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Tag Archives: monetary easing
Yellen Is Trapped in the Worst Nightmare Ever
Yellen Is Trapped in the Worst Nightmare Ever Yellen has inherited a complete nightmare. Thursday’s decision to delay yet again the long-awaited liftoff from zero interest rates is illustrating that the world economy is totally screwed. There is a lot of speculation about why the Fed seems so reluctant to“normalize monetary policy”. There are of course […]
Why The Keynesian Chorus Is Cackling Like Chicken Little
Why The Keynesian Chorus Is Cackling Like Chicken Little This is getting way too stupid. The Keynesian Chorus has launched a full blast trilling campaign, emitting a shrill cackle of warnings against a Fed rate hike. Yes, 80 months of pumping free money into the canyons of Wall Street is not enough. Why? Well, this is hard to type with a straight […]
Emerging Market Currencies To Crash 30-50%, Jen Says
Emerging Market Currencies To Crash 30-50%, Jen Says Less than 24 hours ago, we argued that although it might have seemed as though Brazil hit rock bottom in Q2 when it suffered through the worst inflation-growth mix in over a decade, things were likely to get worse still. The country, which is also coping with twin deficits […]
The Rich Get Richer: Titanic Stock Bubble Fueled by Buyback Blitz
The Rich Get Richer: Titanic Stock Bubble Fueled by Buyback Blitz Why are stocks still flying-high when the smart money has fled overseas and the US economy has ground to a halt? According to Marketwatch: “For the eighth week in a row, long-term mutual funds saw more money flowing out of U.S. stocks and into international stocks, according […]
High End Real Estate in Canada in Frenzied Bubble Blow-Off
High End Real Estate in Canada in Frenzied Bubble Blow-Off Throwing Caution to the Wind We have discussed the dangerous housing and consumer credit bubble in Canada in these pages on several previous occasions in some detail (see “Carney’s Legacy” and “A Tale of Two Bubbles” as examples). Since we first wrote about Canadian real […]
China Considers Launching QE; Shanghai Stocks Soar
China Considers Launching QE; Shanghai Stocks Soar Nearly two months ago we explained “How Beijing Is Responding To A Soaring Dollar, And Why QE In China Is Now Inevitable” in which we cited Cornerstone who reminded us “that from 2007 to late 2008, U.S. fed funds dropped 500 bp, and then the Fed still needed […]
The Fed Blew It
The Fed Blew It The Fed had multiple opportunities to let the air out of unsustainable asset bubbles by notching interest rates higher and tapering its asset purchases (QE). The Federal Reserve blew it by not normalizing interest rates a long time ago. The consensus in financial circles is the exact opposite: the Fed has blown […]
The ECB’s Lunatic Full Monty Treatment
The ECB’s Lunatic Full Monty Treatment Not Quite Right in the Head? The belief that the market economy requires “steering” by altruistic central bankers, who make decisions influencing the entire economy based on their personal epiphanies, has rarely been more pronounced than today. Most probably it has actually never been stronger. It is both highly amusing and […]
“Default Monday”: Oil & Gas Companies Face Their Creditors
“Default Monday”: Oil & Gas Companies Face Their Creditors Debt funded the fracking boom. Now oil and gas prices have collapsed, and so has the ability to service that debt. The oil bust of the 1980s took down 700 banks, including 9 of the 10 largest in Texas. But this time, it’s different. This time, […]
One Last Look At The Real Economy Before It Implodes – Part 1
One Last Look At The Real Economy Before It Implodes – Part 1 We are only two months into 2015, and it has already proven to be the most volatile year for the economic environment since 2008-2009. We have seen oil markets collapsing by about 50 percent in the span of a few months (just […]
JANET YELLEN IS A COWARD
JANET YELLEN IS A COWARD Headline: Yellen Is Loathe To Change Easy Money Policy With her diminutive stature, dutch-boy haircut and puffy facial features Janet Yellen certainly does not look like a leader…more like a Brooklyn grandmother eager to tell you her special recipe for chocolate chip cookies. In this case, unfortunately, her appearance does […]
China Cuts Interest Rates, Takes Number Of Central Banks Easing In 2015 To 21
China Cuts Interest Rates, Takes Number Of Central Banks Easing In 2015 To 21 And then there were 21. Hours ago on Saturday, the country whose currency is largely pegged to the dollar which itself is now anticipating a rate hike in the coming months, surprised the world by confirming its economic slowdown yet again […]
The “Liquidity Glut” Springs Eternal: Global Central Bank Easing Quadruples In 2015
The “Liquidity Glut” Springs Eternal: Global Central Bank Easing Quadruples In 2015 Thanks to global disinflationary pressures driven by the savings glut, an oil glut, and universally high (peak) debt levels (crushing the transmission mechanisms of textbook economists), central planners have gone full ease-tard in 2015. From a ‘balanced’ 10 easing, 9 tightening bias (~1:1) in […]
Central Banks Have Lost Control Of The World
Central Banks Have Lost Control Of The World With the world’s oldest central bank – Sweden’s Riksbank – taking the plunge into negative rates, there have been 19 ‘eases’ by central banks this year, Morgan Stanley warns of “ghosts of the 1930s.” With competitive ‘easing’ stoking fears of international currency wars,The Telegraph notes however that looser monetary policy is […]
Shale sub-prime and the Ides of March
Shale sub-prime and the Ides of March “Sub-prime” is the term by which became known the debt market segment that served low quality housing in the US. Essentially these were products supporting mortgages to low-middle class families, that in 2006/07, up against the simultaneous rise in interest rates and commodities prices, produced a wave of […]
