Page 7 - Jared Dillian News Today

The second derivative is everywhere in finance. It is convexity in bonds or gamma in options. When someone blows up in the financial world, it is usually...

Absolute power corrupts absolutely. Nobody should have absolute power, yet the Fed has been given absolute power with checks & balances on paper only. "Independence" is code for being unaccountable for the negative consequences. There is no mechanism to hold the Fed accountable. Never seen people so excited about something down 50% … using btc as a proxy to the speculative mania pic.twitter.com/FtXB6QvBYv most shorted index nearing next resistance fib pic.twitter.com/1jTi803eCG Bad News: The ...

Funny how things change. If you go back to 2015–2017, the biggest fad in finance was to open an account at Vanguard. com, throw a few thousand bucks in it, and stick it in index funds. This is how Vanguard accumulated many trillions of assets very rapidly. Vanguard’s assets under management are still growing, but not as quickly. These days, people are shoveling money into Robinhood accounts and buying  Tesla (TSLA), SPACs, and crypto. From a personal finance standpoint, this is undesirabl...

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

Even after you pay off the mortgage, you still don’t own the property. Not fully, anyway. From a philosophical standpoint, you’re renting the house from the government. That payment comes due in the form of property taxes. Property taxes are the worst kind of taxes. However… I’m Happy to Pay Another Kind of Tax It isn’t income taxes. When you tax people’s work and efforts, they want to work less. It’s just like taxing their property. You discourage people from wanting to own any....

Grew up (mostly) in Norwich, Connecticut, which is a sad town at the intersection of three rivers.One of the reasons it is sad is because...

When the Money Gusher Ends We can all agree it’s a good thing the pandemic’s crushing blow to the economy didn’t close all the businesses and put everybody in bread lines. But there’s no such thing as a free recovery, say people who don’t want us to have any fun. For example, the Fed’s money printer going brrr all the time has kept countless companies from going bankrupt, writes Lisa Abramowicz. The downside is this has also kept alive countless companies that might be better off n...

By Jared Dillian I’ve been either investing or writing about investing for 22 years, and I’ve seen a lot of weird stuff, but nothing as weird as Dogecoin, the lighthearted dog-themed cryptocurrency that was created as a joke. It’s now valued at more than $50 billion, exceeding Ford Motor Co. and many other companies with extensive histories. It’s not the first worthless financial instrument that I’ve seen soar to great heights—it happened to dot-com stocks at the start of my career�...

The airlines were running on one month’s worth of cash when COVID-19 hit. They ran out of cash because they spent their money on buybacks, trying to get their stock prices up. This is terrible behavior. They jeopardized their companies. And the government rewarded them with billions of dollars in relief funds. What we should have done is let them go bankrupt instead. Bankruptcy Shouldn’t Be a Bad Word The bankruptcy process is nothing to be afraid of. The airlines would have still continued...

by Tyler Durden Wednesday, Apr 07, 2021 - 03:00 PM Jared Dillian, publisher of The Daily Dirtnap, returns to the Daily Briefing to update Real Vision’s Jack Farley on how America’s red-hot economy is precipitating wage inflation alongside monetary and fiscal stimulus, worth trillions of dollars, which shows no sign of slowing. Dillian argues that this booming reflationary environment will be hostile to bonds but could lead to a “melt-up” in U.S. equity indexes as value stocks surge and ...