What are the unintended consequences of having too much of a good thing? Will too much free money trigger such a spike in inflation and borrowing costs that the parabolic rise in stocks triggers another crash? As we have often discussed, the biggest lesson learned from the Great Financial Crisis…
Rates are all the rage these days. The Fed, backed by their unlimited digital printing press, promised us rock bottom interest rates into 2022. The $14 Trillion US Treasury Bond market however has become the Reddit bane of the Feds existence by selling Bonds, forcing yields higher much earlier than…
In the depths of the 1930’s Great Depression, British economist John Maynard Keynes came into vogue espousing the heavy hand of Government to counter consumption contractions with massive deficit spending. While WWII had more to do with our eventual exit from the deflationary 1930’s catastrophe than Keynes’ deficit spending, the…
In 1609 a majority shareholder and competitor of the famous Dutch East India Company (controlled 50% of world trade in 1700’s), created a primitive Hedge Fund to sink its shares for profit. Isaac Le Maire invented the idea of selling shares short, borrowing shares using collateral, in the hope of…
What does it mean when meme stocks rise and fall like fireworks? Bankrupt stocks rising 400% in a day. Collapsing companies garner Billions from financial justice warriors bidding up their failing enterprise. Clandestine traders rally their troops on social media to punish professional money managers as a pretense for running…
© 2021 Exec Spec. All Rights Reserved.
