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Tag Archives: liquidity
Curious Events in Risk-Free Collateral-Land – Precious Metals Supply and Demand
Curious Events in Risk-Free Collateral-Land – Precious Metals Supply and Demand Liquidity Shortage Last week the price of gold rose $28, and silver $0.53. But the prices of the metals was not the big news last week. The price of repo — a repurchase agreement, to sell and repurchase a treasuries — skyrocketed. Banks were […]
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 […]
The Corroboration and Costs of Fear Gold
The Corroboration and Costs of Fear Gold Gold is the ultimate hedge, but it is far from perfect. Unlike, say, sovereign bonds there should be no expectation for a negatively correlated price. You can buy a UST or German bund even at negative yields and at least expect the price to rise when things are […]
History Being Made: Negative Rates, Fake Markets, & The Imminent “Daily Liquidity” Crisis
History Being Made: Negative Rates, Fake Markets, & The Imminent “Daily Liquidity” Crisis Transformational Markets: History Being Made No-Bond World And The Risk Of A Daily Liquidity Crisis Rates hit new lows this month. Symbolically, the 50-year swap rate in Europe dived into negative territory. Bonds as an asset class are in extinction, a major […]
Liquidity Stress Fractures Begin to Show in the Federal Reserve System
Liquidity Stress Fractures Begin to Show in the Federal Reserve System In my January Premium Post, “An Interesting Interest Conundrum,” I laid out how the Federal Reserve was losing control over the Fed funds rate — a loss of control over its bedrock interest rate that indicates financial stresses are building in the banking system […]
China’s Looming Liquidity Shortage (Or Why Endless Stimulus Isn’t Working)
China’s Looming Liquidity Shortage (Or Why Endless Stimulus Isn’t Working) Chinese Premier Li promised yet more stimulus measures overnight from tax cuts to focused rate reductions (but, he admitted, not blanket liquidity provision). But, after over 60 different ‘stimulus’ measures in the last few months and last night’s promises, nothing seems to be working as China’s economic data continues to […]
Blain: It Feels Like A Liquidity Storm Is Coming Soon
Blain: It Feels Like A Liquidity Storm Is Coming Soon I note with some delight Bernie Sanders plans to stand for US President. One of my US chums sent me the story of the Half-a-Bernie sign propped up against a wall. Someone had cut it neatly in two and left the wooden handle affixed to […]
For the First Time Since 2007, Central Banks Are Net DRAINING Liquidity
For the First Time Since 2007, Central Banks Are Net DRAINING Liquidity Yesterday was a wake up call for the bulls. Unfortunately it’s only going to get worse. The fact is that no matter what verbal interventions Central Banks or the political elite issue, liquidity is now rapidly leaving the financial system. The Fed continues […]
The ECB’s Quantitative Easing was a Failure–Here is What it Actually Did
THE ECB’S QUANTITATIVE EASING WAS A FAILURE — HERE IS WHAT IT ACTUALLY DID The main reason why the ECB quantitative easing program has failed is that it started from a wrong diagnosis of the eurozone’s problem. That the European problem was a demand and liquidity issue, not due to years of excess. The ECB […]
Market Commentary: Issues 2019
Market Commentary: Issues 2019 When I began posting the CBB some twenty years ago, I made a commitment to readers: “I’ll call it as I see it – and let the chips fall where they will.” Over the years, I made a further commitment to myself: Don’t be concerned with reputation – stay diligently focused […]
Kass: Follow The Money
Kass: Follow The Money The Tremor Before the Quake and the Fed’s $450 Billion Balance Sheet Reduction “The combination of rate hikes and balance sheet reductions from the Federal Reserve in 2018 sucked up global U.S. dollar liquidity and put emerging markets under immense pressure in 2018. Emerging market equities were 20-30% lower from February […]
Monday Musings on Monetization and Markets (or Fundamentals Don’t Matter, Liquidity Does)
Monday Musings on Monetization and Markets (or Fundamentals Don’t Matter, Liquidity Does) Being I’m not an economist nor associated with any financial or investment institutions nor do I have anything for you (dear reader) to buy or sell, I have total freedom to say what I please and freedom to share what I see. In that spirit, I […]
The Everything Bubble Has Met Its Needle… and It’s Named Jerome Powell
The Everything Bubble Has Met Its Needle… and It’s Named Jerome Powell In December, Jerome Powell confirmed that he is going to implement a financial reset. That reset will crash stocks. We know this because the Fed didn’t even HINT at tapering its Quantitative Tightening program at this latest Fed FOMC despite stocks staging the […]
What Is Behind The Market’s Record Liquidity Collapse
What Is Behind The Market’s Record Liquidity Collapse One week ago, when we first previewed this week’s infamous $60 billion pension fund rebalancing out of equities and into bonds which resulted in historic market gyrations, and a violent snapback in the S&P from what was shaping up to be the worst December on record for […]
What Is Behind The Market’s Record Liquidity Collapse
What Is Behind The Market’s Record Liquidity Collapse One week ago, when we first previewed this week’s infamous $60 billion pension fund rebalancing out of equities and into bonds which resulted in historic market gyrations, and a violent snapback in the S&P from what was shaping up to be the worst December on record for […]
