Bloomberg Business – Greenspan Worries That ‘Crazies’ Will Undermine the U.S. System Former Federal Reserve Chairman Alan Greenspan voiced concern that the U.S. economic and political system could be undermined by what he called “crazies.” “It is the worst economic and political environment that I’ve ever been remotely related to,” Greenspan, 90, told a conference in Washington… Continue reading Greenspan Talks Politics
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Charts of the Week Topics Covered This Week Include: QE And The Markets QE And The Markets – 2 Is LIBOR’s Rise Starting To Hurt? No Hike In September The Market’s Track Record In Predicting The Fed No Fed Hike Next Week Inflation Expectations Bailing Out Of Hedge Funds Negative Swiss Rates Big Trouble In… Continue reading Charts of the Week
The Financial Times – Investors on edge as quantitative easing comes under scrutiny Bond and equity markets face a testing week with key decisions coming from the Fed and BoJ Investors can at least stop worrying about when the summer calm will end. Sharp moves higher in bond yields from Japan to Germany last week have spilled… Continue reading QE And The Markets
<Click on graphic for larger image> Bloomberg Business – Liz McCormick: There’s a $300 Billion Exodus From Money Markets Ahead With a seismic overhaul of the $2.6 trillion money-market industry weeks away from kicking in, money managers are bracing for a last-minute exodus of as much as $300 billion from funds in regulators’ cross hairs. Prime funds,… Continue reading The Transformation Of The Money Market Industry
<Click on chart for larger image> Bloomberg.com – Want to Know How Trump’s Doing? Just Look at Mexico’s Peso Currency has moved inversely with Trump electoral probability Peso reaches 2 1/2-month low as Clinton suffers from pneumonia If you want to know how Donald Trump is doing, all you need to do is check the Mexican… Continue reading Trump And The Peso
<Click on graphic for larger image> The Financial Times – Martin Wolf: Monetary policy in a low-rate world Premature rises in interest rates might trigger a sharper slowdown than people expect Central banks are, as Mohamed El-Erian has written, “the only game in town”. They are certainly the main players of the game of macroeconomic stabilisation.… Continue reading Monetary Policy And Low Rates
<Click on graphic for larger image> Bloomberg Business – Two Percent ‘Makes Sense’ as Central Banks Fight Low Inflation Central banks’ mandates may not have to change, but more flexibility is needed in interpreting them. That’s the conclusion of a panel in Vienna on whether a 2 percent inflation target is still appropriate after years of… Continue reading Central Bank Policy And Inflation
<Click on chart for larger image> Barron’s – Is Higher Volatility With Us for a While? After a 51-day streak of days without the S&P 500 experiencing at least a 1% decline, the market hit a wall on Friday and was down 2.5% on a 40% jump in the volatility index (VIX). It was the worst… Continue reading Volatility Creeps Higher
<Click on graphic for largest image> MarketWatch.com – The Fed continues to play to the whim of Wall Street — here’s why Largely because the stock market is sensitive to higher interest rates, the FOMC does have a degree of control over equity prices, and whether or not they should be playing to the whim… Continue reading Why The Fed Cares About Stock Prices
<Click on chart for larger image> Asian Review – BOJ to explore delving deeper into negative rates The Bank of Japan plans to retain its controversial negative interest rate program as a policy option, making it the centerpiece of its future monetary easing as expansions to asset buying near their effective limit. The central bank has pledged… Continue reading Japan
<Click on graphic for largest image> Bloomberg Business – Fed Deluge of Dots and Discord Leaves Global Markets Disoriented Forward guidance proving less useful at mapping rate hikes To steer investors, the Fed’s main form of forward guidance is the median interest-rate forecast in its dot plot, which it will refresh at the Sept. 20-21 meeting.… Continue reading The Fed’s Dots