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More Money Pumping Won’t Make Us Richer
More Money Pumping Won’t Make Us Richer Whenever a central bank introduces easy monetary policy, as a rule this leads to an economic boom — or economic prosperity. At least this is what most commentators hold. If this is however the case then it means that an easy monetary policy can grow an economy. But […]
Stunning Consensus Emerges: Fed May Announce Launch Of QE In Just A Few Hours
Stunning Consensus Emerges: Fed May Announce Launch Of QE In Just A Few Hours It was back on August 6, in an article titled “Forget China, The Fed Has A Much Bigger Problem On Its Hands“, where we explained why in response to the coming dollar funding shortage and liquidity crunch (we warned about this […]
Nomura Exposes The Fed’s Imminent “Mega-Shift” – Beware Quad Witch & “Untethered” Markets
Nomura Exposes The Fed’s Imminent “Mega-Shift” – Beware Quad Witch & “Untethered” Markets “This is a big deal,” warns Nomura’s Charlie McElligott – a man not known for hyperbole – as he reflects on the sudden, dramatic changes occurring in the very deepest levels of plumbing of the world’s supposed most-liquid markets. Another massively over-subscribed repo […]
Liquidity Shortage Getting Worse: Fed’s Repo Oversubscribed As Funding Demand Soars 50% Overnight
Liquidity Shortage Getting Worse: Fed’s Repo Oversubscribed As Funding Demand Soars 50% Overnight 20 minutes after today’s repo operation began, it concluded and there was some bad news in it: as we feared, yesterday’s take up of the Fed’s repo operation which peaked at $53.2 billion has expanded substantially, and according to the Fed, today there […]
Blain’s Morning Porridge – September 18th 2019
Blain’s Morning Porridge – September 18th 2019 “There is no equilibrium, we invest into unstable constantly changing markets. ” Why so Calm? Even as the Fed meeting pondered raising rates by a smidge, it had to intervene to pump money into the short-term US financial system for the first time since the 2008 crisis. That’s […]
Will the Bank of England join the loose money bandwagon?
Will the Bank of England join the loose money bandwagon? As the year of the 325th anniversary of the Bank of England’s foundation, and as the month of one of the Bank’s more important rate-setting decisions since 2008, September provides a congruous occasion on which to reflect on the history of the BoE and consider […]
Energy Expert Warns Oil Shocks Hit The Economy With Incredible Speed, Usually Within Thirty Days
Energy Expert Warns Oil Shocks Hit The Economy With Incredible Speed, Usually Within Thirty Days The lasting damage from the weekend’s attacks on Saudi oil infrastructure is yet to be fully assessed. Having said that, we can make some broad statements about supply outages and economic cycles. Although we tend to forget it, almost all […]
Oil Explodes 20% Higher, Biggest Jump On Record
Oil Explodes 20% Higher, Biggest Jump On Record With traders in a state of near-frenzy, with a subset of fintwit scrambling (and failing) to calculate what the limit move in oil would be (hint: there is none for Brent), moments ago brent reopened for trading in the aftermath of Saturday’s attack on the “world’s most […]
Hedge Fund CIO: “The Biggest Market Player Is 15x Leveraged; That’s Why When It Starts Going Wrong, You’re Out”
Hedge Fund CIO: “The Biggest Market Player Is 15x Leveraged; That’s Why When It Starts Going Wrong, You’re Out” “Wanted to make sure you’re seeing this,” texted a PM from one of those multi-manager monstrosities. “8 standard deviation move in the Momentum Factor in 5-days,” he added. I heard his heart pounding all the way […]
How Much Will Oil Surge When Trading Reopens
How Much Will Oil Surge When Trading Reopens Now that Goldman has successfully sparked a near-frenzy of chaos, confusion (and market buy orders) ahead of tonight’s trading open, the only question is how high will oil surge. And according to some preliminary estimates, oil analysts expect crude prices to jump at least $5 to $10 a barrel […]
Goldman Goes “Lehman Weekend” On Oil: Expects Chaos When Trading Reopens
Goldman Goes “Lehman Weekend” On Oil: Expects Chaos When Trading Reopens Exactly 11 years to the day since traders organized an emergency impromptu CDS unwind session ahead of Lehman’s shocking September 15, 2008 bankruptcy filing, major banks are preparing for similar chaos, only this time in the crude oil market in the aftermath of Saturday’s […]
Could Be “Weeks” Before Aramco Restores Full Production Capacity As Specter Of $100 Oil Looms
Could Be “Weeks” Before Aramco Restores Full Production Capacity As Specter Of $100 Oil Looms With the Saudis now racing to restore full oil production to normal levels as one Sunday morningheadline noted, the industry is bracing for a potential significant delay in production — given rumors the fires at the facilities struck in the early hours of […]
Peter Schiff: Negative Interest Rates Are Boneheaded
Peter Schiff: Negative Interest Rates Are Boneheaded Donald Trump has been badgering Federal Reserve Chairman Jerome Powell for months, begging for lower interest rates. Yesterday, he took things to another level, saying that the “boneheads” at the Fed need to push rates into negative territory. In his podcast, Peter Schiff said negative interest rates are […]
Turkey Exposes Central Bank Incompetence
Turkey Exposes Central Bank Incompetence Last year I asked whether Turkey would be “City Zero in Global Contagion.” That question was based on the crisis unfolding in the Turkish lira which materially threatened a number of major European banks, especially those in Italy. This week highlighted something really interesting for me that, I think, sets […]
De-Dollarization: Europe Joins the Party
De-Dollarization: Europe Joins the Party The ongoing “World War of Currencies”, as the German journalist Daniel D. Eckert called it, the battle for the future of the world monetary system is not a shallow action film but more like Game of Thrones – a complex series with hundreds of actors and locations, stretching over decades and demanding […]
