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Tag Archives: Federal Reserve

Fed Cuts QE Helicopter Money for Wall Street Further. Still Hasn’t Bought Junk Bonds or ETFs. Was Just Jawboning

Loans to “SPVs” declined to lowest since March 25. By Wolf Richter for WOLF STREET. Total assets on the Fed’s balance sheet rose by $65 billion during the week ended May 6 — the smallest weekly increase since the week of February 26, when assets fell by $13 billion. And it was down 89% from peak-bailout in the week ended March 25. The chart depicts the weekly changes of total assets on Fed’s balance sheet: The chart below of the Fed’s total assets, now at $6.72 trillion, shows the...

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Peter Schiff: The Fed Can Never Take the Easy Money Drug Away

The Federal Reserve is creating a massive amount of money out of thin air and injecting it into the economy. Pretty much everybody believes this is the only choice given the economic emergency we face. But we’re told once the emergency is over, the Fed will take the excesses away. In his podcast, Peter Schiff explains why this will never happen. Once the drug addict is hooked, you can’t just take the drug away.Peter started the podcast saying he thinks the bear market relief rally is...

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Nothing’s Fixed: What’s Behind the Corporate Debt Bailout

Nobody knew what would trigger the next financial crisis, but just about everyone knew it would involve the record pile of corporate debt. And so it happened. Now the Fed fixed it… By Wolf Richter. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT: Something spectacular happened in April, despite the gut-wrenching phenomenon that 30 million people lost their jobs in the United States: In late February and early March, credit markets were freezing up and...

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What Happens When the Bond Bubble Pops?

Celsius Network, founder and CEO Alex Mashinsky calls the bond market, “the biggest bubble that hasn’t burst yet.” And when the massive bond bubble pops, that’s when the real earthquake begins.The US Treasury Department is pumping out bonds like there’s no tomorrow. It announced this week that it plans to borrow $2.99 trillion in this quarter alone. The projected borrowing for fiscal 2020 comes in at a staggering $4.48 trillion.All of these Treasuries are pouring into an already bloated...

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ABANDON SHIP & Let the Fed Decide If You Drown

Imagine you’re on a ship that has struck an iceberg, and you know it’s going down. You quickly grab the life vests for you and your family. You rush to the deck to go to the lifeboats, but there you encounter some authority…that is actively taking life vests away from one group of people by force, and giving them to another group of people, and leading them to the lifeboats – deciding who will live, and who will die. In this analogy, the ship is the economy, and the...

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Peter Schiff: A Very Dangerous Road to Go Down

As if there weren’t enough headwinds for the economy already, the reported the Trump administration was exploring the possibility of canceling some US debt obligations to China.  President Trump denied it but floated the idea of tariffs on Chinese imports as punishments for that country’s handling of the coronavirus. Peter Schiff appeared on to talk about the economic saber-rattling and the possible impacts on the US stock market.Peter said even threatening to default or selectively...

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THE WOLF STREET REPORT: Nothing’s Fixed – What’s Behind the Corporate Debt Bailout

Over the past two years, nobody knew what would trigger the next financial crisis, but just about everyone knew it would involve the record pile of corporate debt. And so it happened. Now the Fed fixed it… By Wolf Richter for WOLF STREET. Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate. I appreciate it immensely. Click on the beer and iced-tea mug to find out how: Would you like...

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Tale of Two Cities: SchiffGold Friday Gold Wrap May 1

US stock markets just had their best month since 1987. Meanwhile, the economic data is as bad as it’s ever been. It’s almost like a tale of two cities. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey digs into some of the data and explains why the damage to the economy caused by the coronavirus government shutdowns is deeper than a lot of people think. He also talks about silver. It’s as cheap as it’s ever been in human history.The SchiffGold Friday Gold Wrap podcast...

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Fed Drastically Slashed Helicopter Money for Wall Street. QE Down 86% From Peak Week in March

Fed shed MBS. Loans to “SPVs” flat for fifth week. Repos in disuse. Fed still hasn’t bought junk bonds, stocks, or ETFs. But it sure sent Wall Street dreaming. By Wolf Richter for WOLF STREET. Total assets on the Fed’s balance sheet rose by only $83 billion during the week ending April 29, to $6.656 trillion. That $83 billion was the smallest weekly increase since this show started on March 15, and down by 86% from peak-bailout in the week ended March 25. This chart shows the weekly...

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They’re All High on Fed Fairy Dust

Everybody realizes the US economy is in a bad spot. But most people still seem to believe it will bounce right back once we deal with the coronavirus.They’re all high on Federal Reserve fairy dust.US GDP contracted by 4.8% in the first quarter. It was the first negative GDP reading since a 1.1% decline in the first quarter of 2014 and it was the lowest level since the 8.4% plunge in Q4 of 2008.And the worst is yet to come.The Q1 GDP number only captures the first couple of weeks of...

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