Tag Archives: Fed
Equity Markets Plummet and Bounce: CNBC Reports a Finger is the Culprit…Q: Index or Middle?
The news cycle is moving almost as fast and furious as the equity markets. I have combined commentary from around the web that I feel best represents the issues we are all facing. Needless to say, the CNBC story suggesting a ‘fat finger’ was the cause of the market chaos we witnessed last week is pure tripe…unless of course they […]
Stalking a Bear or a Windmill? Commodity Prices Surge, Inflation Trade Gains Steam
Is it a bear or a windmill we’re stalking? You may find yourself asking that question as the equity markets drift higher seemingly oblivious to a myriad of negative news. Classic commentary such as “the market climbs a wall of worry” or “the trend is your friend” are being bandied about with increased regularity. Of course, these sayings are useless […]
Fed Discount Rate Increase Exposed, Gold’s Anomalous Strength
A maelstrom of misinterpretation dominates the financial media outlets today in regards to last night’s Fed action. Click here for my audio post on the recent decision by the Fed to increase the discount rate. After listening to the above post, Gary Rosenthal had the following comments on the Fed move: 1) Federal Reserve banks currently have a record high of $1.14 Trillion […]
Sovereign Debt Spreads Widen on Greece/Portugal Worries, Equity/Commodity Markets Roiled, Fed Begins to Backtrack
The equity and commodity markets get rocked as Sovereign debt woes resurface. The burning question: Will the dramatic widening of credit spreads in Sovereign debt, beginning to resemble the CDS collapse of 2008 in the private sector, lead to a revisit of a 2008 type credit crisis and all the fallout associated with it?… Greece, Portugal woes intensify – WSJ […]
SEC Approves New Money Market Regulations; Motives Questionable, ZeroHedge Strengthens Case For Gold
The following is from www.zerohedge.com. This piece is so profound that a reprint is required: The SEC passes regulation that only STRENGTHENS the case to own Gold Suspending Money Market Redemptions Is Now Legal; SEC Approves New Money Market Regulation In 4-1 Vote… …Well, in a nearly unanimous vote, Money Market Funds now have the ability to suspend redemptions, courtesy […]
Q.E. Will Not and Cannot End at This Time, Zero Hedge/Fed’s Bullard, US Mortgage Originations Seen Plummeting
I wrote yesterday: THE FED WILL NOT REDUCE LIQUIDITY AT THIS TIME. Today, I will reiterate and state: QUANTITATIVE EASING WILL NOT AND CANNOT END AT THIS TIME. This statement may appear to be rather bold in light of the noise emanating from traditional news outlets and the occasional Fed comment. However, a review of the facts support the notion […]
FED Will Not Reduce Liquidity, Stock Market Investing, China Theme Continued
That’s it! I’ve had it! Enough! Let’s dispense with the absurd, ludicrous, vacuous debate about “imminent” Fed tightening. The financial airwaves and print are full of this idiotic expectation that the Fed will reduce liquidity soon. Allow me to be clear: THE FED WILL NOT REDUCE LIQUIDITY AT THIS TIME. The Fed cannot reduce liquidity because the economic environment is […]
The Inherent Trouble With Too Much Stimulus
Welcome to 2010! Now that the holidays are over and last minute Tim Geithner vandalism complete, actual real economic statistics should begin to bleed out. First up, pending home sales… ECONX Pending Home Sales M/M -16.0% vs -2.0% consensus, prior +3.9% …Now there is a real figure and one that should surprise no one reading this blog on a regular basis. Moreover, […]
The Fed Meeting Fallout, US$ Strength / Smaller than Expected Debt Limit Increase, Shadow Home Inventory on the Rise, State Budget Problems
The Fed chose not to change rates or comments during the Wednesday meeting. While we anticipated this outcome in our Monday post, the market reaction has been anything but expected. In months past the type of Fed commentary exhibited this week led to a lower US$ and inverse strength in commodity and equity markets. This week the results have been […]
