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The Federal Reserve Hints At Keeping Rates Low For Longer
February 19, 2015
Comment Jim Bianco was on CNBC yesterday discussing the Federal Reserve. To view the interview, click on the image above. To view any of our recent interviews, click here. How did the market view the minutes? The chart below shows the September fed funds futures contract. It shows the price of the contract (100 –… Continue reading The Federal Reserve Hints At Keeping Rates Low For Longer
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How US QE Affects Market Returns
February 19, 2015
Seeking Alpha – QE Never Left Us: The U.S. Economy And Stocks Will Grow Faster And Higher – QE is still with us. It will help propel the U.S. economy and U.S. stocks forward in 2015. – Massive stocks of liquidity accumulated during the QE era will increasingly be deployed toward purchases of goods as… Continue reading How US QE Affects Market Returns
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Why Germany And The Rest Of Europe Needs Greece To Survive
February 19, 2015
The Telegraph – ECB risks crippling political damage if Greece forced to default If Greece defaulted, the German people would discover instantly that a large sum of money committed without their knowledge and without a vote in the Bundestag had vanished The political detonating pin for Greek contagion in Europe is an obscure mechanism used… Continue reading Why Germany And The Rest Of Europe Needs Greece To Survive
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Greece
February 19, 2015
The Wall Street Journal – Greece Submits Request for Bailout Extension Greece and its eurozone creditors still have work to do to bridge differences over the terms of extending its bailout program, eurozone officials said after Athens submitted its request to extend the €240 billion ($273 billion) bailout on Thursday morning. Jeroen Dijsselbloem, the Dutch… Continue reading Greece
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How Central Banks Lost Control
February 19, 2015
The Telegraph (UK) –How central banks have lost control of the world From engaging in ‘competitive easing’ to provoking international currency wars, have we finally reached the limit of what monetary policy can achieve? The world’s oldest central bank has ventured into uncharted territory. Last week, Sweden’s Riksbank slashed its main policy rate into negative… Continue reading How Central Banks Lost Control
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Don’t Panic About Negative Rates Yet
February 19, 2015
The Financial Times – A wary investor’s guide to negative yields ‘Don’t panic, yet,’ markets are continuing to function “Don’t panic” was written on the cover of Douglas Adams’ Hitchhiker’s Guide To The Galaxy. It was a joke meant to emphasise the wackiness of his sci-fi world. But what would be inscribed on a guide… Continue reading Don’t Panic About Negative Rates Yet
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Subprime Loans Are On The Rise
February 19, 2015
The Wall Street Journal – Lenders Step Up Financing to Subprime Borrowers Loans to consumers with low credit scores have reached the highest level since the start of the financial crisis, driven by a boom in car lending and a new crop of companies extending credit. Almost four of every 10 loans for autos, credit… Continue reading Subprime Loans Are On The Rise
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Currency Wars And The Federal Reserve
February 19, 2015
Bloomberg Business – Did the Fed Just Enter the Currency Wars? The minutes from the Federal Reserve’s meeting last month have foreign-exchange traders wondering whether Janet Yellen has joined the currency wars. Policy makers pointed to the dollar’s rising value as “a persistent source of restraint” on exports in a surprisingly dovish set of minutes… Continue reading Currency Wars And The Federal Reserve
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Risks To Economic Growth According To The White House
February 19, 2015
The Financial Times – White House identifies risks to growth outlook The strengthening outlook, however, is clouded by longer-term problems including inadequate wage growth, “skewed income distribution” and bigger declines in workforce participation rates than in other large countries, the council warned. During the past 65 years middle-class incomes have gone from doubling once in… Continue reading Risks To Economic Growth According To The White House
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Cartoons
February 19, 2015
Charts of the Week
Charts of the Week
February 18, 2015
Charts of the Week Topics Covered This Week Include: Timing The First Rate Hike Greece Rejects An Earnings Update An Earnings Update – 2 An Earnings Update – 3 Revenue Estimates Company Guidance Bond Sentiment Bond Sentiment – 2 Surprise Indices Turn South Initial And Continuing Claims Transporting Crude By Rail An Updated Look At… Continue reading Charts of the Week