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Fed’s QE Unwind Accelerates Sharply
Fed’s QE Unwind Accelerates Sharply With a sense of urgency. No more dilly-dallying around. The Fed’s balance sheet for the week ending January 31, released this afternoon, completes the fourth month of QE-unwind. And it’s starting to be a doozie. This “balance sheet normalization” impacts two types of assets: Treasury securities and mortgage backed securities […]
Will Monetary Policy Trigger Another Financial Crisis?
Getty Images Will Monetary Policy Trigger Another Financial Crisis? Sustained unconventional monetary policies in the years after the 2008 global financial crisis created the conditions for the second-longest bull market in history. But they also may have sown the seeds of the next financial crisis, which might take root as central banks continue to normalize […]
What Will Rising Mortgage Rates Do to Housing Bubble 2?
What Will Rising Mortgage Rates Do to Housing Bubble 2? Oops, they’re already rising. The US government bond market has further soured this week, with Treasuries selling off across the spectrum. When bond prices fall, yields rise. For example, the two-year Treasury yield rose to 2.06% on Friday, the highest since September 2008. In the […]
According To Albert Edwards, This Country Will Trigger The “Great Unwind”
According To Albert Edwards, This Country Will Trigger The “Great Unwind” For years, SocGen’s permabear Albert Edwards was best known for preaching the gospel of terminal deflation, having introduced the “Ice Age” concept some three decades ago to describe a world trending toward monetary paralysis and the failure of conventional economic policies as central banks […]
QE Party Over, even by the Bank of Japan
QE Party Over, even by the Bank of Japan First decline in its colossal balance sheet since 2012. An amazing – or on second thought, given how central banks operate, not so amazing – thing is happening. On one hand… Bank of Japan Governor Haruhiko Kuroda keeps saying that the BOJ would “patiently” maintain its […]
Quantitative Tightening Is the Biggest Economic Threat in 2018
Quantitative Tightening Is the Biggest Economic Threat in 2018 In response to the 2008 financial crisis, the Fed and other central banks deployed zero or near-zero interest rates, quantitative easing, and assorted other interventions. These may have averted an even worse disaster, but their impacts were far from ideal. Nonetheless, the economy slowly lifted off […]
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 […]
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 […]
Why Quantitative Tightening Will Fail
Why Quantitative Tightening Will Fail After nine years of unconventional quantitative easing (QE) policy the Federal Reserve is now setting out on a new path for quantitative tightening (QT). QE was a policy of money printing. The Fed did this by buying bonds from the big banks. The banks would then deliver bonds to the […]
Get Ready for ‘QT1’: A First Look at the Federal Reserve’s Hidden Policy
Get Ready for ‘QT1’: A First Look at the Federal Reserve’s Hidden Policy [Ed. Note: Jim Rickards’ latest New York Times bestseller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, is out now. Learn how to get your free copy – HERE. This vital book transcends rhetoric from the […]
Meet QT; QE’s Evil Twin
Meet QT; QE’s Evil Twin There is a growing sense across the financial spectrum that the world is about to turn some type of economic page. Unfortunately no one in the mainstream is too sure what the last chapter was about, and fewer still have any clue as to what the next chapter will bring. […]