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Quick Comments/What We’re Reading
March 28, 2023
Today's topics include BlackRock pushes back on rate cuts, rising rates will eventually hit companies' bottom lines, quantifying shadow debt, economic contagion, countries' dependence on bank loans, the problems with inflation targets, life expectancy & retirement age, and the CFTC sues Binance
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Cartoons
March 28, 2023
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Depositors Are Yield-Seekers
March 27, 2023
The Federal Reserve's H8 report details the assets and liabilities of commercial banks. The latest data shows deposit flight to higher-yielding options continues.
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Quick Comments/What We’re Reading
March 27, 2023
Today's topics include what the market thinks, FDIC finds a buyer for SVB's assets, where did SVB deposits end up?, how much could banking crisis hurt global growth?, the legalese of AT1 bonds, your daily update on the Fed's rate hike path, more on Yellen's flip-flopping, rent vs. own, the cost of government bailouts, and checking in on Russian energy flows
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Cartoons
March 27, 2023
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Quick Comments/What We’re Reading
March 24, 2023
Today's topics include updating the Fed's balance sheet, too big to fail, looking for signs of stress abroad, the Yellen reversal, damned if you do..., how far will Powell go?, rush to cash, the 'big short 3.0', a better future for children? maybe not, and crypto founder arrested & charged
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Cartoons
March 24, 2023
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Did We See the Last Rate Hike?
March 23, 2023
For the first time this hiking cycle, the funds rate has reached the market's expected terminal rate. This suggests the hiking cycle is over. If the Fed is done hiking because they broke something with their aggressive campaign, as they have done in the previous cycles, it is a disastrous time to own stocks.
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Quick Comments/What We’re Reading
March 23, 2023
Today's topics include the Fed's latest projections, understanding Fedspeak, fighting inflation during a banking crisis, the yield curve & recession, 0DTE options boom, evolution of capitalism, Yellen throws cold water on hopes for blanket FDIC guarantees, the legal battle over AT1 bonds, Goldman estimates household demand for stocks, and Coinbase receives Wells notice from SEC
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Cartoons
March 23, 2023
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Quick Comments/What We’re Reading
March 22, 2023
Today's topics include markets still expect a 25 basis point hike today, keep an eye on the summary of economic projections, some perspective on Fed uncertainty, more on bank deposits seeking higher rates, JPMorgan is not overly concerned about treasury liquidity, BofA survey shows money managers' concern over systemic credit event, First Republic suitors might require government assurances, Dudley offers five fixes to banking mess, and existing home prices fall