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.
Central bank free money doesn’t create collateral or creditworthy borrowers, and without those foundations, the decayed, rotted shack will collapse.In terms of consequential trends, the pandemic is not a cause, it’s an accelerant.
India like many emerging market countries around the world holds an enormous stockpile of foreign exchange reserves. According to the latest weekly calculation published by the Reserve Bank of India (RBI), the country’s central bank, that total was a bit less than half a trillion. While it sounds impressive, when the month began the balance […]
Between today and Thursday, the US Treasury will pound the market with $194 billion in net new supply. The total since March 24 will be $283 billion. And it’s only the first week of it. That will have consequences.
Last week’s Fed intervention reminded me of The Charge of the Light Brigade.
Investors shouldn’t get too excited about the rally, says Joe Calhoun.
The Fed injected around $600 billion into the markets and the banking system last week. That’s about $2,000 for every American, and it was just…
We can anticipate a federal bailout of pension funds and one-time aid to state and local governments, but bailouts won’t repair the eroding foundations of tax revenues.As we all know, the federal government can “print” money but state, county and city …
Massive Fed intervention turned the market, although cyclicality was favorable. The 6 month cycle low was overdue. But is it something more than that?
The year is 2020. A new virus is spreading across the planet like a wildfire. More lethal than the flu, highly contagious with no cure. Stocks markets collapse, global economies are shutting […]