Out Of The Frying Pan Into The Frying Pan

“The skill of the sports player is not the result of superior knowledge of the future, but of an ability to employ and execute good strategies for making decisions in a complex and changing world. The same qualities are characteristic of the successful executive. Managers who know the future are more [...]


The Terminator

“Our Russian psychosis has two curious features. Firstly, that an 80 per cent Christian Orthodox society for some reason reacts to a Mayan calendar which no one has ever seen. And secondly, that the end of the world is perceived as an economic crisis that can be survived on the banal [...]


The Greatest Trick

“I believe in an America where millions of Americans believe in an America that’s the America millions of Americans believe in. That’s the America I love.”

-     US Presidential Candidate Mitt Romney.

 Never try to teach a pig to sing, advised Robert Heinlein. It wastes your time and it [...]


The Canary In The Gold Mine: Gold Investment Strategies

With the euro-area crisis and associated uncertainty escalating rapidly of late, safe-haven assets are outperforming, with the notable exception of gold. Why are high-quality government bonds rallying to new highs, while gold sinks to a six-month low? A key explanation is surprisingly simple if technical: Government bonds are Tier1 capital assets, [...]


Bill Gross Finally Realizes Global Monetary System At A Breaking Point

I have never been able to figure out Bill Gross of PIMCO. He pleaded for government stimulus and quantitative easing when the economy was crashing and that earned him a place on our Crony Capitalist list. 

When I read his op-ed piece today in the Financial Times and his monthly letter to clients, I wonder [...]


The Invisible Red Line

Professor Paul Krugman and Rep. Ron Paul (R-Texas) went head to head on BloombergTV this week. True to his neo-Keynesian form, Prof. Krugman insisted that the US government could and should add further debt to stimulate growth. Rep. Paul responded by asking how much debt would be too much, to which [...]


Why Bankruptcy Is The New Black

OK, OK, I’m not exactly one to write about fashion, but fashion is about trends, and investment analysis is frequently about identifying trends early, if possible even before they properly begin, to assume the vanguard position prior to a dramatic outperformance of a given asset, or investment style. And so, in [...]


What Are Economists For?

Most economists, it seems, believe strongly in their own superior intelligence and take themselves far too seriously. In his open letter of 22 July 2001 to Joseph Stiglitz, Kenneth Rogoff identified this problem. “One of my favourite stories from that era is a lunch with you and our former colleague, Carl [...]


Gary Shilling Forecasts Recession

This interview with economist Gary Shilling reflects closely our thinking here at the Daily Capitalist: we are heading for economic slowdown, stocks are overvalued, and the dollar and Treasurys (30-year) are headed higher (30-year below 3% yield). This interview is from Bloomberg Television’s Adam Johnson and Stephanie Ruhle, on the “Street Smart” program. Shilling is [...]


Problem Solving

“FTSE 100 could hit 7,000 if the Bank of England prints more money”

- Telegraph headline implicating Legal & General’s Ben Gill as the inflationist paper-bug.

Any Martian watching events down here would be scratching its head more than usual. The ONS [UK Office of National Statistics] reported that UK GDP [...]


Ray Dalio Interview By Charlie Rose

Charlie Rose does a good job at getting the essence of one of Wall Street’s most successful investors, Ray Dalio of Bridgewater Associates, the world’s largest hedge fund. Although I have criticized him for some conventional and wrong views about deleveraging, I admire him for his usual, very unconventional thinking.