On January 23rd, we put forth a framework to guide us through the macroeconomic challenges of 2012. Below is the chart we proposed. As you can see, we are now at a crossroad, with regards to the future of the status quo held since 2008. To refresh what we wrote back then, please go [...]
On January 23rd, we put forth a framework to guide us through the macroeconomic challenges of 2012. Below is the chart we proposed. As you can see, we are now at a crossroad, with regards to the future of the status quo held since 2008.
To refresh what we wrote back then, please go to: www.sibileau.com/martin/2012/01/23
As usual, there is nothing more practical than a good theory, in light of which, we dare to add that there is really nothing else to say, except that the news of a major global bank’s losses in the credit derivatives market will only increase the pain.
We think that this time, the world is ready for the decoupling shown in the chart and, because of the proximity of the US presidential election, the Fed will find itself severely limited to act strengthening cross currency swaps.
Martin Sibileau
