The system that has so enriched the self-serving Davos Crowd is unraveling, and technocratic tweaks, carbon trading and philanthro-capitalism can’t fix what’s broken.Thought experiment: If the Martians teleported the entire Davos Crowd to a d…
The IMF yesterday downgraded its forecasts for global growth as well as its real GDP estimates for all the big economy regions. The organization now thinks GDP growth might have amounted to 2.9% last year. Not only the worst year since 2009, that was down from April 2019 approximations of 3.6% and the original forecasts […]
According to the current market action there is no risk. None. Risk doesn’t exist. Whatever wobbles there may be on occasion it’s all priced in within a few minutes and markets proceed […]
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.
Gold’s consolidation is going according to our expectations, but there are risks. Here are the levels where it getts dice. Meanwhile, we’re still swinging with…
There’s an old adage: There are two guarantees in life: Death and taxes. Let’s modernize this a bit shall we? While it’s true even the rich still die these days (for now), […]
When the Fed pumps $100 billion per month into Primary Dealer trading accounts, we’re not dealing with a level playing field. The Fed has sharply…
None of us can know where markets would be trading without the Fed’s constant massive liquidity injections, but now that the bubble recognition has gone mainstream (Bloomberg, FT) and acknowledged by at […]
Does a liquidity driven momentum market that seemingly does not care about valuations, risk, open gaps and technical extensions face any resistance at all? Are there technical limits for a market that goes […]
It ain’t rocket science. The Fed drives liquidity and stock prices are the first order effect because that’s how monetary policy transmission is designed.