Andrew B. Busch is the founder of andrewbusch.com, a research and consulting firm.
Busch has appeared for the last three years on CNBC's "Closing Bell" with Maria Bartiromo and is a CNBC contributor. He is regularly quoted in The Wall Street Journal, Reuters, Dow Jones, The Associated Press and The Globe and Mail.
Previously, he was the global currency and public policy strategist for BMO Capital Markets, the investment and corporate banking arm of BMO Financial Group. Busch is a senior fellow on economic issues for the Illinois Policy Institute and an American Action Forum Expert.
He consults with the staffs from the U.S. Treasury, Congress, and the White House on economic and financial market issues; he has met and advised the last three U.S. Treasury secretaries, including Tim Geithner. Busch also was an advisor on the economy and the financial markets to Republican presidential candidate John McCain.
Busch is a recognized expert on the world financial markets and how these markets are affected by political events. He spoke at the Pacific Economic Conference in Russia on the global credit crisis, and met and consulted with the governor of Primorsky Territory and the mayor of Vladivostok over the future direction of the Russian economy.
He is a prolific writer whose views appear daily in his newsletter, the Busch Update; monthly, he writes the Busch GPS: Global Political Strategy; and his book, "World Event Trading: How to Analyze and Profit From Today's Headlines," has been translated into Mandarin and Japanese.
He joined BMO Financial Group in 1990 in the foreign exchange trading room of Harris Trust and Savings Bank, which merged with Bank of Montreal's room in 1995. Prior to joining Harris, Busch traded foreign exchange at Northern Trust Company.
Busch graduated Phi Beta Kappa with a B.A. in economics from Ohio Wesleyan University and received his MBA from the University of Chicago.
Follow Andrew Busch on Twitter @abusch.
The equity market collapse began in the Far East as Sony shares slide 14 pct after they issued a profit warning. The electronics maker cut its profit forecast in half as the strong Japanese yen and the ongoing credit crisis is hurting demand for its cameras and flat TVs.
It seems there is a global effort to exacerbate the problems and worries of the world. Let's start in Japan where Prime Minister Taro Aso said today that people should not be over-concerned about daily movements in Japanese share prices, after the benchmark Nikkei average fell to a 5-year low.
I was thinking about that $43 billion withdrawn from hedge funds in the September quarter. I think I failed to extend the thought. If hedge funds are 4 times levered, the $43 billion becomes $172 billion in securities that had to be sold for the redemptions.
The extreme moves in the emerging markets had a very distinct feel of forced sales due to margin calls or redemption calls. With the Brazilian stock market closing after a drop of 10% and the currency vanishing, we are experiencing a evaporation of liquidity as flows go all in one direction.
On the opening of New York trading, central banks from 6 major countries cut interest rates by 50 basis points, with Japan and Norway not participating. This is another piece of the puzzle to stabilize the financial markets. I believe these central banks acted in concert to address the continued deterioration in lending and the further tightening of credit.
Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”
Andrew B. Busch is the founder of andrewbusch.com.
Managing Director and Chief Investment Officer, Bessemer Trust
Director, Senior Foreign Exchange Sales at UniCredit AG
Editor and Publisher, The Gartman Letter