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State Street: “Move Over Zero Hedge, There Is A New Bear In Town”

State Street: “Move Over Zero Hedge, There Is A New Bear In Town” By Mr. Risk – State Street Global Markets Unleash Volatility Beast Thanks for nothing, central banks! If central banks provided the prototypical inflection point, risk assets should get destroyed next week. Feast your eyes on a compendium of volatility charts. The beast […]

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Like Everything Else, History Repeats (Almost Exactly) Because Power Truly Corrupts

Like Everything Else, History Repeats (Almost Exactly) Because Power Truly Corrupts With both the Bank of Japan and Federal Reserve today undertaking policy considerations at the same time, it is useful to highlight the similarities of conditions if not exactly in time. As I wrote this morning, what the Fed is attempting now is very nearly […]

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Not Even Goldman Has Any Clue How The BOJ Will “Control” The Yield Curve

Not Even Goldman Has Any Clue How The BOJ Will “Control” The Yield Curve The biggest news overnight, and certainly far bigger than this afternoon’s non-event from Janet Yellen, was the significant change in monetary policy announced by the BOJ which (belatedly) unveiled its re-revised “QQE”… this time “with Yield Curve Control” (or “QQEWYCC“), a […]

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Why Did Japanese NIRP Cause Such Surprise In the Currency Market and Is It More Dangerous?

WHY DID JAPANESE NIRP CAUSE SUCH SURPRISE IN THE CURRENCY MARKET AND IS IT MORE DANGEROUS? The Bank of Japan announcement of NIRP sent shock waves through currency markets The Yen has strengthened on capital repatriation since the BoJ move JGB 10 year yields turned negative this week Longer-term the Yen will weaken At the […]

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Negative-Interest-Rate Effect already Dead, Central Banks Lost Control over Stocks

Negative-Interest-Rate Effect already Dead, Central Banks Lost Control over Stocks And there’s a bitter irony. The Bank of Japan’s surprise Negative-Interest-Rate party for stocks set a new record: it lasted only two days. Today a week ago, the Bank of Japan shocked markets into action. As the economy has deteriorated despite years of zero-interest-rate policy […]

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Jeffrey Snider: Kuroda’s Rebuke Came Awfully Swift

Jeffrey Snider: Kuroda’s Rebuke Came Awfully Swift There must be a universal speech template included in the monetary textbook that is shared among the various central banks. On September 28, 2015, Haruhiko Kuroda, Governor of the Bank of Japan, delivered a speech that wasn’t just similar to the press conference Janet Yellen had endured only a week […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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