTs simply walk away leading to the dreaded “HFT STOP” moment, creating a feedback loop of even less liquidity, and even …

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China – Let the Dominoes Fall

It’s early 2007 all over again.   Slightly different tune, but it sure rhymes a lot! From the FT article: Eleven shadow banks have written an open letter to the top Communist party official in northern China’s Hebei province asking for a bailout that would enable the bankrupt credit guarantee company to continue to backstop loans …

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Website on Hiatus

Vigilant Investor remains on hiatus while its author is on other engagements. When time permits, the archives from the emerging credit bubble era of 2005-2008, along with published .pdf writings from 2002-2005, will be restored.