T’was the night before Christmas, when all through the house, EM FX was stirring, and in Russia, there was a rout. The stockings were hung by the chimney with care, In hopes that #SantaYellen soon would be there. The children were nestled all snug in their beds, While visions of US Treasury bonds danced in […]
The drop in oil prices has been a shock to the global financial system. We normally don’t think of a fall in prices as creating shocks, but make no mistake about it this is just as serious as a rise of the same magnitude! This has been a historic month in the oil markets and […]
Dollar surge endangers global debt edifice, warns BIS 12-07-14 Ambrose Evans-Pritchard, FT Bank for International Settlements concerned about underlying health of world economy as dollar loans to emerging markets increase rapidly BIS warned that dollar loans to Chinese banks and companies are rising at annual rate of 47pc and now stand at $1.1 trillion Photo: Oliver Yao […]
Sudden market swings, dollar rise expose emerging market vulnerability: BIS 12-07-14 Reuters Traffic flows in front of the Bank for International Settlements (BIS) in Basel December 5, 2013. Credit: Reuters/Arnd Wiegmann Related News Investment banks lag rivals on profitability, efficiency: study Currency ties key to dollar reserve hegemony: BIS study BIS raises ‘hot money’ concerns about […]
With Q3 Buybacks Surging, These Are The Top 20 Repurchasers Of Their Own Stock 12-08-14 Zero Hedge Back in September, when we looked at the total amount of stock buybacks by S&P 500 companies, we observed that the “Buyback Party Is Over: Stock Repurchases Tumble In The Second Quarter” – according to CapIQ data, after soaring […]
We have major cracks appearing in the $3 Trillion US Dollar Carry Trade which came into existence in 2008 with the Federal Reserve’s aggressive expansion of its’ balance sheet. A $3T US$ CARRY UNDER ATTACK Since 2008, banks, private equity, hedge funds and major speculators couldn’t borrow the almost free money from the Federal Reserve […]
“The four most dangerous words in investing are: ‘this time it’s different.'” Sir John Templeton In early May of 2013, I came across a presentation by David Rosenberg called “Bernanke: The Wizard of Potemkin”. The whole thing is great but there was one slide in particular that caught my eye… Rule #9 is especially interesting; […]
The Monetary malpractice of the central banks, within the developed economies, has distorted the pricing of risk and therefore the process of price discovery. Let’s review the evidence MOUNTING DISTORTIONS The following chart illustrates how the Federal Reserve’s policy of Quantitative Easing (QE) has produced such a distorting market effect that stock prices no longer […]
Let me state at the outset, this is a completely false US stock market and risks have never been higher! However, this doesn’t mean it won’t go higher in the short term. As a matter of fact I expect higher highs in 2015, though the fundamentals won’t support this view. WHAT IS GOING ON? So […]
Deflation vs. Inflation Some people are expecting deflation… …Others are expecting inflation. So who’s right? Not Steve Liesman All of them. Deflation Investopedia defines deflation as “a general decline in prices, often caused by a reduction in the supply of money or credit.” While that’s not occurring everywhere, it is taking place in parts of […]