Instability in the multi-trillion repurchase agreement marketplace generates intense interest. This crucial market for funding levered securities holdings is critical to the financial system’s “plumbing.”
Of the crowd piling into bond ETFs, how many are unaware of how quickly money can be lost in “safe” bonds?
There is this dreadful feeling that things are advancing toward some type of cataclysm.
The first “Bomb” hit at 8:02 am eastern.
China is now only a faltering apartment Bubble away from a period of major economic upheaval and acute financial instability. It’s just one problem for financial markets worldwide. Doug’s overview of the week in world bubble finance is its usual tour de force.
Global markets were shocked Beijing would interject the renminbi into tit-for-tat trade retaliation. Trade war morphing into currency war?
Powell had to attempt a modest reset of market expectations. This wasn’t going to be uneventful. Then Trump made it worse.
Markets will not be overjoyed if the Fed attempts walking back its “an ounce of prevention…”
Economic “research” about the zero lower bound is a crock…
Record stock prices don’t matter. Booming corporate Credit is no issue. June’s big gain in payrolls and a 3.7% unemployment rate are not part of the decision function.