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Fed Launches Repo Facility To Provide Dollars To Foreign Central Bank
Fed Launches Repo Facility To Provide Dollars To Foreign Central Bank With US dealers no longer using the Fed’s repo facilities (this morning we had another “no bid” overnight repo with just $250MM in MBS submitted for a $500 billion op) as the Fed soaks up all securities via its aggressive QE which is still […]
Will Coronavirus End the Fed?
Will Coronavirus End the Fed? September 17, 2019 was a significant day in American economic history. On that day, the New York Federal Reserve began emergency cash infusions into the repurchasing (repo) market. This is the market banks use to make short-term loans to each other. The New York Fed acted after interest rates in […]
What Will Be the Unintended Consequences of Printing Trillions of Dollars to Backstop the Entire System?
What Will Be the Unintended Consequences of Printing Trillions of Dollars to Backstop the Entire System? Stocks are up somewhat this morning. This marks the second Monday stocks will open in the green (last Monday was a green open as well) following two horrifically bad weekend sessions that saw stocks open limit down or close […]
Weekly Commentary: The Solvency Problem
Weekly Commentary: The Solvency Problem Being an analyst of Credit and Bubbles over the past few decades has come with its share of challenges. Greater challenges await. I expect to dedicate the rest of my life to defending Capitalism. One of the great tragedies from the failure of this multi-decade monetary experiment will be the […]
#MacroView: The Fed Can’t Fix What’s Broken
#MacroView: The Fed Can’t Fix What’s Broken “The Federal Reserve is poised to spray trillions of dollars into the U.S. economy once a massive aid package to fight the coronavirus and its aftershocks is signed into law. These actions are unprecedented, going beyond anything it did during the 2008 financial crisis in a sign of […]
Japan’s QE On Verge Of Failure As Nobody Wants To Sell To The BOJ
Japan’s QE On Verge Of Failure As Nobody Wants To Sell To The BOJ Over a decade since central bankers started a stealthy nationalization of capital markets by purchasing a wide range of securities from Trasuries, to MBS, to corporate bonds, to ETFs and single stocks, their actions are finally catching up to them, and […]
For An Effective Response To The Upcoming Crisis
For An Effective Response To The Upcoming Crisis Before analyzing the emergency plans that the global economy needs, we must remember that, as in the past, the prudence and responsibility of the civil society and businesses will help us to get out of this crisis. In the face of an unprecedented crisis, we have to be […]
In Unprecedented Move, Fed Unveils Open-Ended QE Including Corporate Bonds
In Unprecedented Move, Fed Unveils Open-Ended QE Including Corporate Bonds Coming into Monday, the Fed had a problem: it had already used up half of its entire emergency $700BN QE5 announced last weekend. Which, together with the plunge in stocks, is why at 8am on Monday, just as we expected – given the political cover they have […]
The Global Repricing of Assets Can’t Be Stopped
The Global Repricing of Assets Can’t Be Stopped All bubbles pop, period. The financial elites are pushing a narrative that asset prices, sales and profits will all return to January 2020 levels as soon as the Covid-19 pandemic fades. Get real, baby. Nothing is going back to January 2020 levels. Rather than the “V-shaped recovery” expected […]
The House that Ben Built
The House that Ben Built Yes, this collapse does portend to be far worse than the last and it’s a very different type of financial collapse too. After credit markets froze in the subprime crash of 2008-2009 Ben Bernanke and the Fed conjured up a number of monetary tricks to keep the system afloat. POMO, […]
Covid-19 Helicopter Money: Go Big Now or Go Home
Covid-19 Helicopter Money: Go Big Now or Go Home This is why it’s imperative to go big now, and make plans to sustain the most vulnerable households and small employers not for two weeks but for six months–or however long proves necessary. That governments around the world will be forced to distribute “helicopter money” to […]
Fed Disaster: S&P Futures Crash, Halted Limit Down; Gold, Treasuries Soar After Historic Fed Panic
Fed Disaster: S&P Futures Crash, Halted Limit Down; Gold, Treasuries Soar After Historic Fed Panic The Fed may have a very big problem on its hands. After firing the biggest emergency “shock and awe” bazooka in Fed history, one which was meant to restore not just partial but full normalcy to asset and funding markets, Emini futures are […]
Something Is Breaking: Fed Fails To Ease Epic Dollar Shortage As FRA/OIS Goes Parabolic
Something Is Breaking: Fed Fails To Ease Epic Dollar Shortage As FRA/OIS Goes Parabolic One certainly can’t blame the Fed for trying: after firing a repo “bazooka” yesterday, which could provide up to $5 trillion in monthly liquidity in exchange for eligible pledged securities, and following that up with an emergency QE operation today when […]
Funding Markets Are Freezing: Global Dollar Shortage Hits Alarming Levels
Funding Markets Are Freezing: Global Dollar Shortage Hits Alarming Levels The surging demand for repo liquidity – and massively expanded bailout facility size by the New York Fed – suggests there is a major global scramble for USD funding, and today’s price action in the archaic money markets exposes it has now reached extremely alarming […]
