Macroliquidity Monthly

Analysis of the major forces of macro liquidity that drive markets for monthly subscribers. Click here to subscribe. Subscribers, click the post headline to access reports.

Capital Flees Europe to US Markets and Banks

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.

Macroliquidity Growth Accelerates, Lifting Stock Prices and Market Sentiment

Macroliquidity rests just below the highs set a few weeks ago as the Fed is in the usual hiatus between its regular monthly MBS settlements that occur around mid month. The markets have fended quite well thank you without the Fed’s help and must continue to do so until mid April. Since the middle of…

Waiting For The Other Made-In-China Shoe To Drop

Macroliquidity continues to rise at a slow pace, mostly on the strength of the Fed’s regular mid month settlements of MBS purchases. The trend is still slightly positive, but slow money growth is effectively tight money in a system excessively burdened with free interest carry trades. Under the circumstances, concurrent rallies in stocks and bonds…

New Fed QE–Quantitative Expropriation–and NIRPitrage Drive US Bull Stampedes

Europe Bank Deposits, ECB Assets and Deposits, and US Treasuries- Click to enlarge

This explication of quantitative expropriation is excerpted from the semiweekly examination of Fed balance sheet manipulation and banking system elevation, part of the Pro Trader Macroliquidity services. While US bank loan and deposit growth continues to go bonkers at annual growth rates of more than 8% for loans and around 6% for deposits, loan and…