Dollar ‘King,’ Here King

This week’s dollar strength has more to do with options expiration than any perceived reversal in the greenback’s ability to stay strong. The crowded dollar short trade is unwinding for year-end profit, which makes for a false profit on the dollar. The dollar/euro death dance is also being twisted around over the PIIGS: Portugal, Ireland, […]

Masters of Destruction

Blythe Masters may not be a household name just yet, But this plucky Brit may yet become the Marie Antoinette of the 21st century. Ms. Masters as a young banker in the City of London worked on the risk desk of JPMorgan Chase. She is said to be the mother of the credit default swap […]

Greenhouse Gasbags

The reaction of global warming evangelists to the leak of e-mails detailing climate scientists fraudulently altering temperature data to support their thesis speaks to the ultimate objective. The idea of climate change has so much more to do with global governance and so little to do with environmental change. If you look at the roster […]


AIG’s allocation of cash to fund existing exposure to vanilla insurance products it sells is woefully underfunded according to an analyst’s report. Because of the tidal wave of CDS exposure AIG has taken its eye off the basic products it offers. Secondly and most importantly, AIG still has huge exposure to the derivative market with […]