For the first time in three years, oil inventories in the United States are not rising precipitously more than the seasonally expected. At the start of both 2015 and 2016, oil stocks exploded higher as oil prices crashed, all related to the “dollar” flex on the front end of the futures curve creating sufficient contango necessary to strip that oil [...]
The only unequivocally positive aspect to the looming “stimulus” debate is the immense political theater it will generate, and has already generated. Hypocrisy will be standard fare, and in any number of ways. For every Occupy Wall Street Obama supporter who found himself likely for the first time in his life enthusiastically embracing “record high stocks” in 2013 will now [...]
It has been out of hand for some time, but the longer it goes the further from sense it can get. Today’s news is apparently about a bipartisan effort for $1 trillion in “stimulus”, as if the last $1 trillion in “stimulus” had never happened. Apparently eight years is enough for memories to have been expunged, or as if IRS [...]
The use of weather as an economic excuse, obviously, is meant as a way of avoiding uncomfortable questions and factors. The incongruence of the attempt was most egregious in what came to be known as the Polar Vortex of Q1 2014. The weather was unusually cold, to be sure, but that doesn’t account for why so many economic statistics suddenly [...]
From the outside, it appears as if Wall Street operates like a bureaucracy. There is an enormous amount of paperwork, endless committees who conduct endless meetings, and layers of management supposedly managing the movement of that paperwork as well as the meetings of those committees. The idea is simple enough, to make it appear as if there is tremendous weight [...]
As with all innovation, the roots of any specific trend usually cast back a very long time. In terms of Enterprise computing solutions, Software as a Service (SaaS) dates to the earliest days of the internet. In the middle 1990’s Application Service Providers started popping up, but they were largely erased in the dot-com bust (not without good reason). For [...]
Jose Manuel Barroso was the former Prime Minister of Portugal who became the 11th President of the European Commission. Never one to be shy about sharing his opinions, in June 2012 at the G20 summit in Mexico he declared, “this crisis was originated in North America and many of our financial sector was contaminated by, how can I put it, [...]
For Ben Bernanke, characterizing a successful tenure is exceedingly hard. Afterward writing a memoir about his time at the Fed, however, made such a task a necessary one. Given so few options from which to define his legacy, the former Chairman decided very carefully about how to frame his efforts. And still all he could come up with was a [...]
If you are an enterprising financial firm with spare cash toward the end of the business day, you have several options for it. Primary among them is the Fed’s Reverse Repo (RRP) desk which will pay you 50 bps interest with your cash secured by both the reputation of the Federal Reserve as well as UST collateral. Given that option, [...]
Nowhere is the “dollar’s” effects more damaging than in any real economy dependent upon it. It is quite fitting that on a day when the PBOC surprises with a desperate move to reduce the RRR for big banks, who have already been for some time the outlet for massive RMB liquidity, Chinese officials release economic statistics that show little or [...]
Stay In Touch