In this interview, Jason asks Erik if central banks have a viable exit strategy to remove liquidity? Erik thinks they will try but no one knows for sure what will happen when they try.
Jason and Erik discuss how despite asset prices rising a lot for years now how nothing was materially fixed after the 2008 financial crisis.
Jason asks Erik about the VIX exploding higher and then crashing and if there’s an AIG out there who sold a bunch of naked short put options to profit off the leveraged short volatility trade that has been profitable for years?
Erik thinks after interviewing volatility hedge fund manager Christopher Cole of Artemis Capital that rather than one giant AIG that the problem is systemic and pervasive within the financial industry.
Next, Jason asks Erik about exchange traded funds or ETFs and the potential problems with them? Are just the leveraged ETFs the ticking time bombs are are more regular ETFs bad too?
To wrap up the interview, Jason asks Erik about the Euro Dollar market. Erik interviewed hedge fund manager Jeffrey Snider for over 4 hours starting in August 2017 for the 4 part Euro Dollar University series. www.macrovoices.com/300-jeffr…
Eric agrees with Jason that the amount of liquidity has exploded in size in that market to essentially the size of its own central bank. And no one knows where all the money is going, or which counter parties have the most exposure. Erik says that the Euro Dollar market broke in 2007 and that will continue to cause enormous problems in asset prices and the global financial system.
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