Posts filed under “Federal Reserve”

“Pulling Out All The Stops”

Cassandra Does Tokyo is an Investment Banker now relocated to Japan

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Journos, observers, commentators, bloggers, traders, analysts, strategies, newscasters, reporters, and so it seems just about everyone else has a view on QE. And the result is overwhelminglyINTENSE. They’ve PULLED OUT ALL THE STOPS!!!!. No, not the ECB. I mean, anyone writing about the ECB’s announced policy actions.Below is an exhaustive (hyperbole?)list of the terms and associated language casually garnered from almost all the QE headlines and articles over the past few days. One could of course forgive any single instance of excitement, but in surveying the landscape, it’s clear something’s in the water. Especially in the United Kingdom (the nation with the highest and most pernicious sustained primary deficit, and a grand-canyon-sized CA gap – NB: intentionally exaggerated language) which is the source of most hyper-ventilative language (yes you guessed the Telegraph & Ambrose E.P. wins again). Even the usually-dry FT leapt on the bandwagon (sorry – OTT metaphoring is infectious), and sober BBC “joined the party” (drats!I did it again). Just have a look….unleashes
triggers
pushes-the-button on
massive
massive
boost
huge
massive
injects
launches
pump
pull-trigger
bang
financial bazooka
d-day
salvo
unfettered
full-fledged
shock & awe
full-scale
massive
scheme
finally
long-awaited
fatally
exhausted
deflation
rescue
revive
save
struggling
back-door
plummeting
deep-division
severe reservations
wary
slide
teetering
brink
downward-spiral
reluctance
damage
faulty
disappoint
fatally-weaken
unimpressed
questions
flawed
lambast
stagnation
underwhelmed
wrong type
tensions simmer
inevitably fail
deservedly fail
last throw of the dice
too-small-too-late
won’t save
will not solve
unclear
diminished
uncertainty
dangerously-close
save-from-ruin

Poor Draghi must feel like he’s been gang-raped. OK, so it’s “momentous”, unprecedented” blah blah blah. Really? Euro 1 trillion (including existing programs) over the course of a year across an economy sporting GDP > EUR14 Trillion; Net Assets> (I’ve no clue but’ll stake a stab…EUR 70 Trillion??)….hardly worth losing one’s integrity over, considering all the program’s practical limitations. As it happens, the Irish, and foreign obserservers writing in ENglish (India, Japan) were the most measured and least hyperbolic, using neutral language and refraining from the gratuitous ummm errr gratuitousness with words tethered to reality like.

start
begin
announced
revive
stimulate
program

Yes, the latter list is short…

 

Category: Federal Reserve, Financial Press, Think Tank

Do contractionary monetary policy shocks expand shadow banking?

Category: Federal Reserve, Think Tank

Bianco: Lack of Inflation to Prevent Fed Rate Move

Click for video.

Source: Bloomberg

Category: Federal Reserve, Fixed Income/Interest Rates, Inflation, Video

U.S. Treasuries Off to Best Start Since 1974

“Some day interest rates will go up. Until then the Treasury bears are missing one of the greatest bond rallies in history.” — Jim Bianco, Bianco Research Since 2015 began, everyone has been fixated on the U.S. dollar and oil prices. I want to direct your attention to what may be the greatest show now…Read More

Category: Contrary Indicators, Federal Reserve, Fixed Income/Interest Rates

Central Bank Update

Central Bank Update David R. Kotok Cumberland, February 3, 2015     Over the years we have posted an aggregate central bank balance sheet chart on our website. The current chart includes only three central banks: the European Central Bank (ECB), the Federal Reserve (Fed), and the Bank of Japan (BOJ). We send thanks to…Read More

Category: Federal Reserve, Think Tank

Category: Federal Reserve, Think Tank

Can Janet Yellen really help you with your investing?

Source: Yahoo Finance

Category: Federal Reserve, Investing, Media

Super Mario Delivers

Mr Draghi (Super Mario) delivered yesterday, despite the leaks which virtually gave away the details of his announcement ahead of the press conference. The EZ Central Banks (coordinated by the ECB), together with the ECB is to buy E60bn of government, ABS’s, covered bonds and agency debt, per month, commencing March 2015 up to at…Read More

Category: Bailouts, Federal Reserve, Think Tank

Finally the details . . .

The ECB said the combined monthly purchases which includes ABS and covered bonds and now include sovereign and agency bonds will total 60b euros per month and will continue to do so “until we see sustained inflation improvement.” The ratio will be based on the capital key where about half is made up of Germany,…Read More

Category: Bailouts, Federal Reserve, Think Tank

FR, ECB, BoJ: Central Banking’s Grand Experiment

Central bankers, most of them versed in the history of the Great Depression and deflation, haven’t been exactly reading from the same hymnal for the past few years. There are signs, though, that this might be changing. Perhaps it is merely a coincidence, but the U.S., with the most activist central bank and after more…Read More

Category: Currency, Federal Reserve