The Fed unveiled what was supposed to be shock and awe. Instead, it was the predictable series of upsizing the bazookas, monetary armaments in name only. I’ll write it again: there is no money in monetary policy. Central banks are not central. That was the primary lesson of September’s repo rumble, and not for the […]
Why is anyone surprised Christine Lagarde stepped in it? This is who she is, who she has been her entire career. The woman is a walking disaster, screwing up from one place only to be promoted into the next. Her Argentina debacle was merely the latest – before yesterday. In case you were distracted by […]
Dealers ended up taking in all of $78.4 billion, or about 16% of what was possible.
Rather than being confident about the effectiveness of their programs the central banks just don’t know what else to do. And it’s because they really don’t know what they are doing.
The eurodollar curve’s latest twist exposes what’s behind the long end. To recap: big down day in stocks which, for the first time in a while, wasn’t accompanied by massive buying in longer maturity UST’s. Instead, these were sold, too. Rumors of parity funds liquidating were all over the place, which is consistent with this […]
Can we please dispense with all notions that monetary policy works?
Basic recession economics says that when you end up with too much of some commodity, too much inventory that you can’t otherwise sell, you have to cut the price in order to move it. Discounting is a feature of those times. What about a monetary panic? This might sound weird, but same thing. In other […]
The crash in short and long rates is about the impotence of central bankers. Here’s why it will be long lasting.
It’s about time. I’ve been writing for years that the payroll reports are, mostly, irrelevant. That’s never how they are received, though, some months wherein the new low for the unemployment rate or the blowout headline payroll figure send risk markets soaring. Not this month. Can you imagine what the last couple of reports would […]
Taking another look at what I wrote about repo and the latest developments yesterday, it may be worthwhile to spend some additional time on the “why” as it pertains to so much determined official blindness, an unshakeable devotion to otherwise easily explained lunar events. The short version: monetary authorities as well as the “experts” describe […]