Friday, November 14, 2014

Idiocratic Magic: Higher Debt Equals Lower Risk

Global debt has never been higher in human history
40% higher than 2008

The Greed Feedback Loop
Gamblers use borrowed money to buy financial assets, drive up the prices, and then claim that higher prices indicate reduced risk...!?

Financial Stress Self-Delusion Index
The Subprime Era is circled in Blue. No, they never learn.



Priced for Perfection Year-end Bonus
This will work out fine as long as no one sells. Ever.
S&P 500 with options implied volatility