As I sit here Monday evening with the Dow having closed down 2000 points and the 10-year Treasury yield around 0.5%, the title of this update seems utterly ridiculous.
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.
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.
Nothing is scarier then crashing markets and one can debate whether his here is a crash or not. When I look at the $VIX ($VIX Shock) and some of the asset classes […]
New York | The great sucking sound heard last week was the release of accumulated froth in the global equity markets. The FOMC’s decision to…
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.
Everyone with a pension fund or 401K invested in stocks better hope the Fed becomes the buyer of last resort, and soon. Much has been written about what the Federal Reserve cannot do: it can’t stop the Covid-19 pandemic or reverse the economic dama…
The coronavirus outbreak will eventually pass, though I have serious doubts contemporary finance will pass this test.
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 […]