Fed QE $2.000B TIPS Purchase 2020-05-04 NYFed treasury securities operations
Fed QE $1.945B Coupon Purchase 2020-05-04
A somewhat simplified, but nonetheless telling heat map of financial strengths and vulnerabilities across emerging market/middle income economies via the Economist:I have outlined European economies included (for some strange reason, the Baltics are no…
The speed and the depth of jobs destruction in the U.S. during the last two months has been beyond precedent.
The Federal deficit hit $1 trillion in April. That’s a cool 1,500% increase year to year. That’s for one month. Here are the current horrible numbers, along with the immediate outlook, and what it means for stocks and bonds.
We are now one week away from the unemployment claims filed in March-May 2020 exceeding the grand total of all jobs destroyed during all U.S. recessions between 1945 and 2019.
A violent rejection in markets following a furious rally that began on March 23.
At its roots, QE is a mechanism of wealth redistribution. Zero rates transfer wealth from savers to borrowers and speculators.
Moreover, there are myriad costs associated with central banks nullifying the business cycle.
Thinking their economy was sufficiently robust to overcome a non-economic factor, the tax hike, they instead were forced into making excuses throughout Q4 2019 as to why it instead seemed to collapse so easily.
This isn’t 1930-33 levels but it is beginning to look like the same kind of thing, a serious fracture in the economic system which extends beyond the first order effect of the COVID-19 shutdowns.