Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
Bubbles always burst, and the confidence that “this isn’t a bubble” and “the Fed has our back” are counter-indicators.Here we go again: stocks have once again reached nosebleed valuations completely disconnected from reality–in other words a repeat of…
There is no way authorities can limit the coronavirus and restore global growth and debt expansion to December 2019 levels.Authorities around the world are between a rock and a hard place: they need policies that both limit the spread of the coron…
Nasdaq green for the year. What crisis? The Fed’s got this. Only took $2 trillion in balance sheet expansion in four weeks and all is well again. Non. Sense. Indeed I can […]
Crazy, Dangerous Things have taken root in policy circles. Traditional norms are being tossed on the compost heap. Deficits don’t matter; the size of central bank balance sheets doesn’t matter; what central banks purchase doesn’t matter; money doesn’t matter.
On March 2, the Bank of Japan leapt into the stock market, Haruhiko Kuroda burnishing his Superman cape as he flew in to rescue the Nikkei. Purchasing a record amount of ETF’s that day, shares in Tokyo surged. It was a clear message, or so everyone thought. Don’t fight the Fed nor the Bank of […]
The New York Fed today released a set of Frequently Asked Questions to address programmatic inquiries about the Primary Market and Secondary Market Corporate Credit Facilities.
Questioning the veracity of Chinese estimates (for anything) has always been something of an amateur sport. For a stat like real GDP, everyone “knows” that it is managed. In a complex world where an economic system for a billion and a half is incomprehensibly unpredictable, there’s really no other way to always hit your government’s […]
If you have any doubt that the Fed and Wall Street will some day be dismantled, please re-read this “real life in America” list again.The pandemic is a stark, brutal spotlight on income/wealth inequality in America: while the top 10% who own the m…
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.