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.
Force cannot restore legitimacy, trust or confidence, nor can it magically erase the consequences of a still-unfolding national trauma.The Chinese authorities threatening to punish workers who refuse to return to work are getting a lesson in the limits…
Complacency came before the fall. All of 2019 market participants ignored the non existent earnings growth. Too strong was the now pavlovian reflex to chase easy central bank money. Too trusting in […]
The patterns on the charts of T-bills and the 10 year note are unprecedented. Something terrible has happened in the market. The Fed will have…
Manias are accidents in the making. And after an agonizing week, markets crave for emergency central bank stimulus – yet another rash morning shot of the “Hair of the Dog.”
With interest rates tumbling all over the world, gold should be killing it. Instead, gold is getting killed.
It’s really not hard to appreciate why markets are freaking out right now. The economic narrative is, and has been, all wrong. Jay Powell says that faraway overseas pressures had taken just a little off what had been awesome economic growth. Despite what had become an obvious drag on trade and manufacturing, the unemployment rate, […]
First rule of trading: Stay humble and don’t let a big call or trade get to your head. Second rule of trading: Don’t forget rule number one, otherwise the market will remind […]
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.
The WTI futures curve is supposed to be in backwardation, though the word “supposed” is a loaded term. Backwardation is more of an ideal condition than one you might find most often in practice. There’s almost as much contango as backwardation in the futures market’s history. It’s not so easy to balance all the complexities […]