Lee's Latest Free Thinking

Wall Street Examiner Under DOS Attack – UPDATE

UPDATE- We have managed to mitigate this issue and have removed the browser test. Thanks for your patience! Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves in stocks and bonds,…

Falling Interest Rates Illusion Leads Wall Street to Dangerous Wrong Conclusion

Short term interest rates have fallen sharply in recent weeks. Wall Street says that falling interest rates mean the economy is weak. Therefore the Fed will cut rates in July, and perhaps several more times this year.  Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through…

Liquidity Trader

We Knew the Treasury Paydowns Would Be Bullish, But What Now?

Last month in the Treasury Supply update (May 16) I wrote that the debt ceiling would continue to force the Treasury to pay down debt, short term T-bills in particular. I said that the paydowns “will continue until the end of Q2. That’s bullish for bonds, and possibly for stocks.” Follow the money. Find the profits!Liquidity is money. Regardless of…

Must Read

90% Done is Really 5% Done

Only a little earlier this morning, equity markets around the world exploded higher on the news that the I-am-so-sick-of-talking-about-it China/US trade deal was “90% done.” Turns out that Treasury Secretary Mnuchin was simply bemoaning…

World’s Dollar Shortage Problem is The Fed’s Problem

I thought this one needed a separate notation, though the same subject as the previous article. We’re still talking about the foreign repo pool, or monetary policy’s original reverse repo. It’s basically a way for overseas official governments and central banks to tell the Fed’s New York branch they’re uncomfortable with the dollar condition. How […]

U.S. 2-Year Swap Spread Turns Negative for the First Time

As central banks like the US Federal Reserve try to counter a sagging global economy (and preserve asset bubbles), strange things begin to happen. Like the US 2-year swap spread going negative for the first time ever! (Bloomberg) — The U.S. 2-year swap rate moved below the 2-year Treasury note’s yield for the first time ever … Continue reading Grim Fandango! U.S. 2-Year Swap Spread Turns Negative (First Time Ever!!)