Comment Yesterday Jim was on CNBC markets and the Federal Reserve. To view the interview click on the image above. To view any of our recent interviews click here. We discussed our Federal Reserve views in depth yesterday. The New York Times – Global Sell-off Shows Fed Reach Beyond the U.S. Despite a partial recovery… Continue reading More On The Federal Reserve
The Federal Reserve of St. Louis – President Bullard’s Comments on Recent FOMC Actions ST. LOUIS – Federal Reserve Bank of St. Louis President James Bullard dissented with the Federal Open Market Committee decision announced on June 19, 2013. In his view, the Committee should have more strongly signaled its willingness to defend its inflation… Continue reading Jim Bullard Dissents, The Economist Disagrees
Reuters – Bernanke suddenly no friend to big bond funds Ben Bernanke, the central bank chief whose massive stimulus program drove bond yields to historical lows and minted a mountain of profit for fixed-income funds along the way, is now the arch nemesis of bond mavens. It doesn’t matter whether it’s a “govvies” guy focused… Continue reading Bond Fund Outflows
Bloomberg.com – Bond Auctions Fail From Russia to Korea as Brazil Protests Rage Developing nations around the world are scaling back or canceling billions of dollars of bond sales as borrowing costs climb the most since 2008, just as spending needs increase amid slowing economic growth. Romania’s Finance Ministry rejected all bids at a seven-year… Continue reading Bond Auctions Struggle
The New York Times – Matthew P. Richardson: Inflating the Bubble, to Serve the Rich The financial crisis and the economic problems that followed had many causes, but at the top of the list must be U.S. government housing policy. No other country subsidizes homeowners like the U.S. does — currently more than $200 billion… Continue reading Bubble Talk
<Click on chart for larger image> Bloomberg.com – Gold Trade Most Bearish Since ’10 as Fed Spurs Drop: Commodities Gold traders are the most bearish in 3 1/2 years after prices fell to the lowest since 2010 following Federal Reserve Chairman Ben S. Bernanke’s comments that the central bank may start curbing stimulus. Fifteen analysts… Continue reading Gold
<Click on chart for larger image> <Click on chart for larger image> Reuters – China’s central bank inflicts pain on banks to rein in credit The Chinese central bank’s determination to rein in rapid credit growth has sent interbank interest rates to record highs, creating panic and rumours of possible default as some banks scramble… Continue reading China’s Liquidity Squeeze
<Click on picture for larger image> 1909 Picture of Workers at the Bureau of Engraving & Printing using hand presses to print currency
<Click on graphic for larger image> The Washington Post – This graph shows how bad the Fed is at predicting the future On Wednesday the Fed issued its latest policy statement and accompanied it, as always, with economic projections. They project the economy will grow by 2.3 to 2.6 percent, in real terms, in the… Continue reading The Federal Reserve’s Economic Projections
Bloomberg.com – Bonds Tumble With Stocks as Gold Drops in Rout on Fed Bonds and stocks fell around the world, with shares in emerging markets sinking the most in 20 months, after the Federal Reserve said it may phase out stimulus and China’s cash crunch worsened. Gold led commodities lower. The 10-year Treasury note yield… Continue reading The Stock/Bond Relationship…Are Rising Yields Very Bad For Stocks?
Comment In all of Bernanke’s comments today, he stressed the difference between raising rates and reducing bond purchases. The Federal Reserve believes reducing bond purchases is not tightening. Many commentators agree with this and conclude the markets are overreacting. Are they? The next chart shows the stock market throughout the different iterations of QE back… Continue reading What Happens To Stocks When The Fed Stops Buying Bonds?
[pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=136″] The Wall Street Journal – Fed Brightens Recovery View as Bernanke Sets Stage to End Bond Buys Federal Reserve officials on Wednesday upgraded their assessment of the economic recovery and Chairman Ben Bernanke said the central bank could begin pulling back its $85 billion-per-month bond-buying program later this year. “Labor market conditions… Continue reading The FOMC Statement