Anthony B. Sanders

Swiss Franc Skyrockets As National Bank Goes Deeper Into Negative Deposit Rates, US Treasury 10Y Drops Below 1.80%

One thing that sticks out this morning in the currency matrix is the Swiss Franc. The Swiss Franc soared relative to the US Dollar. Why? The Swiss National Bank (SNB) announced that it is doubling down on negative interest rates on deposit balances NIRP from -0.25% to -0.75%. In addition, the SNB announced that the […]

Mrs. Toad’s Wild Ride: Dow Loses 530 Pts In 24 Hours, US Treasury 10 Down 8.5 Basis Points (Retail Sales Decline Most Since 2009)

Yes, markets today are like a ride on Mrs. Toad’s Wild Ride (title and picture courtesy of Arthur Cutten at Jesse’s Cafe Americain). The Dow Jones Industrial Average lost 530 points over the last 24 hours. The US Treasury 10Y yield dropped 8.5 basis points. Even though energy prices rose slightly this morning, retail sales […]

I Want Zandi! U.S. Job Openings Show `Red Hot’ Labor Market (But Will It Translate Into Higher Income and Wage Growth?)

The JOLTS Job Openings numbers showed that job openings are now higher than in the last decade. Media economists like Chris Rupkey and Mark Zandi are heralding in a big recovery in the US economy for 2015. BUT, will the fabulous JOLTS report translate into higher real median household income and average wage growth

US Economy Is In Negative Equity Territory … And Getting Worse! (5.1 Million Properties In Negative Equity Territory)

Negative equity in housing refers to the value of a property less the amount owed on the mortgage. According to CoreLogic, 5.1 million properties remain in negative equity in Q3 2014. While the negative equity problem in housing is getting better, this is another type of negative equity that is getting worse … the difference […]

Fed’s Journey To Bizarro World! US Rig Count Crashes At Fastest Pace Since 2009 As Crude Oil Continues To Decline

As Justin Lahart of the Wall Street Journal writes, this is The Fed’s journey to bizarro world. Even as consumers cashed in on lower gasoline prices and hiring strength, economists held that the economy slowed markedly in the fourth quarter. It’s a position that no longer seems tenable. US rotary oil rigs are crashing at […]

No Joy In Mudville: Wage Growth Falls To 1.7% YoY, Labor Force Participation Falls To 62.7%

The media trumpeted today’s jobs reports with headlines like “December Employment Gain Caps Best Year for U.S. Since 1999.” The addition of 252,000 jobs followed a 353,000 rise the prior month that was more than previously estimated, a Labor Department report showed today in Washington. The jobless rate dropped to the lowest level since June […]

Dazed and Confused: Fed Unlikely to Raise Rates Before April (Even Though Taylor Rule Suggests Hiking Fed Funds Rate to 2.32%)

According to The Federal Reserve Open Market Committee (FOMC) minutes, The Fed is unlikely to raise rates before April. This is somewhat puzzling since The Taylor Rules suggest hiking The Fed Funds Target rate to 2.32%. Continued Fed Funds target rate of 0.25% coupled with declining long-term Treasury yields have produced continued low mortgage rates. […]