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Yeah, the US Marshall Plan and the US reconstruction of Japan and the US rebuilding of South Korea were just terrible - really set Western Europe, Japan, and South Korea back. Stalin and Mao were so much better. Google: “The Great Leap Forward” 1958-1962. “The Cultural Revolution” 1966-1976.

The Chinese Communist Party demands that other economies use the Yuan as an international reserve currency, but they are unwilling to allow the Yuan to float on international markets like the US Dollar or the Euro or the Swiss Franc or the Japanese Yen or the Pound Sterling or the Australian Dollar.

Yeah, but the Chinese Communist Party can't have it both ways - which gets back to my original argument on why Yuan-denominated debt might be so unattractive to foreign institutional investors. If you're holding paper that pays a 1.5% Coupon from the People's Bank of China, and the People's...

I am hardly an expert on stock trading, far from it. I get both sides of the argument. FINRA, NASD, and NYSE are SRO’s and they can set their own equity and risk rules. And for that matter Brokers can set more conservative margin and capital requirements. My sense is that if the PDT rule was...

1. China had a GDP of $13.61 Trillion USD in 2018. Hardly makes them "prey" - not by any rational definition. 2. An OECD study in 2017, covering 40 countries, found that outside China there were close to 2,500 State Owned Enterprises, but China alone has over 50,000. How is that "free trade"...

Don’t feed the pigeons.

Except that what these politicians are asking for (192% of revenue) would make the real ‘Mob’ blush. It’s probably rule number one in the protection extortion rackets to allow your victims enough breathing room to survive. What idiots. Who TF thinks that they can tax a server farm at such a...

Well that was predictable. ICE reports 2019 net revenues of $5.2B for all of its trading exchanges. Democrat Politico wants the State of New Jersey to tax ICE $10B annually. And that’s just for the courtesy of having servers located there, mind you. What could go wrong?

In your last few posts you refer to strong countries “preying” on weak countries when discussing currency controls or lack of controls. Which one is China?

And yet there is a crackpot lawyer trolling the site who wants to sue in order to eliminate the minimum account equity rule for PDT margin accounts.

Great point. I don’t think that a trader had to choose between “trending” and “mean reversion” provided he’s using confirmation. IMO, unless you have some sort of arbitrage you are pounding away at - it’s a distracting conversation but that’s my own 2 cents. YMMV.

Well, let’s just observe what the market says about European Bank valuations - at the time of the Barron’s article the Dow Jones EuroStoxx Bank Index was down 50% since the ECB went negative.

Same here, much longer timeframe. If my indicator package flips, I’m out right there and I cancel my resting stop-loss limit order. Scales can be helpful but trailing stops are a disaster for swing trading from my experience.

When one leg of the spread is in negative territory, it offsets the value of the other (positive) leg. So, for long term loans, it squeezes the lender.

“In Europe, about 60% of the banking industry’s revenue comes from net interest income—the difference between banks’ borrowing and lending rates—so low or negative rates automatically dent the lenders’ profitability. Bankers didn’t complain at the beginning of what the central bank calls its...

Please don’t feed the pigeons.

Commercial banks and retail banks tend to suffer under protracted negative rates: https://www.google.com/amp/s/www.barrons.com/amp/articles/5-years-into-negative-rates-europes-banks-feel-the-pain-51570831182 The Bundesbank would never let Commerzbank or Deutsche Bank fail. And the Bundesbank...

Two most recent examples are August 2015 (3%, PBC unilateral) and August 2019 (PBC, 7 Yuan Peg). If you know how to use Google you can find more severe examples earlier - some as high as 50%.

No institutional investor outside of China would risk the People’s Bank of China unilateral devaluation on such a low yielding instrument. They have a long history of it - as recent as 2019, and you’re just begging to get your throat cut. If you buy something that yields 2 percent and the PBC...

I have a few clients that print money with metals spreads but they are in the LME and they are NOT in Gold vs Silver. I haven’t seen any of my clients trade GC/Si in years. I know it’s been several years for me.