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Two Pins Threatening Multiple Asset Bubbles
Two Pins Threatening Multiple Asset Bubbles “Powell Says Fed Policies “Absolutely” Don’t Add To Inequality” -Bloomberg May 2020 The headline above is but one of countless times Fed Chairman Powell and his colleagues confidently said their policies do not result in wealth or income inequality. Their political stature and use of complex economic lingo give […]
The Global Financial End-Game
The Global Financial End-Game The over-indebted, overcapacity global economy an only generate speculative asset bubbles that will implode, destroying the latest round of phantom collateral. For those seeking a summary, here is the global financial endgame in fourteen points: 1. In the initial “boost phase” of credit expansion, credit-based capital ( i.e. debt-money) pours into […]
Have You Noticed How Push-Back Against Powell-Fed’s Actions Is Getting Louder in the Mainstream Media, from NPR to CNBC?
Have You Noticed How Push-Back Against Powell-Fed’s Actions Is Getting Louder in the Mainstream Media, from NPR to CNBC? Still a lot of fawning coverage, but big dissenters are now given prominent spots, and loaded questions are used to politely hammer Powell into telling obvious nonsense. This is an interesting turn of events, in a […]
What a Relief that the U.S. and Global Economies Are Booming
What a Relief that the U.S. and Global Economies Are Booming Doing more of what’s failed for ten years will finally fail spectacularly..It was a huge relief to see the charts of the Baltic Dry Index (BDI) and the U.S. retail sector ETF (RTH): both have soared to the moon, signaling that both the U.S. […]
The Fed and Asset Bubbles
THE FED AND ASSET BUBBLES In his speech on April 7 2010 at the Economic Club of New York the President of the New York Fed, William Dudley argued that asset bubbles pose a serious threat to real economic activity. The New York Fed chief is of the view that the US central bank should […]
Blame the Fed — Not Investors — For Asset Bubbles
Blame the Fed — Not Investors — For Asset Bubbles In his speech on April 7 2010 at the Economic Club of New York the President of the New York Fed, William Dudley argued that asset bubbles pose a serious threat to real economic activity. The New York Fed chief is of the view that […]
What Just Changed?
What Just Changed? The illusion that risk can be limited delivered three asset bubbles in less than 20 years. Has anything actually changed in the past two weeks? The conventional bullish answer is no, nothing’s changed; the global economy is growing virtually everywhere, inflation is near-zero, credit is abundant, commodities will remain cheap for the […]
Why the Financial System Will Break: You Can’t “Normalize” Markets that Depend on Extreme Monetary Stimulus
Why the Financial System Will Break: You Can’t “Normalize” Markets that Depend on Extreme Monetary Stimulus Central banks are now trapped. In a nutshell, central banks are promising to “normalize” their monetary policy extremes in 2018. Nice, but there’s a problem: you can’t “normalize” markets that are now entirely dependent on extremes of monetary stimulus. […]
What Causes Asset Bubbles?
What Causes Asset Bubbles? As we showed yesterday, the price of bitcoin has finally surpassed “Tulips” in the global bubble race. Overnight the former Bridgewater analysts Howard Wang and Robert Wu, who make up Convoy Investments, released their thoughts on what happens next… and most importantly, what causes asset bubbles… When we see a dramatic […]
Eric Peters: “This Is The Nightmare Scenario For The Next Fed Chair”
Eric Peters: “This Is The Nightmare Scenario For The Next Fed Chair” While we will have much more to share from the latest weekend letter by One River’s Eric Peters shortly, we found the following section on inflation vs asset bubbles – a topic which BofA’s Michael Hartnett has been focusing extensively on in the […]
Algeria Officially Launches Helicopter Money Amid Sliding Oil Revenue, Budget Crisis
Algeria Officially Launches Helicopter Money Amid Sliding Oil Revenue, Budget Crisis One year ago, the imminent arrival of helicopter money among endless discussions of pervasive lowflation was all the rage within high-finance policy circles. Then, everything changed as if on a dime, and in recent months the dominant topic has been global coordinated tightening – […]
The Trouble with Asset Bubbles: If You Stop Pumping, They Pop
The Trouble with Asset Bubbles: If You Stop Pumping, They Pop The idea that authorities can massage their pumping to keep asset bubbles inflated at a permanently high plateau is currently being tested. The trouble with inflating asset bubbles is that you have to keep inflating them or they pop. Unfortunately for the bubble-blowing central […]
BofA: Even The Bubbles Are Becoming More “Bubbly” Thanks To Central Banks
BofA: Even The Bubbles Are Becoming More “Bubbly” Thanks To Central Banks Back in June, Citi’s credit strategist Hans Lorenzen pointed out that while QE had failed to spark inflation across the broader economy, it had achieved something else: “the principal transmission channel to the real economy has been… lifting asset prices.” That however has […]
Will the Crazy Global Debt Bubble Ever End?
Will the Crazy Global Debt Bubble Ever End? There are multiple sources of friction in the Perpetual Motion Money Machine. We’ve been playing two games to mask insolvency: one is to pay the costs of rampant debt today by borrowing even more from future earnings, and the second is to create wealth out of thin […]
I was asked: Whatever Happened to Inflation after all this Money-Printing?
I was asked: Whatever Happened to Inflation after all this Money-Printing? So where’s my free lunch? I was asked once again why all this central-bank “money-printing” along with global zero-interest-rate or even negative-interest-rate policies haven’t caused a big bout of inflation, considering how currencies are getting watered down. It’s a crucial question that baffled many […]
