Recent Posts

China Debt Implosion: The First Domino Has Fallen

By Derek On January 6, 2012

“A lot of fellows nowadays have a B.A., M.D., or Ph.D. Unfortunately, they don’t have a J.O.B.”  - Fats Domino

China is different, they say. China has a new economic growth model that is a shining light to the world. China’s economy has averaged almost 10% annual GDP growth for two decades, allowing them to finally acquire all the modern goods they desire; planes, trains and peanut butter. China is a rising superpower, quickly overtaking the west the army of China bulls continually tells us. Deng yi xia. Is China different? Actually, we are the same in many ways and aside from adopting western economic models “with Chinese characteristics,” China has followed Europe and the US in a much more disturbing way: I refer to their unrecognized love affair with debt. China loves debt. It can’t function without it. But the debt party is almost over and this ends badly for

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2012: Fools and Strategists

By Derek On January 3, 2012

“I’m sleeping less than I’d like.”
- Luis de Guindos, Minister of Economy and Competitiveness, Spain

German Sex Toys

Today is the first trading day of 2012 and I am back from a quick vacation with family to Germany for Christmas. Germany is a great place for a vacation, believe it or not. In an unstable world where social disintegration is at the door, “boring” is the new black. We had a great time in Flensburg, way up north in Schleswig-Holstein, and enjoyed the medieval city which coincidentally, has become the heart of the rising German sex toy industry. (Nothing to do with us).

Ancient Calendars

As they say, it is dangerous to make predictions, especially about the future, and I won’t make any here other than outline a few interesting trends we will be living with. 2012 in the Chinese calendar (beginning this year January 23rd) is the

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Merry Christmas & the Client List

By Derek On December 19, 2011

Man must be disciplined, for he is by nature raw and wild.”  - Immanuel Kant

This is probably the last post of the year. Christmas is approaching and I am taking a week and a half to goof off. Most of the clients are away this week already or will be by next week. I will be back early January refreshed, recharged and ready to rock. Now, let’s talk about discipline…

My Tool

The most important tool every day at work is not my computer, nor my telephone, nor even my Bloomberg terminal: it is my client list. A client list is more than a string of names that I am responsible for; it is my franchise and the substance of my day.

A sell side broker is responsible for certain client relationships the firm has. If the broker moves to another firm those clients might move with

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