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Tag Archives: asset prices
Wolf Richter: The Era Of The Fed “Put” Is Over
Wolf Richter: The Era Of The Fed “Put” Is Over It now wants lower asset prices (just not too fast) To all those investors expecting the Fed to step in to backstop the recent weakness seen in the stock market, Wolf Richter warns: The cavalry isn’t coming. After years of force-feeding too much liquidity into […]
In this Era of Inflated Asset Prices, Can the Fed Raise Rates without Causing Financial Mayhem?
In this Era of Inflated Asset Prices, Can the Fed Raise Rates without Causing Financial Mayhem? Wolf Richter on the Keiser Report. The Fed is trying to accomplish a soft landing — hence the extraordinarily slow rate hikes — but our history with soft landings is very spotty, and there has never been more debt than now: Investors […]
A Warning Knell From the Housing Market–Inciting a Riot
A WARNING KNELL FROM THE HOUSING MARKET – INCITING A RIOT? Global residential real estate prices continue to rise but momentum is slowing Prices in Russia continue to fall but Australian house prices look set to follow After a decade of QE, real estate will be more sensitive to interest rate increases As anyone who […]
Bob Shiller Warns World’s “Priciest Stock Market” Could “Absolutely Turn Suddenly”
Bob Shiller Warns World’s “Priciest Stock Market” Could “Absolutely Turn Suddenly” Nobel Prize-winning economist Robert Shiller told CNBC Tuesday that a market correction could come at any time and without warning… “People ask ‘well what will trigger [a market correction]?’ But it doesn’t need a trigger, it’s the dynamics of bubbles inherently makes them come […]
You’re Just Not Prepared For What’s Coming
You’re Just Not Prepared For What’s Coming Not even close I hate to break it to you, but chances are you’re just not prepared for what’s coming. Not even close. Don’t take it personally. I’m simply playing the odds. After spending more than a decade warning people all over the world about the futility of […]
The ‘Hyper-Crash’ Is Coming – It’s Not The Everything Bubble, It’s The Global Short Volatility Bubble
The ‘Hyper-Crash’ Is Coming – It’s Not The Everything Bubble, It’s The Global Short Volatility Bubble Two weeks ago, we discussed the recent report from Artemis Capital Management, “Volatility and the Alchemy of Risk – Reflexivity in the Shadows of Black Monday 1987”, authored by Christopher Cole. See “In the Shadows Of Black Monday – […]
Must Stop Digging
Must Stop Digging Amazon, Google, Microsoft, Intel and Draghi all handily beat expectations. Booming technology earnings confirm the degree to which Bubble Dynamics have become entrenched within the real economy. Draghi confirms that central bankers remain petrified by the thought of piercing Bubbles. There is a prevailing view that Bubbles reflect asset price gains beyond […]
Bubble-nomics
Bubble-nomics Question: What is a bubble? Answer: A bubble is trade in an asset at a price range that strongly exceeds the asset’s intrinsic value. Or it could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future. Question: How do you know […]
BofA: “Central Banks Are Now In A Desperate Dilemma”…”Start Buying Volatility”
BofA: “Central Banks Are Now In A Desperate Dilemma”…”Start Buying Volatility” One week after the second biggest weekly inflow to Wall Street on record, the “risk on” rotation ended abruptly in the ensuing five days, when as Bank of America writes overnight, it observed “Inflows to structural “deflation”, outflows from cyclical “inflation”; with oil the […]
As Housing Prices Soar, Finance Minister Is Well Invested
As Housing Prices Soar, Finance Minister Is Well Invested Gov’t must be ‘careful about intervening,’ says Mike de Jong, who has a stake in several properties. Finance Minister Mike de Jong’s most recent financial disclosure shows he received rental income from seven investment properties. Photo: BC Gov’t Flickr. Taking action to reduce housing prices in Vancouver […]
2016: Oil Limits and the End of the Debt Supercycle
2016: Oil Limits and the End of the Debt Supercycle What is ahead for 2016? Most people don’t realize how tightly the following are linked: Growth in debt Growth in the economy Growth in cheap-to-extract energy supplies Inflation in the cost of producing commodities Growth in asset prices, such as the price of shares of stock […]
Bank of America Explains How Central Banks Rigged And Manipulated The Market
Bank of America Explains How Central Banks Rigged And Manipulated The Market It used to be the provenance of “conspiracy theorists” – alleging that central banks have manipulated, rigged or otherwise broken the “efficient market.” That is no longer the case. As we previously showed, now even the big banks admit it. However, since for some […]
Even The Big Banks Now Admit It: “This Is How The Fed’s ‘Massive Manipulation’ Broke The Market”
Even The Big Banks Now Admit It: “This Is How The Fed’s ‘Massive Manipulation’ Broke The Market” Raise your hand if this sounds familiar: markets are calm, things are stable, stocks are levitating on virtually no volume… and suddenly there is a price ‘air pocket’ as one or more assets unexpectedly plunge in what has become […]
Advice to the Prime Minister/President
Advice to the Prime Minister/President Your country faces a stagnating economy. Let us assume your Prime Minister (or President if that is who holds the executive power) seeks advice from two imaginary economists. PM: You two economists have different views on what our economic policy should be. What is your advice? FIRST ECONOMIST (Austrian school): Prime Minister, the […]
