My partners and I thought this was very helpful and insightful commentary on what is causing the action we are seeing in the markets.

“So what is going on???? The way we see it, the margin clerks are in charge…this is liquidation, not orderly unwinds…It may have started in the oil space, but it is long term capital all over again….Hedge funds had similar trades on in oil, European equities, European peripherals, US equities …all levered…and until you reduce to where the margin clerks say you have to be it will continue….It always looks worse at the bottom, but it is too tough to call it in real time…but I sense we are close…It is usually in the middle of October. But with the lack of street liquidity and reduced repo lines it is more difficult to figure it out….Stay loose, today looks like another volatile day”

 

 

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The Ruble is Collapsing – courtesy of BusinessInsider

by Marilou Long on October 8, 2014 in currencies

The recent economic data out of Europe shows that the sanctions against Russia are impacting the EU as well as Russia.  The chart from this linked BusinessInsider article shows how much the sanctions are hitting Russia’s currency. The Russian ruble has collapsed to a record low against a basket of  dollars and euros despite intervention by the [...]

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Words of Wisdom from Thomas Jefferson

by Laura Ehrenberg-Chesler on October 8, 2014 in Tribute

My post today is one of my favorite quotes from Thomas Jefferson: “I am a great believer in luck, and I find the harder I work, the more I have of it.” Words of wisdom from one of our Founding Fathers.

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The Inevitable Student Loan Mess

by Laura Ehrenberg-Chesler on October 2, 2014 in Debt

There has been some mention both in our blog and the financial press about the looming crisis in student loans in the U.S.  This opinion piece from the “Wall Street Journal” certainly puts the matter in a stark, and ominous light.  This is a matter that deserves attention from the general, voting public. http://online.wsj.com/articles/joel-best-and-eric-best-student-loan-debta-federal-toxic-asset-1412204612?mod=trending_now_5

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Unrest in Hong Kong

by Marilou Long on September 30, 2014 in Foreign Markets

Tens of thousands of protestors have been filling the streets of Hong Kong the last several days.  The protests started out very peacefully, and then the Chinese government began to use tear gas and force on the protestors.  This editorial from the New York Times today is a good explanation of what’s at stake for Hong Kong.  From the linked article: If [...]

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A Good Explanation of the Jewish High Holy Days

by Laura Ehrenberg-Chesler on September 24, 2014 in Education

My partner Marilou suggested I post this brief summary of Rosh Hashana and Yom Kippur.  Happy New Year to all of our clients who are observing the Jewish New Year. “As the sun sets tonight, Jews around the world begin the most intense period of the Jewish year. The Ten Days of Repentance, sometimes called [...]

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iPhone 6 Review Round Up

by Marilou Long on September 17, 2014 in lifestyle

I have linked several reviews for the new iPhone 6 that I found useful.  There is also an article at the end about upgrading your existing phone to iOS 8. From the Wall Street Journal: After using both the iPhone 6 and iPhone 6 Plus for a week, I can report that Apple has successfully [...]

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The U.S. Consumer vs. The Thrifty Scots

by Marilou Long on September 9, 2014 in currencies

The U.S. markets remain near record levels due to decent domestic economic data and geopolitical uncertainty abroad.  Consumer borrowing in July rose $26 billion, the most since November 2001. On the other side of the pond, the pound sterling and the euro have been falling due to both weaker economic activity and the upcoming vote on Scottish [...]

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When Political Correctness Get in the Way

by Laura Ehrenberg-Chesler on September 3, 2014 in politics

From The National Review’s “Morning Jolt” today regarding the hacked pictures of Kate Upton: Here’s the thing, and the moral betters in the media at large are really going to hate this; People are going to look at the leaked pictures. There’s no grandiose explanation of a larger culture of sexism or war on women [...]

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The “Unconscious Decoupling” of the U.S. and Europe

by Laura Ehrenberg-Chesler on August 28, 2014 in Debt

On Tuesday morning this week, Ed Yardeni had an amusing twist on the phrase used by Gwyneth Paltrow to describe her divorce as “conscious uncoupling”.  Mr. Yardeni said the United States and Europe were economically “unconsciously decoupling”.  The reason for this was interesting, particularly for those of us concerned about excessive government regulation, and the [...]

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