Home » Posts tagged 'liquidity' (Page 4)
Tag Archives: liquidity
Weekly Commentary: Thoughts on Liquidity
Weekly Commentary: Thoughts on Liquidity “Money” challenged – and often confounded – economic thinkers for centuries. It functions both as a “medium of exchange” and “unit of account.” Simple enough. Too often the focus has been how to use money to stimulate economic activity and achieve political gains. From my perspective, money’s importance rests with […]
Coffee Sellers Are Not Fundamentally Different From Banks
COFFEE SELLERS ARE NOT FUNDAMENTALLY DIFFERENT FROM BANKS With the 2007-8 financial crisis came a splendid alphabetical soup of central bank interventions to stimulate financial markets, lower interest rates, provide astonishing amounts of liquidity to banks and, allegedly, prevent another Great Depression. Likening the failure of big banks to falling elephants crushing even the smallest grass, […]
“Peak QE”: This Is What Share Of The Market Central Banks Now Own
“Peak QE”: This Is What Share Of The Market Central Banks Now Own After a decade of unprecedented liquidity injections by central banks to preserve the western financial system, global QE has peaked. First, the aggregate balance sheet of major central banks started to shrink earlier in the year, a reversal that took investors many […]
The (ominous) problem with global liquidity
The (ominous) problem with global liquidity Market liquidity is crucial for well-functioning capital markets. There has been a quite lot of talk about diminished market liquidity and the role of machines in it (see, e.g. Q-review 4/2017, this and this). These are worrying developments. However, while market liquidity is crucial for markets, global financial flows, […]
Forced Buy-Ins Spark “Liquidity Crisis” In China’s ‘Nasdaq’
Forced Buy-Ins Spark “Liquidity Crisis” In China’s ‘Nasdaq’ Marking the worst year since 2008, China’s tech-heavy (Nasdaq-equivalent) Shenzhen Composite index is down a shocking 35% year-to-date, and it’s starting to become a self-feeding vicious circle… As Bloomberg reports, the most recent slump in the teach-heavy index comes despite regulators’ efforts to rein in risks of […]
St Louis Fed Discloses More Free Money: A Carry Trade in Liquidity
St Louis Fed Discloses More Free Money: A Carry Trade in Liquidity Not only do banks earn free money on excess reserves, they can borrow money and make guaranteed free money on that. The Federal Reserve Bank of St. Louis discusses the Carry Trade in Liquidity. The IOER [interest on excess reserves] has been the […]
Blain: “Liquidity Will Be The Murder Weapon”
Blain: “Liquidity Will Be The Murder Weapon” “Slain, after all man’s devices had failed, by the humblest things that God, in his wisdom, has put upon this earth”” After last week’s stock market ructions, my market spidey senses are tingling… https://morningporridge.com/stuff-im-watching In the headlights this morning: Saudi Arabia: forget the IPO and worry about MbS […]
Louis Gave On Corporate Debt And The Next Liquidity Crisis
Louis Gave On Corporate Debt And The Next Liquidity Crisis This has been a good year for the stock market so far, at least in the U.S., yet many investors are wondering when the other shoe will drop. We spoke with Louis-Vincent Gave, founding partner and CEO at Gavekal Research, about the explosion in near […]
Inverted Global Yield Curve Creates “The Perfect Cocktail For A Liquidity Crunch” As The IMF Warns Of “A Second Great Depression”
Inverted Global Yield Curve Creates “The Perfect Cocktail For A Liquidity Crunch” As The IMF Warns Of “A Second Great Depression” Why would the IMF use the phrase “a second Great Depression” in a report that they know the entire world will read? To be more precise, the IMF stated that “large challenges loom for […]
Macquarie: “There Is A Growing Possibility That The Plot Might Go Terribly Wrong”
Macquarie: “There Is A Growing Possibility That The Plot Might Go Terribly Wrong” EMs in the crosshairs: Between war games, fake news and bonds From military exercises to trade wars, the fury is intensifying. At the same time, global liquidity is compressing while rates are rising. Growing uncertainty, contracting liquidity & rising cost of capital […]
UN Report Cites Central Bank Liquidity Bubbles, Loose Money, Debt Expansion
UN Report Cites Central Bank Liquidity Bubbles, Loose Money, Debt Expansion A UN report has everything wrong as to the cause of current problems. Yet, the report mentions central bank liquidity. Seldom does one see a report that “debt is the problem” while being 180 degrees wrong as to the cause of the buildup in […]
Joe Saluzzi: The Markets Are Still Way Too Vulnerable To A Sudden Liquidity Disappearance
Joe Saluzzi: The Markets Are Still Way Too Vulnerable To A Sudden Liquidity Disappearance HFTs remain a major issue Joe Saluzzi, co-founder of Themis Trading LLC, outspoken exchange expert, and author of the excellent exposé Broken Markets, returns to give us an update on the state of high frequence trading — otherwise known as HFT. […]
The Growing Pool of Real Savings Permits the Illusion That Central Bank Can Cause Economic Growth
THE GROWING POOL OF REAL SAVINGS PERMITS THE ILLUSION THAT CENTRAL BANK CAN CAUSE ECONOMIC GROWTH Many commentators are of the view that the US central bank should pursue policies that will prevent the possible decline of the economy into a liquidity trap hole. What is this all about? In the popular framework of thinking […]
Liquidity Crisis Coming: Here, There, Everywhere
Liquidity Crisis Coming: Here, There, Everywhere Jim Puplava thinks a liquidity crisis is on the horizon. I agree, adding that the problem is global. Please pay attention to Jim Puplava at Financial Sense. He says a Liquidity Crisis Looming. In total, index funds represent $7 trillion of U.S. stock funds that have no active manager. […]
Steen Jakobsen: Now Is The Time To Be In Capital-Preservation Mode
Steen Jakobsen: Now Is The Time To Be In Capital-Preservation Mode Saxo Bank’s CIO predicts a 15%+ market correction soon Steen Jakobsen, Chief Investment Officer and Chief Economist of Saxo Bank, is sounding a clear warning of an arriving market correction. Over-inflated asset prices, over-crowded trades, anemic market liquidity, and a continued decline in the […]
