Nasty Number Four: Repo Chaos, TAF Makes A Comeback, and EFF Shows Us How Inept Officials Really Are
US money markets are in a state of visible disarray. When repo is front page news that can’t be good.
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.
Finally, finally the global bond market stopped going in a straight line. I write often how nothing ever does, but for almost three-quarters of a year the guts of the financial system seemed highly motivated to prove me wrong. Yields plummeted and eurodollar futures prices soared. It is only over the past few weeks that […]
Normalization is dead. And that, ladies and gentlemen, is all she wrote. A little bit of Fed POMO won’t be enough to save the bond market, or stocks for that matter.
We are filled with sadness watching members of the Sell Side trying to concoct a rationale for going long banks stocks in front of Q3 earnings.
Officials in China seem to be taking a page out of Mario Draghi’s playbook. Before Europe was pushed to the bring of recession, the President of Europe’s central bank would downplay any weakness in the European economy. In 2018 especially, Draghi frequently referred to 2017 as if it was something special. No cause for concern, […]
Please read this paragraph carefully: “Since last year real GDP growth has been slowing. The chair of the Federal Reserve has been signaling that, while growth is slowing, there is no recession […]
Pundits are calling yesterday’s drone strke a “black swan.” Can a drone strike on a Saudi oil facility, be a “black swan.” But is it? And are there really black swans?
The heat is on the gold sector, causing the metal to soften, and the miners to dig a deeper hole. Subscribers, click here to download…
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.