Tuesday , October 15 2019
Home / Tag Archives: Interest rates (page 34)

Tag Archives: Interest rates

Be Kind To Pets And Economic Forecasting Dodos…

Oh, spare a kind thought for the economists… crippled by the intellectual feebleness of algebraic (and utterly useless) models and hamstrung by the need to sell ‘good news’ to naive retail clients pounded by the sell-side ‘research’, they have it tough in this life. And the things are going to get tougher.So far, in anticipation of the U.S. Fed hikes, virtually all economics analysts working for sell-side stuff brokers have been declaring their firm conviction that once the Fed raises rates,...

Read More »

The Fed’s Sunny Skies Get Another Rebuke—–Credit Markets Keep Deteriorating

By all meaningful measures, credit markets today aren’t any different than they were after the first “dollar” wave crested and subsided. Despite all that has transpired all over the place in 2015, this resiliency is worrisome. No matter how much commentary wishes it to be a comforting tool of monetary policy adjusting into economic salvation, the fact that these indications predate any such acknowledgement renders a very different judgment; as does the steadiness in the bearishness of it...

Read More »

Calling The Sheep: Pets.Com In 2000, McMansions in 2005, Bear Stearns in 2007, FANG in 2015

By The Burning Platform The minutes from the last Fed meeting were released on Wednesday afternoon. The minutes, along with a squadron of jabbering Fed heads lying about the economy doing great, pretty much locked in the most talked about .25% interest rate increase in world history.  Evidently the Wall Street titans of greed have convinced the muppets higher interest rates are great for stocks, as the market soared by 250 points. As institutional money exits the market on these rigged up...

Read More »

The Federal Reserve, Interest Rates and Triffin’s Paradox

One result of the global dependence on central bank interventions is a unhealthy fixation on the slightest changes in those interventions, oops I meant policies. Since the slightest pull-back in central bank inflation of asset bubbles could spell doom for the global economy and everyone holding those assets, the world now hangs on every pronouncement of the Federal Reserve in a state of extreme anxiety. Why the extreme anxiety? Because any change in Fed intervention creates both winners...

Read More »

Why Savers Will Be Nailed To ZIRP—-Even If The Fed Tweaks The Funds Rate

By Liz McCormick at Bloomberg The blowout U.S. jobs report for October means the Federal Reserve may be weeks away from raising interest rates. For U.S. savers earning next to nothing on $2.6 trillion of money-market mutual funds, the move will barely register. The reason is that there’s an unprecedented shortfall in the safest assets, especially Treasury bills — a mainstay of those funds and traditionally the government obligations that are most sensitive to changes in Fed policy. The...

Read More »

The Quick Burn of Balance Sheet Capacity Is the Recovery’s Mangled End

While the stock market had one of its best months in years, it was, like the jobs report, uncorroborated by almost everything else. The junk bond bubble, in particular, stands in sharp and stark refutation of whatever stocks might be incorporating, especially if that might be based upon assumptions of Yellen’s re-found backbone. Do or do not, corporate junk remains unimpressed and therefore depressed against the same background drowning as has been in place going back to June 2014. At...

Read More »

Cheap Money Is Fueling A Record M&A Boom

By Adrien De Calan at France24 Anheuser-Busch InBev, the giant behind top lager brands like Beck’s, Budweiser and Stella Artois, is seeking to swallow rival SABMiller in a deal worth more than $120 billion when debt is included PARIS (AFP) – A flood of cheap money is financing the biggest boom in mega-mergers and takeovers since the 2008 global financial crisis. But analysts warn that hastily arranged corporate marriages that seem blissful in good financial times can end in tears, and...

Read More »

Banally Hopeful——The Fed’s ‘Partly’ Corner Gets Smaller And More Suffocating Every Meeting

  There is much less to an FOMC statement than the FOMC minutes, all far less than the actual meeting transcripts. That is why the statement is available immediately, the minutes within a month , but you will wait more than 5 years for the actual discussion. In the case of this “recovery”, that delay worked to our collective disadvantage, for had the actual discussions in 2007 and 2008 been readily available nobody would have followed the central bank path thereafter. Policymakers...

Read More »

The US Soft Patch Deepens——Weak CapEx Belies Escape Velocity Meme

By Lucia Mutikani at Reuters A gauge of U.S. business investment plans fell for a second straight month in September, pointing to a sharp slowdown in economic growth and casting more doubts on whether the Federal Reserve will raise interest rates this year. Other data on Tuesday showed consumer confidence slipped this month amid worries over a recent moderation in job growth and its potential impact on income. Housing, however, remains the bright spot, with home prices accelerating in...

Read More »

China’s Steel Demand Evaporating At Unprecedented Speed, Says Top Industry Official

By Bloomberg News If anyone doubted the magnitude of the crisis facing the world’s largest steel industry, listening to Zhu Jimin would put them right, fast. Demand is collapsing along with prices, banks are tightening lending and losses are stacking up, the deputy head of the China Iron & Steel Association said on Wednesday. “Production cuts are slower than the contraction in demand, therefore oversupply is worsening,” said Zhu at a quarterly briefing in Beijing by the main producers’...

Read More »