Wall Street Examiner Exclusives

Wall Street Examiner exclusives

Buying Panic in Treasuries? Nope. Just Way Too Little Supply and Way Too Much Cash

Thanks to Professor Anthony Sanders for the kind mention in his post about the US Treasury Kabuki Theater. This is part of a bigger issue that is crucial to our understanding of markets. I have been covering it in depth every week for the past 13 years. I jotted down a few thoughts in response to Professor Sanders’s post and a…

Unemployment Claims Still Sailing Along At Record Lows, Withholding Taxes Down Slightly in Q3

Initial Claims and Annual Rate of Change

Employers continue to ignore the signals sent by the recent stock market fracture. They are still hoarding their low cost labor forces at a record rate, exceeding that of any past bubble in history. First time claims for unemployment compensation continued their string of record lows for the same week of the year. The actual number, not subject…

We Have Come To Bury Debt, Not To Praise It

The Fed’s balance sheet went through the normal mid month fluctuations last week as MBS are paid down early in the month and then are replenished at mid month. There has been essentially no change in the total size of the balance sheet since QE officially ended a year ago. And there will be no material change going forward until the Fed either decides to start shedding assets (not gonna do it) or until it restarts QE (somewhat more probable than shrinking the balance sheet).

When Central Banker Economic Delusions Become Everyone Else’s Living Nightmare

The Composite Liquidity Indicator has been inching sideways after hitting a new high during the August 26 week. More importantly, the slope of the line has been nearly flat since January. In this game, if liquidity isn’t growing, that’s tight. Governments are always borrowing more, so if the system isn’t providing new cash to absorb that debt, the cash to pay for the new debt needs to come from somewhere else. That spells liquidation.

Here’s Why the Facts Underpinning Bullish New Home Sales Headlines Aren’t So Bullish

Thanks Fed for Helping The Average Guy

Yesterday’s new home sales report from the Census Bureau triggered an ebullient response. Big media used words like “surge; soar; rise sharply; above expectations” to describe it. The Wall Street Journal said, “Sales of new, single-family homes rose by 5.7% to a seasonally adjusted annual rate of 552,000.” The headline number they reported reflected the monthly seasonal adjustment and…

Tone Deaf Employers Continue To Ignore Warnings in Job Hoarding Bubble

Initial Claims and Stock Prices

First time claims for unemployment compensation continued their string of record lows for the same week of the year. The actual number, not subject to any seasonal hocus pocus was 220,000 (rounded). That was just 1,548 claims per million employed workers last week. That compares with 1,817 per million in the same week of 2007 just as the housing…

Accounting For The Fed’s Liabilities As Fed Funds Market Disappears

Fed Liabilities Week Ended September 16

Where else can we review the weekly balance sheet changes of a major corporation, bank, or other financial institution weekly? The Fed provides the means for us to look at its balance sheet every week and actually follow the flows of funds as they move from the Fed to the Federal Government to the banks and vice versa.