Part 2 (for part 1, please look here) At the beginning of part 1, I offered three theories to explain what happened on global stocks markets, culminating in the flash crash of August 24, 2015: Flash-crash induced by high-frequency traders and panic-covering of short positions in volatility products US and China mutually crashing each other’s…

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US June non-farm payrolls (+223,000) came in roughly in line with expectations (+230,000). However, revisions over the past five months add up to -154,000. Each of the past five months has been revised downwards (something last seen during the 2008/09 financial crisis). No reason to sound the alarm, but definitely worth watching. Year-over-year, employment growth…

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From FT’s Peter Spiegel: “Alexis Tsipras, the Greek prime minister, has announced a national referendum on whether his country should agree to creditors’ demands that would release desperately-needed bailout aid to avoid national bankruptcy. In a televised address to the nation after a late-night meeting of his cabinet, Mr Tsipras announced that the plebiscite would…

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The Wall Street Journal called recent deposit outflows from Greek banks a “bank jog” (as opposed to “bank run”). A bank run usually leads to affected banks running out of cash quickly (within days or hours). The Greek banking system has been bleeding deposits since years. But the movement has been accelerating last week: If…

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