Comment Jim Bianco was on CNBC yesterday discussing the FOMC meeting. To view the interview, click on the image above. To view any of our recent interviews click here. The FOMC did not remove the terms “considerable time” or “significant underutilization” from the statement, so it was more dovish than some expected. Any discussion about… Continue reading Discussing The Federal Reserve
Fortune – Janet Yellen vs. the Inflation Zombies Over the past 15 years, the U.S. has gone through a tech bubble, a housing bubble, and a devastating financial crisis. So why does Fed chair Janet Yellen keep talking about a threat America hasn’t seen in decades? Janet Yellen isn’t the corporate type: She has spent… Continue reading Inflation And The Federal Reserve
The Financial Times – Yield-hungry markets overlook credit risk Three years ago, the US lost its top-tier triple-A credit rating and markets were plunged into turmoil. In 2014, the vast majority of US companies are migrating down the credit ratings spectrum and investors are barely batting an eyelid. Sales of US corporate bonds are increasingly… Continue reading Searching For Yield
The Atlantic – Scotland: The World’s First Referendum on Inequality? Queen Elizabeth II may be considered the world’s largest landowner—but close to home, in Scotland, her 60,000 acres of rolling hillside don’t amount to much. Her Majesty—who reportedly ranks 17th among Scotland’s private landowners—has got nothing on the Duke of Buccleuch, who holds the top… Continue reading The Vote In Scotland
<Click on chart for larger image> Times Dispatch – China, Japan cut back on U.S. Treasury holdings Foreign buyers of U.S. Treasury securities trimmed their holdings in July after hitting a record in June. The two biggest purchasers, China and Japan, both cut back. The Treasury Department said Tuesday in its monthly report that foreign… Continue reading China & Japan Shed Holdings Of U.S. Treasuries
Zero Hedge – Seth Klarman: “We Are Recreating The Markets Of 2007” Exceprted from Seth Klarman’s Baupost letter to investors It’s not hard to reach the conclusion that so many investors feel good not because things are good but because investors have been seduced into feeling good—otherwise known as “the wealth effect.” We really are… Continue reading Seth Klarman Speaks
Business Insider – Chinese Home Prices Have Now Tumbled For 4 Straight Months Worries that China’s economy may be slowing further intensified on Thursday as data showed home prices fell for the fourth straight month, adding to expectations that Beijing will need to do more to stimulate activity. For now, policy easing is likely to… Continue reading Home Prices Continue To Fall In China
Courtesy of @BCAppelbaum. Yes, that is Yellen riding a dove.
Charts of the Week Topics Covered This Week Include: 96% Bearish On Bonds Bond Bearishness Updated Jumbo vs Conforming U.S. Refineries Benefit From WTI/Brent Crude Oil Spread Calpers Is Exiting Hedge Funds Ukraine Still Matters Chinese Economy Continues To Slow The Fed’s New Labor Market Indicator Employment In Pictures An Early Look At Earnings Estimates… Continue reading Charts of the Week
Real Time Economics (WSJ Blog) – Hilsenrath: How the Federal Reserve Could Tweak ‘Considerable Time’ The Federal Reserve may keep the words “considerable time” in its policy statement, but qualify them, the Journal’s chief economics correspondent Jon Hilsenrath said Tuesday in a webcast previewing the central bank’s two-day policy meeting. The Fed’s policy committee has… Continue reading Will The Fed Drop The Phrase “Considerable Time”?
CNBC.com – Wall Street sees Fed hike sooner: CNBC survey Bears and doves are out and the bulls and hawks are in. The CNBC Fed Survey for September, conducted from Thursday through Saturday, ahead of a potentially contentious Fed meeting this week, finds the Street more optimistic on both economic growth and stocks and moving… Continue reading CNBC’s Fed Survey
<Click on chart for larger image> Real Time Economics (WSJ Blog) – Fitch: Fed’s Reverse Repo Gains Are A Negative For Europe Short-term Assets Periodic surges in demand for a Federal Reserve facility designed to control short-term interest rates appear to come at a loss for European markets. Fitch Ratings said in a report Tuesday… Continue reading An Interesting Take On The Fed’s Repo Facility