Lee's Latest Free Thinking

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

Short Term Positive Liquidity, Long Term Scary

The Composite Liquidity Indicator remains near a record extreme, and that’s scary. Here’s what you need to know. 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,…

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Holding Tight to Our Mining Picks

As gold consolidates we are holding our mining picks with adjusted stops. All 6 are in the green. 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…

Deutsche Bank To Set Up €50 Billion ‘Bad Bank’

Like the Led Zeppelin song “Good times, Bad times,”  German mega bank Deutsche Bank is trying to save itself by splitting into a good bank and a bad bank. Why is my former employee doing this? Deutsche Bank was a high-flyer back in May 2007 when it was trading at over $120 per share. It is … Continue reading Hackepeter! Deutsche Bank To Set Up €50 Billion ‘Bad Bank’ As Part Of Overhauls (Largely Long-dated Derivatives)

Mortgage Prepayments Vex Ginnie Mae

New York | Last week The Institutional Risk Analyst participated the Ginnie Mae Summit in Washington. The event was packed and featured some important discussions about the state of the residential mortgage market. We received applause from the audience for suggesting that FHA resolution costs for defaulted loans should be the same as the GSEs. But hold that thought. And there were lighter moments. Federal Housing Finance Administration head Mark Calabria continued to backpedal skillfully