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, .
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But the policy measures—essentially zero interest rates—are like antibiotics. A cardinal rule of risk management is, don’t put all your eggs in one basket.
So they are trying to support the prices of goods and services that have been overproduced, which are financials. Simon Mikhailovich knows a thing or two about financial weapons of mass destruction. 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. That raises another problem with financial technology—re-hypothecation—where banks make money by lending out collateral.
We came up with a vehicle that enables investors to do the same thing. Recently, the Swiss National Bank announced that it holds its reserves in diverse locations around the globe. 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.
To order presentation-ready copies for distribution to your colleagues, clients or customers visit http: The price of gold never rises. 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. The most important thing for the government to do is admit the truth: But you have to consider the Philadelphia problem.
Rather than enable a quick but extremely painful deleveraging, Western governments are trying to delay it by borrowing significant amounts to supplement economic activity. Despite the fact that JPMorgan Chase was lauded as the most capable risk-management institution, it is facing potentially very large losses.
Governments are borrowing more and more, and the spreads of government securities are getting tighter and tighter. We don’t know the real cost of misallocation of capital.
Going for Gold in a Dangerous World
Investors need to examine old ideas about diversification, and capiral realize cqpital both bonds and stocks have become much more highly correlated than ever.
For the best Barrons. Northern European countries have been trying to figure out how to bail out Southern European countries, which increases their interdependence. That poses threats that have never existed before to the stewards of capital. Secular changes that disrupt technologies are traditionally very, very difficult, and many will lose.
But once it goes, it can go very quickly. Too big to fail is now too bigger to fail. Based on recent precedent, it’s clear the politicians have no incentive to act unless they are faced with some sort of existential threat. Its valuation is driven exclusively by supply and demand.
Treasuries, and they ended up being paid 70 cents on the dollar for their Treasury holdings.
Gold is a store of value. It’s silver, diamonds, Rembrandts, Picassos, real estate.
Interview With Simon Mikhailovich – Barron’s
This financial system is completely unsustainable. Unquestionably, things were done that were capitzl in many cases, certainly grossly negligent. If this devaluation of financial assets proceeds apace and the moment of clarity comes for 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.
That is a very intelligent way to allocate part of your portfolio to this sort of reserves. Lehman clients couldn’t get full value for assets they didn’t think were at risk. The benefit of land and of paintings and other stores of value is that they are not financial assets and they do preserve value over an extended period.
Eidesis Capital – CB Insights
Gold is eldesis an investment. There are two roles of uncorrelated sources of returns, or reserves, in a central banking sense. Debt increases the risks by increasing the interconnectedness of financial institutions and governments. Here is the paradox: Many things have to go right in the short term to delay the eventual resolution, if you will. When you combine the government policies with the level of interconnectedness in markets, it creates a recipe for disaster.
Reserves are essentially hedges or protections, they’re monies or some value that is sitting on the sidelines that can be pressed into service if something happens and you need to rely on these stores of value, for two reasons. Developed markets that are the repositories of most of global financial wealth have had de minimis demand for physical gold. By various fiduciary and criminal standards, we should have seen a tremendous number of prosecutions and successful lawsuits. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www.
So the creditworthiness is getting worse and the cost of funding is getting better. And it is critically important to restore the confidence of the population in the fact that the system is not rigged. It’s normalcy eidesid, a psychological phenomenon that prevents people from seeing unconventional threats. With a wealth of experience in structured credit, he co-founded Eidesis Capital in with Michael Sollott, after they completed a buyout of the collateralized-debt-obligation business of St.