Author Archives: Yves Smith

Office of Financial Research Warns of Corporate Debt Defaults, Particularly Related to Energy Loans, as Stability Risk

Nothing like the downgrades and the prospect of default to focus the mind….

Links 1/28/16

Krugman’s Cowardly, Dishonest Attack on David Dayen Over Krugman’s Misrepresentation of Sanders’ Financial Reforms

Paul Krugman’s recent posts have been most peculiar. Several have looked uncomfortably like special pleading for political figures he likes, notably Hillary Clinton.

Are Economists in Denial About What’s Driving the Inequality Trainwreck?

Today’s richest Americans may soon blow past the tycoons of the Roaring Twenties.

Private Equity Fun Time

This is both a private equity joke and a test to see if you’ve become buzzword compatible enough to get it.

Links 1/27/16

Wobbly Italian Banks May Get “Bad Bank” Resolution Vehicle

Italian banks’ extend and pretend game may be coming to an end.

The Implications of Foreign Minister Lavrov’s Snub of Victoria Nuland

The reign of neocons, as symbolized by State Department Victoria Nuland’s “Fuck the EU” remark, may be past its sell-by date.

Andrew Bacevich: Six National Security Questions Hillary, Donald, Ted, Marco, etc., Don’t Want to Answer and Won’t Even Be Asked

In the realm of national security, election 2016 promises to be not just a missed opportunity but a complete bust.

Investors Piling into Illiquid Assets to Avoid Discipline of Market Prices

Investors are piling into risky, illiquid assets at the worst possible time and for the worst reason: to fake performance.

Links 1/26/16

Former BIS Chief Economist Warns of Massive Debt Defaults, Need for Debt Jubilee; Fingers Europe as First in Line

Even though the former chief economist of the BIS calls for a debt jubilee, it’s only part of the medicine needed to get the economy out of the ditch.

Bill Black: Wall Street Declares War Against Bernie Sanders

The attacks on Sanders from Wall Street are getting ever more shrill….about time the felt some heat.