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Tag Archives: zirp
This is When Bonds Go Kaboom!
This is When Bonds Go Kaboom! The toxic miasma of “distressed debt.” It’s getting tougher out there for our QE and ZIRP-coddled corporate junk-bond heroes. Unisys, whose revenues and profits decline year after year and whose stock dropped from over $400 a share during the prior tech bubble to $13 a share now, withdrew its […]
“Everyone’s Praying But No One’s Believing” – The ‘Fed Put’ Is Dead
“Everyone’s Praying But No One’s Believing” – The ‘Fed Put’ Is Dead Chalk Outline Yellen’s detailed speech initially triggered an out-sized market reaction. Unfortunately, it was mainly due to shallow market depth and weak-hand positions. The ‘risk-on’ trades that ensued seem driven by positional unwinds from short-term traders. These markets will likely reverse back to lower prices […]
From ZIRP to NIRP
From ZIRP to NIRP The sudden end of the Fed’s ambition to raise interest rates above the zero bound, coupled with the FOMC’s minutes, which expressed concerns about emerging market economies, has got financial scribblers writing about negative interest rate policies (NIRP). Coincidentally, Andrew Haldane, the chief economist at the Bank of England, published a […]
“Emerging Markets Are On The Verge Of Liquidation” Top Performing Hedge Fund Manager Warns; “QE4 Is Coming”
“Emerging Markets Are On The Verge Of Liquidation” Top Performing Hedge Fund Manager Warns; “QE4 Is Coming” Until recently, John Burbank’s Passport Capital was one of the top 15 performing hedge funds in 2015. Recent events have only led to an even higher YTD P&L making Burbank one of the top performing managers of 2015: […]
Riding ZIRP Into The Doom Loop—–Monetary Central Planning’s Dead End
Riding ZIRP Into The Doom Loop—–Monetary Central Planning’s Dead End What the Fed really decided Thursday was to ride the zero-bound right smack into the next recession. When that calamity happens not too many months from now, the 28-year experiment in monetary central planning inaugurated by a desperate Alan Greenspan after Black Monday in October 1987 will come to […]
Shale Oil’s “Dirty Little Secret” Has Been Exposed
Shale Oil’s “Dirty Little Secret” Has Been Exposed On Friday, on the way to diving into Goldman’s $20 crude call, we recapped our characterization of low crude prices as a battle between the Fed and the Saudis, a battle which is now manifesting itself in budget troubles in Riyadh and a concurrent FX reserve burn. […]
Fourth Turning: Crisis of Trust
Fourth Turning: Crisis of Trust “Imagine some national (and probably global) volcanic eruption, initially flowing along channels of distress that were created during the Unraveling era and further widened by the catalyst. Trying to foresee where the eruption will go once it bursts free of the channels is like trying to predict the exact fault […]
Why The Keynesian Chorus Is Cackling Like Chicken Little
Why The Keynesian Chorus Is Cackling Like Chicken Little This is getting way too stupid. The Keynesian Chorus has launched a full blast trilling campaign, emitting a shrill cackle of warnings against a Fed rate hike. Yes, 80 months of pumping free money into the canyons of Wall Street is not enough. Why? Well, this is hard to type with a straight […]
David Stockman Sums It All Up In 3 Minutes
David Stockman Sums It All Up In 3 Minutes Stockman unleashes truthiness hell on Bloomberg TV: “Federal Reserve [actions] will have disastrous long-term consequences… when you deny price-discovery in the market for so long, it is a massive subsidy to speculation… In an era of peak debt, the only thing zero interest rates achieve is create an […]
The Endless Emergency—–Why It’s Always ZIRP Time In The Casino
The Endless Emergency—–Why It’s Always ZIRP Time In The Casino Based on the headline from the latest Jobs Friday report you wouldn’t know that we are still mired in an economic emergency—–one apparently so extreme that it might entail moving to the 81st straight month of zero interest rates at next week’s FOMC meeting. After all, the unemployment rate came in smack-dab on the Fed’s […]
Fallout From Petrodollar Demise Continues As Qatar Borrows $4 Billion Amid Crude Slump
Fallout From Petrodollar Demise Continues As Qatar Borrows $4 Billion Amid Crude Slump Early last month in “Cash-Strapped Saudi Arabia Hopes To Continue War Against Shale With Fed’s Blessing,” we noted the irony inherent in the fact that Saudi Arabia, whose effort to bankrupt the US shale space has blown a giant hole in the […]
The Central Bankers’ Malodorous War On Savers
The Central Bankers’ Malodorous War On Savers Well, that didn’t take long! After just three days of market turmoil the monetary politburo swung into action. This time they sent out B-Dud to promise still another monetary sweetener. Said the head of the New York Fed, “From my perspective, at this moment, the decision to begin the normalization process […]
Why the Bear of 2015 Is Different from the Bear of 2008
Why the Bear of 2015 Is Different from the Bear of 2008 Are there any conditions now that are actually better than those of 2008? It’s tempting to see similarities in last week’s global stock market mini-crash and the monumental meltdown that almost took down the Global Financial System in 2008-2009. The dizzying drop invites comparison […]
