Just a quick update to add a little more data and color to my last Friday’s swap line criticism so hopefully you can better see how there is intentional activity behind them. Since a few people have asked, I’ll break them out with a little more detail. While the volume of swaps outstanding at the Fed has, in total, remained [...]
Here they are again, seemingly at odds over how to proceed. Reminiscent of prior battles over whether to revive the economy or just let it go where it will, it appears as if China is in for Xi vs. Li Round 2. Or is it all just clever politics?Li Keqiang may be nominally the Chinese Premier but he’s a very [...]
iTunes: https://apple.co/3czMcWN Spotify: https://spoti.fi/3arP8mY Google: https://bit.ly/3e2Z48M Castro: https://bit.ly/30DMYza Stitcher: https://bit.ly/2C1M1GB Overcast: https://bit.ly/2YyDsLa Pocketcast: https://pca.st/encarkdt Alhambra-tube: https://youtu.be/a3_txb_PhrM Twitter: https://twitter.com/JeffSnider_AIP Twitter: https://twitter.com/EmilKalinowski Art: https://davidparkins.com/ [Emil's Summary] American books and films published in 1925 will be entering the public domain next year. Included among them will be The Great Gatsby by F. Scott Fitzgerald. Upon its release the book was met with popular indifference. And [...]
In its earliest years, the Discount Window wasn’t something to be avoided at all costs, it was nearly the whole point. In order to supply largely seasonal liquidity, the word “discount” meant banks could show up at one of the local 12 Fed branches and post collateral for an increase in their reserve balance. No one would be stuck holding [...]
What was stupidest about the past few months was how it was these guys who everyone was depending upon to make it all go just perfectly moving forward. Worse, those geniuses being held up as competent economic stewards practically reran the 2008 playbook line by line. What that said, more than anything, was that they had come up with zero [...]
Have we entered a new bull market? Was the 35% pullback in the S&P 500 in March the fastest bear market in history? Or is this just a continuation of the bull market that started in 2009, interrupted by a rather large correction? Bull markets and bear markets are about behavior, about the human emotions of fear and greed. While [...]
The job, as Jay Powell currently sees it, means building up the S&P 500 as sky high as it can go. The FOMC used to pay lip service to valuations, but now everything is different. He’ll signal to all those fund managers by QE raising bank reserves, leading them on in what they all want to believe is “money printing” [...]
The Federal Reserve’s models really are the most optimistic of the bunch. With the policy meeting conducted today, no surprises as far as policies go, we now know what ferbus has to say about everything that’s happened this year. Skipping the usual March projections, what with the FOMC totally occupied at the time by a complete global monetary meltdown Jay [...]
According to Mexico’s Instituto Nacional de Estadística y Geografía (INEGI), the production of light automobiles rebounded in May 2020. Up more than 494% from April, the country managed to piece together 22 thousand units last month. And that was still 93.7% fewer than had been assembled during May 2019.Auto production had been down almost 99%, so the rebound to -93.7% [...]
Around the same time Lehman Brothers and AIG became headline news in the middle of September 2008, none of the mainstream econometric models thought it was possible for the US economy to suffer so severe a shock that it would induce monetary policymakers to unleash ZIRP. Worse, the models all predicted that it would be impossible for anything to force [...]
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