MF Global Shines A Light On Monetarism’s Incapacity To Enhance The Real Economy: an awful lot of money has been leveraged around so called central bank/government puts. While MF global was clearly caught out using repo financing, you have to wonder how many have been caught out on the same type of trade. Additionally, you have to question the actual benefits of quantitative easing where monetary action looks to have been focussed on high risk marginal trades. Yet another reason why the financial system appears to be working against the 99%.
Will Spiking Vol Drag Global Growth Down?: when a car reaches too high a speed or when a plane gets caught in a manoeuvre it was not build for, it has reached the limits of its physical design and breaks apart. I have consistently, for a number of years, pointed out the fact that the global economy has been far from away from equilibrium to the point that the structural imbalances risk destroying it. It could well be that what we are currently experiencing is the falling apart of the financial system.