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Tag Archives: fed
Broken System
Broken System The Fed poisons everything, and I mean everything. From markets, the economy, and I will even go as far as politics. Sounds far fetched? Let me make my case below. But as much as the Fed poisons everything this crisis here again reveals a larger issue: The system is completely broken, it can’t […]
“It Will All End Badly” The Coming Economic End Game
“It Will All End Badly” The Coming Economic End Game The wonderful thing about numbers is that when they are not jockeyed, jerked around, and falsified they tend to tell the truth. Continuing on this thought looking down the road the numbers do not work. This is where the late, Allen Meltzer, recognized for his […]
Weekly Commentary: Fault Lines
Weekly Commentary: Fault Lines Now on a weekly basis, we’re witnessing things that couldn’t happen – actually happen. April 20 – Bloomberg (Catherine Ngai, Olivia Raimonde, and Alex Longley): “Of all the wild, unprecedented swings in financial markets since the coronavirus pandemic broke out, none has been more jaw-dropping than Monday’s collapse in a key […]
Fed Cut Back on Helicopter Money for Wall Street & the Wealthy
Fed Cut Back on Helicopter Money for Wall Street & the Wealthy Tapered QE-4 Further, Still Hasn’t Bought Junk Bonds or ETFs, Was Just Jawboning. Total assets on the Fed’s balance sheet rose by $205 billion during the week ending April 22, to $6.57 trillion. Since the week ending March 11, when the bailout of the Everything […]
Banks Will Not Bail Out The Economy
Banks Will Not Bail Out The Economy These days, we hear a lot that banks were the problem in the 2008 crisis and now they are the part of the solution. Banking was not the main problem of the 2008 crisis, but one of the symptoms that indicated a more serious disease, the excess risk taken by […]
Eric Peters: ‘Fed Isn’t Just Delaying The Inevitable Reckoning…It’s Making It Worse’
Eric Peters: ‘Fed Isn’t Just Delaying The Inevitable Reckoning…It’s Making It Worse’ As investors in the US and around the world confront the fact that the Federal Reserve is never really out of ammo, One River Asset Management Founder Eric Peters joined Erik Townsend for an interview on Townsend’s weekly MacroVoices podcast, which features in-depth interviews with […]
The destructive force of bank credit
The destructive force of bank credit Commentators routinely confuse the deflationary effects of a contraction of bank credit with the inflationary effects of central bank policies designed to offset it. Central banks always ensure their stimulus is greater, so inflation, not deflation, is always the outcome. In order to understand bank credit, we must enter […]
The Trickle-Up Bailout
The Trickle-Up Bailout It’s early days, but the Federal Reserve “bazooka” has mostly impacted the 1% Take a look at some contrasting sets of headlines. First, from planet earth: Weekly Jobless Claims Hit 5.425 Million, Raising Monthly Loss To 22 Million Due To Coronavirus (CNBC) Worst Case Fears Of 20%-Plus U.S. Jobless Rate Are Now Realistic (Bloomberg) […]
OPINION: Foxes in the henhouse – Who decides where bailout money goes?
OPINION: Foxes in the henhouse – Who decides where bailout money goes? In the wake of the COVID-19 pandemic, trillions of bailout dollars in the U.S. and Canada are about to be fire hosed into particular areas of the economy. Given that this is public money held by governments, who decides where and to whom […]
Credit Markets – The Waiting Game
Credit Markets – The Waiting Game Everything and the Kitchen Sink After the first inter-meeting rate cut in early March, we opined that further rate cuts were a near certainty and that “not-QE” would swiftly morph into “QE, next iteration” (see Rate Cutters Unanimous for the details). As it turned out, the monetary mandarins did not even […]
Weekly Commentary: When Money Died
Weekly Commentary: When Money Died Sitting at the dinner table, our eleven-year old son inquired: “If a big meteor was about to hit the earth, how much money would the Fed print?” I complimented his sense of humor. Yet it was a sad testament to the historic monetary fiasco that will haunt his generation. Federal […]
Worst Recession in 150 Years
Worst Recession in 150 Years The stock market had another big day today, spurred by the Fed’s massive recent liquidity injections. But you really shouldn’t be terribly surprised by the rally. Even the worst bear markets see substantial bouncebacks. And you can expect the market to give back all of its recent gains in the […]
What Are You Gonna Do About It?
What Are You Gonna Do About It? Tucked into the recent recovery bill was a provision granting the Federal Reserve the right to set up a $450 billion bailout plan without following key provisions of the federal open meetings law, including announcing its meetings or keeping most records about them, according to a POLITICO review […]
What Happens When The Pandemic Ends?
What Happens When The Pandemic Ends? Let’s assume that by the end of this year a combination of social distancing and some new and effective treatments convert covid-19 from existential threat to chronic nuisance and the economy starts to assume an air of normalcy. Which is to say that people go back to traveling and […]
The very complex Jigsaw
The very complex Jigsaw Blain’s Morning Porridge – 14 April 2020. “If you try to take a cat apart to see how it works, the first thing you will have is a non-working cat.” On Thursday I posted a note on the Fed doing exactly what I predicted – a programme to buy high-yield junk. […]
