On January 15, the Swiss National Bank suddenly and without warning removed the franc’s peg to the euro. Months later, there is still much confusion as to why they acted, including some of the usual doctrinaire assessments that take no account of wholesale “dollar” reality. In other words, the SNB was explicit on January 15 though nobody apparently listened. The [...]
In case it isn't clear, and it really isn't, the lack of bank capacity matters in ways both indirect and direct. Indirectly, banking and the "dollar" are supposed to support the global economy. Instead, the eurodollar system came to dominate and now we live in its absence as economic trends developed from that domination (hello China), serial asset bubbles as [...]
Last week, Goldman Sachs reported a nearly 30% drop in FICC revenue, far and away the largest decline among the major money dealers. That compared to -10% for JP Morgan’s FICC, and -9.3% at BofAML. There are a couple reasons for the disparity but the largest, at least what you can make out from the bank’s balance sheet, traces back [...]
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