This last week, the geopolitical spotlight has found fewer catastrophes to shine on, so it has focused instead on the new ECB-drafted (and soon to be enforced) banking laws that will take effect over all of the Eurozone member state based banks starting January 1st. You may not think this is a big deal yet, but in fact it represents a potential regional and global banking crisis in the making. Among other powers which they grant, the new banking rules will permit the ECB and its new Single Resolution Board to freeze bank accounts and banks of failing institutions. Rather than… Read More

It has been a while since you saw much in the news about Italy's continuously troubled banking sector. Yet just this past week, the world's largest hedge fund Bridgewater Associates, started and run by legendary investor Ray Dalio, revealed that it has launched an eye-watering $770 million short assault on the critical financial stocks of Italy. This is its largest bearish position in all of Europe, per data put together by Bloomberg. The hedge fund has taken so-called bets on the share prices declining in not one or two but five Italian banks and an Italian-based insurance company. Their reasoning… Read More

Once upon a time not so very long ago, France represented the dominant global power on earth. Yet along with their enviable overseas empire, trade, and monuments at home went massive runaway spending. In fact on the very eve of the French revolution back in 1788, France's national debt had grown so huge that the government spent a mind-boggling 50 percent of all tax revenues on only its interest to their creditors. Even though they were quickly sinking, the government of France could not manage to slash spending. Their beloved social welfare projects alongside the expensive military simply could not be… Read More

It seems like the continuous rumblings of discontent in Europe have become increasingly and all too common lately. Aside from huge unhappiness with the European Union and Eurozone in both Italy and Greece, you now have new serious challenges to the neo-liberal order of Europe in three member state leaders of the Czech Republic, Poland, and Hungary. Any of the three and in particular all of them together represent a powerful alliance easily capable of fracturing Europe at a time when it is still reeling from Brexit and the slow motion train wreck separation that it represents for the common market… Read More

Last week the data emerged from the Chicago Board of Options Exchange showing that some wealthy trader with an enormous amount of money has placed a multi-million dollar sized wager on stock market volatility surging in the upcoming months through the end of the year. This trade has already become the biggest CBOE volatility index trade for the year, per Head of Derivatives Strategy Pravit Chintawongvanich of Macro Risk Advisors. At the same time, a respected Morgan Stanley analyst is out calling for a full bear market correction of at least 20 percent across stock markets by the second half of… Read More