This post was miscategorized when first published on September 6. I am currently working on the update for September, which will be posted this weekend. There’s no imminent change in the air according to Fed and US banking system indicators, but deposits in Europe fell as the US sucks up capital and cash from the…
Negative interest rate policy (NIRP) elsewhere in the world continues to drive liquidity growth and asset price inflation in US. We saw this trend coming when NIRP was first introduced. Now the question is whether the resulting US asset price inflation was an intended or unintended consequence of foreign central bank policy. Would it even…
The Fed’s balance sheet remains flat but US banking indicators continue to show rapid systemic growth in loans and deposits, and hence, liquidity, as NIRP and waning confidence drive cash out of Europe. This report is part of the Macroliquidity Pro service. An update on macro liquidity indicators will follow later this week.
The Fed’s balance sheet may be flat but US banking indicators show systemic liquidity growing. Capital is flowing out of Europe, fleeing NIRP, and US corporate executives are still funding financial engineering schemes at a breakneck pace.
US macro liquidity grew in June, thanks to the Fed’s purchases of MBS from dealers and to the actions of the ECB and BoJ.
As US banking data continues to exhibit bubble behavior, European banking data reflects a deepening long term crisis of confidence among bankers. These may be harbingers of the endgame for central bank market manipulation.
Macro Liquidity and investor/dealer confidence in the central banks have reached a major inflection point. They are on the cusp of either breaking a yearlong cyclical downturn or rolling over and resuming what could be a secular decline.
Virtually nothing has changed since the last update, other than an uptick in current US GDP for the second quarter. When economic data releases begin to reflect this next month, the market reaction should be negative as traders conclude, correctly, that the Fed will tighten. Markets top out when the news is good, because that is, in fact, when the Fed turns the screws.
This is part of a series of free Wall Street Examiner Pro Trader reports that I have been posting as I recover from my emergency open heart surgery on May 3. This report covers Macro Liquidity indicator trends and what they tell us about the outlook for the US stock and bond markets. If you…
Nothing has changed since the last update. US Bank Deposits and Loans are soaring as capital flees NIRP in Europe.