The Economist – Surprise ECB moves: Busy, busy On the face of it this looks like the first step towards quantitative easing (QE) since the ECB will pay for the assets by creating money. But the move sets less of a precedent than it might appear. The two previous programmes of covered-bond purchases, in 2009-10 and… Continue reading More On The ECB Move
Politico – Halfway House: GOP falling short in midterms Tepid fundraising, underperforming candidates and a lousy party brand are threatening to deprive House Republicans of the sweeping 2014 gains that some top party officials have been predicting this year. POLITICO interviewed more than a dozen top strategists from both parties about their outlook for the… Continue reading The Battle For House Seats
The New York Times – Fed Says Growth Lifts the Affluent, Leaving Behind Everyone Else Economic growth since the Great Recession has improved the fortunes of the most affluent Americans even as the incomes and wealth of most American families continue to decline, the Federal Reserve said Thursday. For the most affluent 10 percent of American… Continue reading The Rich Got Richer
Comment Yesterday Jim Bianco was on Bloomberg TV discussing the timing of the first Fed rate hike and the state of the U.S. economy. To view the interview click on the image above. To view any of our recent interviews, click here. In the interview Jim again suggested the Fed will never raise rates, withholding… Continue reading Timing The First Rate Hike
<Click on chart for larger image> Investors.com – Volume Is Key To Gauging Health Of A Stock, Market Volume analysis is key to evaluating a stock’s base and the health of its breakout past a proper buy point. A stock that clears its buy point in light volume is suspect. Bases that show a stock… Continue reading Testing The Theory That Volume Equals Conviction
The Financial Times – European Central Bank cuts rates to a fresh low The European Central Bank has cut interest rates to a record low, in a fresh attempt to counter the threat of economic stagnation across the eurozone. The governing council on Thursday cut its benchmark main refinancing rate from 0.15 per cent to… Continue reading QE In Europe Is Here!
FT Alphaville – Goldman on Abenomics’ moment of reckoning Both the Japanese government and the BOJ outwardly maintain that the realized negative impact of the April tax hike is within the scope of expectations. But with the authorities’ more optimistic scenario failing to play out, they are likely inwardly rattled. The government is due to… Continue reading Abenomics
<Click on chart for larger image> The Financial Times – Negative Bund yields highlight Europe’s ‘chronic problem’ Happy to lend money to the German government? If so, you will have to pay for the privilege – at least if you are investing in short-term debt. The recent move to negative yields on the government’s two-year… Continue reading Negative Yields Across Europe
MoneyBeat (WSJ Blog) – Fed Will Consider Adding Municipal Debt as Quality Asset States and localities that raise cash in the $3.7 trillion municipal bond market moved closer to winning a reprieve Wednesday after regulators agreed to consider allowing banks to use certain types of municipal debt to satisfy a new post-crisis financing rule. Banking… Continue reading Should Munis Be Considered High-Quality Liquid Assets In Eyes Of Fed?
ScottSkyrm.com – The Fed’s IOER/Repo Rate Band There are two important statements that came out of the July 2014 FOMC minutes that outlined U.S. monetary policy for the foreseeable future: The IOER rate would be set at the top of the target range for the federal funds rate, and the ON RRP rate would be… Continue reading The Mechanics Behind FOMC Policy
CFA Institute – Multifamily Housing is Booming, and It Doesn’t Look Like a Bubble A secular movement towards multifamily housing led by demographics and changing preferences is a trend going forward. Further aiding this shift in our domestic housing “mix” is the relative looseness in multifamily housing credit availability compared to single-family credit, which remains… Continue reading Breaking Down The Housing Market