John Hussman visualizes what seems to me a plausible scenario for a euro deal and its consequences. Note that, in his scenario, the grand solution emerging this week doesn’t hold up (“all bets for stability are off”) in the event of a subsequent recession. And a subsequent scenario is his central scenario (mine too): The […]

Anthony Doyle (Bond Vigilantes) has published a neat graph showing that money supply in the USA is accelerating sharply: Looking at US M2 money supply, an increase of 10.1% over the year to September 2011 should be a cause for concern. A higher rate of money supply growth has occurred on only five occasions since […]

Fitch today reported seeing “little risk that a potential Eurozone funding crisis would spill over into Latin America’s banking system.” The ratings agency noted that Mexico has a 45% European subsidiary bank market share. This doesn’t worry Fitch, however: Subsidiary banks in Latin America are largely funded through local deposits, with little or no direct […]