It’s still good a good idea I think; banks are nationalized in one of the worst case scenarios, wiping out shareholders and bond holders, but honoring depositors and counter parties. This has precedent, like when the U.S. Government paid off Goldman Sachs for risks traded with $AIG.
A reader wondered why not options on the $EWA instead. It’s because implied volatility remained sticky following the 2008 crash, and the 2010 and 2011 corrections, unlike the implied vol implosion in equity options. ~ Bloomberg Live Insights
Spot-futures correlation decreases with both the number of public news arrivals and the volatility of news sentiment ~ Sentiment News
Exclusive: Venture Capital Performance numbers ~ FortuneMagazine ~ also this chart:
Comparing Machine Learning Algorithms ~ bigml
Quant model for forecasting short term returns ~ twitter
"In some ways, Bernanke is an open book." ~ Axel Merk. – agree 100%,highly recommend reading his papers – especially this one.
Fed recently mentioned as a possibility – ‘commitment to accommodating policy even as the recovery progressed’ ~ Merk $$
Ultra Easy Monetary Policy and the Law of Unintended Consequences ~ Zerohedge
More Evidence That Spending Cuts Are the Best Way to Shrink Our Debt – By Veronique de Rugy ~ National Review
At 5 year highs in bullish COT Treasury Positions ~ Bloomberg – likely anticipating Fed buying
"How to become a mobile app developer [infographic]" ~ GuyKawasaki ~ bubble?
‘Australia’s Terms of Trade to plunge on metals drop’ ~ Deutsche Bank in ~ Financial Times
‘Australia may need to monetize debt should foreign investors pull out’ ~ Variant Perceptions via FT Alphaville
Gillard has been pressing RBA’s Stevens to lower rates ~ Bloomberg ~ central bank independence is a myth.
"After credit booms, there are always Non Performing Loans" ~ Socgen on Chinese banks reporting 1% NPLs ~ FT Alphaville
The Yuan has started to depreciate against the dollar, as predicted ~ Search HS – now, which Chinese firms borrowed in dollars?
Construction at China’s most famous ghost city grind to a halt ~ Also Sprach
China Construction Bank Exec: Bad Loans Rising Rapidly in East China ~ WSJ
The state of China’s nuclear capabilities (pdf) ~ Union of Concerned Scientists
- Article implies China wants the ability to retaliate, but China has a limited arsenal and does not see other strategic usage
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