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The Fed’s Empire of Speculation and the Echoes of 1929
The Fed’s Empire of Speculation and the Echoes of 1929 Speculation has its own expiration dynamics, and they don’t depend on us recognizing speculative excess for what it is. They will unravel the excesses regardless of what we think, hope or deny. The Federal Reserve has so completely normalized speculative excess that these extremes are […]
“Dr. Doom” Nouriel Roubini Warns Of Stagflationary Megathreat
“Dr. Doom” Nouriel Roubini Warns Of Stagflationary Megathreat Though the threat of an exponential liquidity crisis is a conversation that Bloomberg should have been seriously addressing two years ago, it’s good to see that reality is finally hitting the mainstream media. Nouriel Roubini, also known as “Dr. Doom” because he’s one of the few mainstream […]
A Global Liquidity Crisis Is Underway
A Global Liquidity Crisis Is Underway I’ve been analyzing currency wars for years. In fact, I’ve written a book called Currency Wars, so I have some expertise in the subject. A new front in the currency wars is emerging, but it has not yet erupted into blatant currency manipulation. That will probably come in early 2022. […]
Fed Drains $485 Billion in Liquidity from Market via Reverse Repos, Undoing 4 Months of QE, Even as QE Continues, Total Assets Near $8 Trillion
Fed Drains $485 Billion in Liquidity from Market via Reverse Repos, Undoing 4 Months of QE, Even as QE Continues, Total Assets Near $8 Trillion It’s a crazy situation the Fed backed into as tsunami of liquidity goes haywire, banking system strains under $4 trillion in reserves, and General Treasury Account gets drawn down. This […]
Fed Drains $351 Billion in Liquidity from Market via Reverse Repos, as Banking System Creaks under Mountain of Reserves
Fed Drains $351 Billion in Liquidity from Market via Reverse Repos, as Banking System Creaks under Mountain of Reserves This is the first time I’ve seen Wall Street banks clamor for the Fed to back off QE. The Fed is struggling to keep the liquidity it created from going haywire. In the fall of 2019, […]
The Taper Next Door: Bank of Canada Cuts Bond Purchases by 25%. Total Assets Drop by 13%. Rate Hikes Moved Forward, Possibly July 2022
The Taper Next Door: Bank of Canada Cuts Bond Purchases by 25%. Total Assets Drop by 13%. Rate Hikes Moved Forward, Possibly July 2022 Housing craziness is front and center. The Bank of Canada, which already holds over 40% of all outstanding Government of Canada (GoC) bonds – compared to the Fed, which holds less than 18% […]
Bank of Canada Now Owns 40% of Government of Canada Bonds. Fed a Saint in Comparison. Taper on the Table
Bank of Canada Now Owns 40% of Government of Canada Bonds. Fed a Saint in Comparison. Taper on the Table “Makes you wonder if there’s a potential mid-QE-life crisis taking shape in Ottawa”: strategists at the National Bank of Canada in a note that would be hilarious if it weren’t so serious. The Economics and […]
The First Texas-Freeze Casualty: Just Energy Implodes, Issues Going Concern Warning
The First Texas-Freeze Casualty: Just Energy Implodes, Issues Going Concern Warning Just Energy’s shares crashed more than 21% in the premarket after the company released a statement about steep losses incurred during the winter storms that swept across Texas last week warning of doubts about remaining a ‘going concern’ (translation: it may not survive). “The financial impact […]
The BIS Issues A Dire Warning: “We Are Moving From The Liquidity To The Solvency Phase Of The Crisis”
The BIS Issues A Dire Warning: “We Are Moving From The Liquidity To The Solvency Phase Of The Crisis” There are three certainties in life: death, taxes and the BIS – the central banks’ central bank – warning about excesses from monetary policy (the most recent amusing example of this was last October when as […]
Election Distraction Has Taken Eyes Off Our Economic Ills
Election Distraction Has Taken Eyes Off Our Economic Ills Lately it has been difficult to write about the economy because of all the noise flowing from the election and covid-19 hype. There is a growing reluctance to opine by many economic skeptics because it appears we have been wrong on recent predictions. Only time will […]
An unexpected systemic crisis is for sure
An unexpected systemic crisis is for sure Downturns in bank credit expansion always lead to systemic problems. We are on the edge of such a downturn, which thanks to everyone’s focus on the coronavirus, is unexpected. We can now identify 23 March as the date when markets stopped worrying about deflation and realised that monetary […]
Market Update: The Battle For Control
Market Update: The Battle For Control Which side will prevail in the markets going forward? Reality or rescue? As more data pours in showing the severe and worsening contraction of the global economy due to the impact of covid-19, it’s becoming increasingly clear that the only thing propping up today’s financial markets is the $trillions […]
Long Pitchforks And Water Cannons
Long Pitchforks And Water Cannons The juxtaposition of the following two tweets is absolutely stunning and just freaking… WOW! Potential Major Political Blowback Can you imagine the political blowback that is coming if the economy doesn’t snap back soon as the levered bad actor oil companies (just to name one sector) have been bailed out while […]
The Liquidity Crisis Is Quickly Becoming A Global Solvency Crisis As FRA/OIS, Euribor Soar
The Liquidity Crisis Is Quickly Becoming A Global Solvency Crisis As FRA/OIS, Euribor Soar One month after turmoil was unleashed on capital markets, when the combination of the Saudi oil price war and the sweeping impact of the coronavirus pandemic finally hit developed nations, what was until now mostly a liquidity crisis is starting to […]
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 […]
