Resources
PCE and CPI
By David Kotok
“The Committee judges that inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures[...]
Read moreAsset Safety in the post-MF Global World
by David R. Kotok, Chairman and Chief Investment Officer, Cumberland Advisors December 26, 2011 We wish our clients, referring consultants, professional colleagues, friends, and all of our readers a happy holiday season and a healthy new year. We also encourage them to ask very hard questions as they work to keep their money and investments [...]
Read morePIMCO Veteran Paul McCulley: A New Model for Understanding Geopolitical Crises
by Jason Voss, CFA
As a former portfolio manager, I know that practitioners often pay too much attention to micro-level issues of individual securities and not enough attention to the broader macro-level context [...]
Read moreThe Nonbank-Bank Nexus and the Shadow Banking System
by Zoltan Pozsar and Manmohan Singh Abstract The present way of thinking about financial intermediation does not fully incorporate the rise of asset managers as a major source of funding for banks through the shadow banking system. Asset managers are dominant sources of demand for non-M2 types of money and serve as source collateral ‘mines’ [...]
Read moreWhy Banking Works One Big Confidence Trick
by Zoltan Pozsar Banking is one large, clever, and finely tuned, confidence trick. On the one hand are bank notes which are “legal tender for all debts, public and private”, trade at par and are referred to as money. They are liabilities of the sovereign. On the other are demand deposits – from savings to [...]
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