A couple of minor technical problems called “business” and “life” have now intruded on my increasingly bogged down publication schedule that, in the interest...
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Posts Tagged ‘ Balance Sheet ’
Just the Facts M’am, Just the Facts- A Brief Liquidity Summary
A couple of minor technical problems called “business” and “life” have now intruded on my increasingly bogged down publication schedule that, in the interest of getting caught up, I’m presenting a condensed version of the Fed Report tonight. It includes just the main components of the macro liquidity indicator (which I suspect is probably...
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The Facebook IPO Facts: The Good, The Bad and The Ugly
Face it, you want it. It seems that everyone wants a piece of the Facebook IPO.
But, can you handle the truth? Will the hyped sensationalism be a boon or a boondoggle?
I'm not going to tell you what to do, whether you should buy Facebook sooner...
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That Which is Unsustainable Will Go Away: Medicare
Medicare is an example of an unsustainable system that will go away in the decade ahead.
Here are the sobering facts about the number of workers and those drawing Social Security, Medicare and Medicaid entitlements in the U.S. While the g...
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A Crazy Idea That Might Just Work: Greece’s New Currency, the U.S. Dollar
There is an undeniable internal logic to the crazy idea that Greece should jettison the euro and accept the U.S. dollar as its national currency.
Before you dismiss my crazy idea out of hand, hear me out. It might not be as crazy as it se...
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RBS Posts Wider Net Loss As It Shrinks Balance Sheet – Wall Street Journal
AFPRBS Posts Wider Net Loss As It Shrinks Balance SheetWall Street JournalLONDON (Dow Jones)--Royal Bank of Scotland Group PLC (RBS) Friday hailed the progress it has made in its target of shrinking its way back to profitability and once again becoming...
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Where’s the Collateral?
A sound system of credit is built on collateral. A doomed system of debt sits precariously on phantom collateral.
The global "recovery" is based not on reducing debt but on increasing it. Nice, but where's the collateral? The basic idea of de...
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Bad Neighbor Banks: Homes toxic for neighbors, good for lenders – South Florida Sun-Sentinel.com
I have long made the argument that shadow inventory is a bogeyman which, like shadow boxing, won’t hurt anyone, or at least won’t hurt the housing market in most areas, more than it already has. In effect it’s a sunk cost heavily affecting particular local markets, but will not affect the majority of the...
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Mind Blowing Economic Charts – First Time Claims, The Stock Market, and The Fed
Improvement in first time unemployment claims is slowing. Actual, not seasonally manipulated data, including an adjustment for the usual weekly upward revision, shows that the year to year rate of change is on the cusp of a possible upside breakout, which would be good news for stock market bears if it happens. Here’s why...
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Is Exim going to flop?
America’s Export-Import Bank (Exim) is tapped out. Its authority runs out on May 31 and Congress has to agree to some form of extension. Exim has $100 billion of borrowing authority, none of which shows up on the federal balance sheet. It may have al...
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The Fed’s Painted into a Corner, With a Risky and Long Duration Portfolio
Two minute Radio Free Wall Street clip. Although the Fed’s Bullard is largely irrelevant as a voting member of the Fed, what he says is not. He said the central bank is on pause, and more stimulus is not currently warranted. On the balance sheet, Bullard commented that the Fed has taken substantial risks and he...
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Markets Now On Their Own, Almost, But Major Top At Least 6 Months Away
The cash generated by the ECB’s second big LTRO operation has now settled in to wherever its holders wanted to park it so we’re entering a whole new world where the ECB sits on its hands, and the Fed keeps its balance sheet stable. The overwhelming force that the central banks had been applying...
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How To Cripple the Real Estate Market in Five Easy Steps
Central Planning has crippled the real estate market to "save" their core constituency, the banks.
If you were head of Central Planning (howdy, Ben!) and were tasked with crippling the real estate market, here's what you would recommend.
1. C...
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Dis and Dat
.Self-Serving Accounting
There’s been an ongoing row about changes in lease accounting. Big players in the leasing industry (think GE) have been fighting the changes tooth-and-nail. This article had some interesting data on the consequences of the n...
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Will the Fed Bring Clarity or Confusion?
Next Wednesday, between 12:30 and 2PM, we will get a ton of new information to digest and analyze. The Federal Reserve will make a series of statements while unveiling its new communication effort. A portion of the new information will be contain...
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You Can’t Fool Mother Nature For Long: The Substitution of Debt for Productivity
The "big story" of the U.S. economy is that we have substituted expansion of debt for meaningful increases in productivity.
For the past 30 years, the U.S. economy has become increasingly dependent on explosive debt expansion for its "growth" rath...
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Fed Transparent Only If The “Facts” Are Bullish
Liquidity indications have remained neutral over the two weeks since I last updated this report. Panic outflows from Europe boosting theUSsystem seem to have taken a breather, or been covered up, in the wake of the massive ECB liquidity operation just before Christmas. However, other indicators which had been bearish such as bank purchases...
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The Next Head of the SNB – Thomas J. Jordan
Mr. Jordan is my guess as the next head of the Swiss National Bank. He’s been at the SNB since 1997. He moved up from the economics department and is now the Vice Chairman.
Mr. J is well qualified. This link to his CV shows that he is an academic at...
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How Banks Are Using Your Money to Create the Next Crash
In 2008, reckless credit default swaps nearly obliterated the global economy. Now comes the next crisis - rehypothecated assets.
It's a complicated, fancy term in the global banking complex. Yet it's one you need to know.
And if you understand it, you will...
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Fed Finally Settles First Round Of MBS Offsetting Other Negatives in Liquidity
Liquidity indications were neutral this week, thanks to ongoing panic inflows of cash from Europe, as well as the fact that the Fed finally started settling the MBS purchase commitments that have been building up, but had gone unsettled since October. These positive flows offset the negatives of bank and FCB selling of Treasuries....
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For Central Bank Balance Sheet Wonks- Assets Must Equal Liabilities + Capital
The judgment that such and such a policy was the right choice in current exceptional
circumstances should not make us complacent about possible medium-term risks arising
from such a significant shift in the size and composition of central bank balanc...
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Part 2: Hyper-Hypothecation Madness
Wednesday, December 14, 2011
Part 2: Hyper-Hypothecation Madness
"A prime broker need not even require that an investor sign all agreements with a European subsidiary to take advantage of the re-hypothecation loophole. As a result of these peripheral...
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If Being Totally, Disastrously Wrong Were a Virtue, Bernanke and His Fed Mates Should Be Sainted
Ben Bernanke and his Fed mates' secret letterhead: "destroying capitalism from within."After four years of disastrously wrong policies, let's declare stubborn, hubris-soaked wrongheadedness a virtue and saint Ben Bernanke and his Federal Reserve mates....
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Journalists Jumping To Conclusions Can Get Contusions
Pedro da Costa, maybe the smartest and best reporter covering the Fed, and who seems like a good guy, has a blog post out today suggesting that the $50 billion ECB dollar lending operation today will cause the Fed’s balance sheet to expand. He’s piggy backing on Mike Derby’s column in the Wall Street...
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Portugal raids public pension fund, joining Ireland & Hungary..
UK Telegraph
Excerpt:
The cabinet agreed to transfer the assets from four of Portugal’s biggest banks to the state balance sheet.
The assets will be used to bridge a gap needed to meet the fiscal deficit target of 5.9pc of GDP set by the terms of...
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How The GOP Became the Party of the Rich
The nation is still recovering from a crushing recession that sent unemployment hovering above nine percent for two straight years. The president, mindful of soaring deficits, is pushing bold action to shore up the nation's balance sheet. Cloaking h...
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Wake up! U.S. Looking Even Worse Than Japan
With 10-year Treasuries sub 2%, and growth restagnating, more and more people are buying into the "US is Japan" scenario. And it's not just that the numbers look similar conomically.
The same thing has ailed both countries: a multi-year project to pa...
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Goldman: Wake Up! We Just Got QE3!
Very important point from Goldman's Dominic Wilson on yesterday's "Twist" announcement. Essentially he argues that the part of the operation where the Fed is going to sell $400 billion of short-dated bonds is irrelevant. Only the buying part really ...
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SPX and VIX Updates: Bears Running Out of Real Estate
Yesterday, the Fed announced that it will continue to keep interest rates low "until late 2014 or until we all get fired, whichever comes first." The market immediately rallied, as hopeful investors cheered the news that the Fed&nb...
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