Today Credit Suisse released its latest annual global wealth report, which traditionally lays out what is perhaps the biggest reason for the recent “anti-establishment” revulsion: an unprecedented concentration of wealth among a handful of people, as shown in its infamous global wealth pyramid, an arrangement which as observed by the “shocking” political backlash of the past few months suggests that the lower ‘levels’ of the pyramid are increasingly unhappy about.
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Time For Truth: (Zero Hedge) – Global Wealth Update: 0.7% Of Adults Control $116.6 Trillion In Wealth
the ECB’s Benoit Coeure held a closed-door speech under “Chatham House” rules in which he leaked to an audience of hedge funds in London that “the central bank would moderately front-load its purchases in its quantitative easing program because of the seasonal lack of market liquidity in the summer.” The reaction was an instant 50 pips drop in EURUSD as one or more funds decided to ignore the “rules”, and promptly traded on the material, market moving leak.
While the Chicago Board Options Exchange Volatility Index (VIX) has continued moving lower following its February surge, suggesting that some calm has returned to the markets, Credit Suisse Group AG’s Fear Barometer just hit a new high.
The index, which measures the opportunity cost of buying protection against a decline in stocks, usually sees increases like this due to higher demand for “puts,” or options which give investors the right to sell equities, and lower demand for “calls,” which give the right to buy. Specifically, the barometer calculates how far “out of the money” an investor would have to go to purchase a three-month put on the S&P 500 that is the same price as a 10-percent out of the money three-month call option.
A recession in Europe could lead to the collapse of the eurozone, as the single currency would buckle under the political turmoil unleashed by a fresh downturn, a leading investment bank has warned.
In a research note titled “Close to the edge”, economists at Swiss bank Credit Suisse warned the fate of monetary union hangs in the balance if Europe’s policymakers are unable to ward off another global slump and quell anti-euro populism.