Markets

Eurodollar University’s Making Sense; Episode 8: Your Questions

By Jeffrey P. Snider|2020-05-14T11:51:23-04:00May 14th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

iTunes: https://apple.co/3czMcWN Spotify: https://spoti.fi/3arP8mY Google: https://shorturl.at/fpsEJ Alhambra-tube: https://youtu.be/qb_ylacLPMc Twitter: https://twitter.com/JeffSnider_AIP Twitter: https://twitter.com/EmilKalinowski Art: https://davidparkins.com/ [Emil's Summary] On September 21, 1897 the The Sun, a newspaper out of New York, printed an editorial in response to a letter from eight-year old Virginia O'Hanlon. "Yes, Virginia, there is a Santa Claus," came the reply. In that tradition, Making Sense presents episode eight, in which we [...]

Miracles Aren’t Shovel-Ready

By Jeffrey P. Snider|2020-05-13T19:39:50-04:00May 13th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The monetary mouse. After years of Mario Draghi claiming everything under the sun available with the help of QE and the like, Christine Lagarde came in to the job talking a much different approach. Suddenly, chastened, Europe’s central bank needed assistance. So much for “do whatever it takes.”They did it – and it didn’t take.Lagarde’s outreach was simply an act [...]

There Was Never A Need To Translate ‘Weimar’ Into Japanese

By Jeffrey P. Snider|2020-05-13T17:26:47-04:00May 13th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

After years of futility, he was sure of the answer. The Bank of Japan had spent the better part of the roaring nineties fighting against itself as much as the bubble which had burst at the outset of the decade. Letting fiscal authorities rule the day, Japan’s central bank had largely sat back introducing what it said was stimulus in [...]

“Support”

By Jeffrey P. Snider|2020-05-12T19:50:23-04:00May 12th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

They merely repeat the words, as it is intended. With major fanfare and widespread praise, the Federal Reserve weeks ago had announced it was going to buy corporate bonds. Well, not actual bonds but ETFs. It hasn’t bought a single one of those, either, at least not until today and yet the program is being assigned the usual magical properties. [...]

A Big One For The Big “D”

By Jeffrey P. Snider|2020-05-12T18:14:45-04:00May 12th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

From a monetary policy perspective, smooth is what you are aiming for. What central bankers want in this age of expectations management is for a little bit of steady inflation. Why not zero? Because, they decided, policymakers need some margin of error. Since there is no money in monetary policy, it takes time for oblique “stimulus” signals to feed into [...]

It’s What A Total Shutdown Does From Here

By Jeffrey P. Snider|2020-05-11T19:41:14-04:00May 11th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Compared to every other manufacturer, Kia’s production facilities in Mexico were positively booming. According to that country’s Instituto Nacional de Estadística y Geografía (INEGI), last month the Korean carmaker produced 1,907 of its Forte model. Yet, that small amount accounted for more than half of all light vehicles assembled during the month of April 2020.For the whole country.When statistical agencies [...]

Operation sulfatos

By Jeffrey P. Snider|2020-05-11T16:59:09-04:00May 11th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The military phase was an all-out joke. Carlos Castillo Armas had fewer than 500 men as his “invasion” force. Yet, with only that many he had expected to take back the entire country. More surprisingly, he succeeded. Lt. Colonel Armas had previously participated in the 1944 Guatemala uprising that had forced Jorge Ubico from power. As a supporter and close [...]

Eurodollar University’s Making Sense; Episode 7: The Anti-Weimar

By Jeffrey P. Snider|2020-05-11T12:52:39-04:00May 11th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

iTunes: https://apple.co/3czMcWN Google-cast: https://shorturl.at/fpsEJ Spotify: https://spoti.fi/3arP8mY Alhambra-tube: https://youtu.be/S1qjswZdisM Twitter: https://twitter.com/JeffSnider_AIP Twitter: https://twitter.com/EmilKalinowski Art: https://davidparkins.com/ [Emil's Summary] The monetary system is missing of money. Expectation of its return is no longer enough; actual recreation of modern money is needed. That job belongs to the private sector, the banks. It was true of the 1930s, and true of present day.Quantitative easing, [...]

What’s On Second, I Don’t Know Left Third

By Jeffrey P. Snider|2020-05-08T19:19:03-04:00May 8th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Is it really that simple? The central bank hands out “free” money or “supports” markets with purchases, so that’s all there is to it. Once Jay Powell or Christine Lagarde moves in with the big bazookas, who’s not going to climb on board the money train as it rockets out of the inflation station?If only Weimar was that easy. Easy [...]

Serious Bending Of The “V”

By Jeffrey P. Snider|2020-05-08T16:29:46-04:00May 8th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Is it already priced in? Depends, of course, on who you ask and more importantly which market is carrying out the presumed discounting. Stocks surged on the idea that though this is epic in its misery we’re already getting past the worst. Short run disruption, a big one, but nothing more. It’s almost preprogrammed at this point: the data for [...]

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