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Tag Archives: qe
World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought?
World’s Biggest Ever Junk Bond Bubble in Pictures: What Hath Draghi Wrought? In regards to ECB QE bond purchases, inquiring minds may be asking: What hath ECB president Mario Draghi wrought? I can explain in one picture. The answer in words: The world’s biggest junk bond bubble. I prefer gold. On August 4, I commented on […]
“The End Of The QE Trade”: Why Bank of America Expects An Imminent Market Correction
“The End Of The QE Trade”: Why Bank of America Expects An Imminent Market Correction Last Friday, when looking at the historic, record lows in September volatility and the daily highs in US and global equity markets, BofA’s chief investment strategist Michael Hartnett said that the “best reason to be bearish in Q4 is there […]
The Koyaanisqatsi Economy
The Koyaanisqatsi Economy KoyaanisqatsiThe film Koyaanisqatsi was released in 1982. The title means ‘life out of balance’ in the language of the Hopi, a Native American tribe who live(d) mainly in what is now north-east Arizona. It is directed by Godfrey Reggio with music by Philip Glass and cinematography by Ron Fricke. There are no […]
Left Behind
Left Behind Fan Ho The Evening of Life 1963“Forget Germany, Spain Is The Real Problem”, reads a headline. Eh… no. Germany is definitely the problem in Europe. Spain is a bit player. That doesn’t mean nothing major could happen in Spain in its fight with Catalonia, and soon, but Spain, like all EU nations, is […]
What A Fed Rate Hike Means For U.S. Shale
What A Fed Rate Hike Means For U.S. Shale North American shale oil and gas companies have proven that they can adapt their business model through the lower crude oil prices cycle. Now, the new challenge for shale producers is how to adjust their financial strategy when the Federal Reserve (Fed) raises interest rates. Since […]
QT1 Will Lead to QE4
QT1 Will Lead to QE4 There are only three members of the Board of Governors who matter: Janet Yellen, Stan Fischer and Lael Brainard. There is only one Regional Reserve Bank President who matters: Bill Dudley of New York. Yellen, Fischer, Brainard and Dudley are the “Big Four.” They are the only ones worth listening […]
This Fed is on a Mission
This Fed is on a Mission QE Unwind starts Oct. 1. Rate hike in Dec. Low inflation, no problem. The two-day meeting of the FOMC ended on Wednesday with a momentous announcement that has been telegraphed for months: the QE unwind begins October 1. It marks the end of an era. The unwind will proceed […]
Federal Reserve Will Continue Cutting Economic Life Support
Federal Reserve Will Continue Cutting Economic Life Support I remember back in mid-2013 when the Federal Reserve fielded the notion of a “taper” of quantitative easing measures. More specifically, I remember the response of mainstream economic analysts as well as the alternative economic community. I argued fervently in multiple articles that the Fed would indeed […]
When This Debt Bubble Bursts, Central Banks Will Turn to Money Printing… Again
When This Debt Bubble Bursts, Central Banks Will Turn to Money Printing… Again Let’s face the facts. The only reason the financial system has held together so well since 2008 is because Central Banks have created a bubble in bonds via massive QE programs and seven years of ZIRP/NIRP. As a result of this, the […]
Bubble Fortunes
Bubble Fortunes Wynn Bullock Child on a Forest Road 1958 A few days ago, former Reagan Budget Director and -apparently- permabear (aka perennial bear) David Stockman did an interview (see below) with Stuart Varney at Fox -a permabull?!-, who started off with ‘the stock rally goes on’ despite a London terror attack and the North […]
Why Quantitative Easing In The Eurozone Will Be Extended
Why Quantitative Easing In The Eurozone Will Be Extended The staff of the European Central Bank has now released the new macro-economic projections for the Eurozone and whilst the introduction sounds optimistic about an ever-increasing GDP and a relatively stable GDP growth rate, reading between the lines suggests we could see an extended Quantitative Easing […]
What Does the QE Experience Say About Rates in a Shrinking Fed Balance Sheet World?
What Does the QE Experience Say About Rates in a Shrinking Fed Balance Sheet World? The Federal Reserve is likely to decide next week to begin letting assets roll of its balance sheet as bonds mature, instead of reinvesting the proceeds. This means that the balance sheet will begin to shrink in size and other […]
Gold Jumps After Mnuchin Says “Less Concerned About Inflation Than Economic Growth”
Gold Jumps After Mnuchin Says “Less Concerned About Inflation Than Economic Growth” In a potentially revealing glimpse of what is to come from the next Fed head, Treasury Secretary Steven Mnuchin, speaking during a Politico forum, told the audience: “Although we respect the Fed’s independence, we are concerned about economic growth. We’re doing everything we […]
Bill Blain Crawls Back Into His Pit: “There Is Apparently Nothing To Worry About”
Bill Blain Crawls Back Into His Pit: “There Is Apparently Nothing To Worry About” What do we know different this morning? There is apparently nothing to worry about. Everything is coming up roses. These are not the droids you are looking for – says my market guru Steve Previs. All the old market bears, like […]
BofA: Even The Bubbles Are Becoming More “Bubbly” Thanks To Central Banks
BofA: Even The Bubbles Are Becoming More “Bubbly” Thanks To Central Banks Back in June, Citi’s credit strategist Hans Lorenzen pointed out that while QE had failed to spark inflation across the broader economy, it had achieved something else: “the principal transmission channel to the real economy has been… lifting asset prices.” That however has […]
