Tag Archives: fragility

What’s the Real Meaning of the Stock Market Swoon?

There’s no shortage of explanations on the whys and wherefores of the US stock market’s recent swoon / swan-dive / plummet. Here’s a few of the many credible explanations: — the economy has reached peak earnings so there’s no fundamentals-driven upside left; … Continue reading

Posted in General | Tagged , , | Leave a comment

America 2018: Dicier by the Day

If we look beneath the cheery chatter of the financial media and the tiresomely repetitive Russian collusion narrative (that’s unraveling as the Ministry of Propaganda’s machinations are exposed), we find that America in 2018 is dicier by the day. The more you know … Continue reading

Posted in General | Tagged , | Leave a comment

How Systems Break: First They Slow Down

The reality that cannot be spoken is that all the financial systems we believe are permanent are actually on borrowed time. One way we can judge this decline of resilience is to look at how long it takes systems to … Continue reading

Posted in General | Tagged , , , | Leave a comment

Massive Central Bank Intrusion Means Ever Increasing System Fragility

In markets distorted by permanent manipulation the most powerful incentive is to borrow as much money as you can and leverage it as much as you can to maximize your gains in risk-on asset bubbles. A core dynamic is laying … Continue reading

Posted in General | Tagged , , , , , | 1 Comment

What’s America’s Fragility Score?

By this measure, the U.S. scores very poorly: 4 out of a possible 5 on the Fragility Index. There is a certain logic to the idea that stability is a good predictor for future stability: if a nation’s economy and … Continue reading

Posted in General | Tagged , , , , , | 1 Comment