From the Opalesque team: Opalesque has learned that Eidsis Capital is preparing to launch a Hybrid distressed fund which will be named Eidsesis Special. Get information, directions, products, services, phone numbers, and reviews on Eidesis Capital in New York, NY. Discover more Security Brokers, Dealers, and. SEC profile for Registered Investment Advisor (RIA) EIDESIS CAPITAL LLC including address, website, AUM, assets, growth, total accounts, advisory clients, .
|Published (Last):||8 March 2013|
|PDF File Size:||1.58 Mb|
|ePub File Size:||12.21 Mb|
|Price:||Free* [*Free Regsitration Required]|
Before you can solve the problem, you have to admit you have a problem. Thank you This article has been sent to. Treasuries, and they ended up being paid 70 cents on the dollar for their Treasury holdings. But you’re talking about a greater correlation between the financial system and these financial weapons of mass destruction.
If you were offered a game of chance where when you win, you win, and when you lose, you are given another chance to throw the dice, then, of course, everybody would play that game and essentially that is where the financial system is. A compromise will only delay the problem, because it’s a problem of excessive indebtedness and you can’t solve a balance-sheet problem without solving it, except by delaying it. As with any emergency, this requires a tremendous amount of leadership.
And it is critically important to restore the confidence of the population in the fact that the system is not rigged. Unquestionably, things were done that were illegal in many cases, certainly grossly negligent.
Eidesis Capital LLC – Financial Services Firm, New York, New York – BrightScope Advisor Pages
But you have to consider the Philadelphia problem. If this devaluation of financial assets proceeds apace and the moment of clarity comes xapital many investors in the West who realize they need to diversify into assets that can protect against devaluation, demand for physical gold has the potential to rise dramatically. The idea is to position oneself to survive financially and potentially enhance one’s position.
Northern European countries have been trying to figure out how to bail out Southern European countries, which increases their interdependence. Tremendous wealth was created during the Great Depression. Debt increases the risks by increasing the interconnectedness of eiddesis institutions and governments. Our concern is that excessive indebtedness around the world is driving governments to try to perpetuate a protracted deleveraging, because short-term deleveraging is very painful.
For the best Barrons. We have just seen an example of that.
They thought they were simply in custody of Lehman Brothers. Rather than enable a quick but extremely painful deleveraging, Western governments are trying to delay it by borrowing significant amounts to supplement economic activity. Russia, Argentina, Brazil—it didn’t extinguish life in those countries. It’s normalcy bias, a psychological phenomenon that prevents people from seeing unconventional threats.
Investors need to examine old ideas about diversification, and to realize that both bonds and stocks have become much more highly correlated than ever. It’s the means of production. That raises another problem with financial technology—re-hypothecation—where banks make money by lending out collateral.
But there may come a moment when it doesn’t work, and then what’s a safe haven? So you will never have the Philadelphia problem. Gold is not an investment.
Eidesis Capital LLC
Although there’s faith in the U. But there are some natural limitations. All Rights Reserved This copy is for your personal, non-commercial use only. We concluded such an asset is physical gold bullion—not paper or derivative instruments—held securely outside the financial system, which is ca;ital subject to a disruption like we saw inand geographically diversified to provide access to various markets, where the hope is that at least one or some of them would be liquid.
By various fiduciary and criminal standards, we should have seen a tremendous number of prosecutions and successful lawsuits.
Going for Gold in a Dangerous World
It creates perverse incentives because it breaks the price mechanism, which is the most important signal in a free-market economy. If we step back from everything that is going on in the U. Lehman clients couldn’t get full value for assets they didn’t think were at risk. The ability of governments to sustain the unsustainable ultimately rests on their ability to maintain faith in their creditworthiness, and faith is something that takes a long time to crumble.
MF Global’s clients thought they owned commodities.
Many countries have gone through financial disruptions and had their currencies devalued and had all sorts of economic problems, even in the last 20 years. In the movie Trading Placesthe hero is trying to sell his very expensive Swiss watch at a pawn shop in Philadelphia, and he is told that in Philadelphia it’s worth 50 bucks.
It is the value of financial assets that declines. Governments are borrowing more and more, and the spreads of government securities are getting tighter and tighter. It’s just a matter of time. One is to protect the value of part of the portfolio, eidesus the other is to have access to liquidity during market disruptions when you can profit by being able to buy when others do not have access to liquidity.
There is a huge vulnerability. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. There is a global market for it.