Investors and leveraged speculators took the coronavirus panic straight to the bond market last week. Dealers, bless their little hearts, were long up the wazoo. Talk about smellin like a rose.
But somebody was short. Big somebodies. They’re dead. We don’t know where the bodies are buried yet, but the Fed will need to exhume them and fill the graves.
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 […]
Futures are in crash mode on Brown Pants Syndrome Day 2.
This is a syndicated repost courtesy of theinstitutionalriskanalyst. To view original, click here. Reposted with permission. New York | Is the Federal Reserve Board killing America’s banks,…
The rally in risk-free bonds is quickly rendering irrelevant the policy direction of the Federal Open Market Committee
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.
Some thoughts on the current market situation: Awe-inspiring volatility in markets these days and headlines keep coming non stop. It’s heaven for fans of volatility and action, but it’s also a very […]
We’re looking at a possible Brown Pants Syndrome day.
