Independent thinking for complex markets and current events
The world is facing a profound challenge as maturing bonds pile up across many countries, and the ability to roll them over becomes increasingly uncertain. This is a crisis waiting to unfold, with countries forced into positions where they cannot meet their debt obligations without slashing bond values—known as a “haircut.” A haircut occurs when …
A reporter asks Chicago Mayor Brandon Johnson why he spent $30,000 on hair, makeup with his campaign funds. He says it was to help black businesses. "And I encourage everyone in this room… get your hair and makeup done by black people" pic.twitter.com/TwIUcQprQv — End Wokeness (@EndWokeness) June 13, 2024
As we navigate the currents of financial markets, the landscape reveals a precarious situation. Reflecting on the March 2020 crisis, which extended beyond the realm of COVID-19 to a massive blowout of the basis trade, the present scenario raises alarms. Collateral haircuts hover at zero or near-zero levels, with banks shouldering increasing risks. Astonishingly, the …