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Havoc and Hope

Eric Kraus from Moscow: Havoc/Hope.

A glimpse into our future?

Equally also, our thrust has been founded on our unwavering belief that extraordinary circumstances must be confronted through extraordinary interventions…
As Monetary Authorities, we have been humbled and have taken heart in the realization that some leading Central Banks, including those in the USA and the UK, are now not just talking of, but also actually […]

On the razor’s edge

Dyed-in-the wool inflationists and equally convinced deflationists have been arguing for years about the consequences of the inevitable bust of the credit bubble – the former arguing that the only way out is the printing press, the latter pointing to the overwhelming deflationary impact of falling asset prices and falling aggregate demand.
One of the […]

What is the fair value of US mortgage assets?

One cornerstone assumption underlying the viability of the Paulson Plan is that current market prices for subprime and Alt-A products differ by a significant margin from their “hold-to-maturity” value. Reasons for the persistent differences between market prices and a “fair” value are thought to be illiquidity and asymmetric information. If this were indeed true, then […]

Connecting the dots

The correlation between gold and oil since the start of the commodity bull market around 2001 has been remarkable. However, from time to time, that correlation breaks down. There have been four breakdowns so far – first during a mini oil bubble which peaked on August 30, 2005, at $70/barrel, during the first gold bubble […]

The Widening Gyre

Eric Kraus from Moscow, on Western hypocrisy towards Russia: The Widening Gyre.

Try Not to Panic

Some rectifications concerning Russia, and a few thoughts on the world economy, by Eric Kraus from Moscow: Try Not to Panic.

Barbarians at the Gate

Dozens of studies have proven that gold is a bad investment. Is it indeed? The below figure compares the return on the purchase of one ounce of gold at $35 in 1970 and an investment of $35 in stocks (S&P500, with monthly reinvestment of dividends, assuming no fees whatsoever, source: Robert Shiller ).
Now […]

Crack of Doom

Another brilliant analysis by Eric Kraus from Moscow: Crack of Doom.

Road to Roota