Last week’s unexpected decision by the ECB to set the rate on bank excess reserves to -0.2% is sending liquidity holders scrambling. The idea behind negative rates is to penalize cash position holders. The amount of reserves in the Eurosystem is consta…
I suspect the Alibaba IPO may well prove to be the high water mark of the China Boom Story in more ways than one.
The reasons advanced for voting against Scottish independence by business interest are false. Indeed, the opposite of what they claim is far more likely to be true.
On September 4, the European Central Bank lowered the interest rate on its main refinancing operations by 10 basis points to 0.05%. In addition, the interest rate on its marginal lending facility was reduced by 10 basis points to 0.30% and the interest rate on its deposit facility was reduced by 10 basis points as well to -0.20%.
The media is generating a great deal of noise around the US labor markets and it’s worth going through some key facts, issues and trends. Let’s do it in a Q&A format for clarity.
Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009), which was translated and republished in Chinese (2014). He is research…
A permanently high plateau of stock prices is a marvelous innovation.Somebody said this before, of course, but one glance at a chart of the S&P 500 tells us that stock prices have reached what looks like a permanently high plateau. How can we …
RESERVE YOUR SEATS: On August 26, 2014, for what seems the fiftieth time, the U.S. Court of Federal Claims rejected the U.S. government’s attempt to extinguish Starr International Co. v. United States.
The ECB rolled out the big guns today but stopped short of an all-out quantitative easing. In addition to the TLTRO, there will be ABS and mortgage bond purchases. However these markets are relatively small in Europe – particularly the higher rated paper that would qualify for the ECB purchases.
Markets crash not from “bad news” but from the exhaustion of temporary stability.Yesterday I made the case for a Financial Singularity that will never allow stocks to crash. We can summarize this view as: the market and the economy are n…