A couple of minor technical problems called “business” and “life” have now intruded on my increasingly bogged down publication schedule that, in the interest...
Read More »
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...
Read More »
Facing $72 billion in new Treasury debts settling Monday, and with a little less help than usual from the Fed’s to grease the skids, the market got a haircut on Friday, and could get shave on Monday. These two days will be an interesting preview of a future without POMO aid. After Monday, the...
Read More »
Both stocks and bonds are holding up nicely as the Fed pumps in enough cash to keep things bubbling along in spite of the fact that banks and foreign central banks (FCBs) are not helping. That is because the Treasury is helping with very light supply and even some paydowns scheduled through early May....
Read More »
Inflation is deceitful and ineffective. It swindles savers, fleeces lenders, pumps taxes higher and triggers malinvestment. It doesn’t reduce unemployment; it whittles away your wage. Nor does inflation promote exports, but it does make internatio...
Read More »
It’s mind boggling to me, just mind boggling, how nobody gets the simplicity of the pipeline from Ben Bernanke’s twisted brain to his henchmen the Primary Dealers, to the stock market and the economy. When the Fed pumps money into Primary Dealer trading accounts, they manipulate stock prices higher. When stock prices go up,...
Read More »
This is economic vandalism.
QuoteInstead of threatening others, the US should put its own house in order. The Federal Reserve helped cause the mess we are in and is now sowing the seeds for the next crisis. Having wrecked the US economy by encourag...
Read More »
The Fed has bought $45 billion of Treasuries in the first two months of QL1.5, including $7.3 billion last week. It’s been good for 80 points on the S&P 500, 650 on the Dow, and a 35 basis point decline in the 10 year yield. With QL1.5 working as well as it is I...
Read More »
The Fed’s action today is important because it returns to the kind of operations that give the most juice to the stock market. Click here to download complete report in pdf format (Professional Edition Subscribers). If you are a Fed Report subscriber only, click here to download this report.Try the Professional Edition risk free...
Read More »
We have seen for years that when the Fed conducts Primary Dealer pumping operations—let’s stop kidding ourselves by calling them “Open Market Operations”—that the stock market rallies. I was beginning to wonder recently if that stimulus/response relationship still held as the Fed kept pumping but the stock market stalled. This week we got an...
Read More »
Stocks are still going on their merry way as the Fed pumps cash directly into the accounts of the Primary Dealers, another $8.5 billion today, which was a record buy in this pumping campaign. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty...
Read More »
The Treasury finished off a busy week with a 70 day CMB auction that showed no sign of weakening in indirect bidding. That was true for the week as a whole. If the FCBs are backing off, that didn’t show up in this data. Perhaps they did some selling in the secondary market, which...
Read More »
Twitter links powered by Tweet This v1.8.3, a WordPress plugin for Twitter.
Recent Comments