balance sheet capacity

A Trickle of Belgian Colored Deutsche Bank Speculation

By |2019-07-09T19:17:28-04:00July 9th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In October 2011, the bank’s Chairman bristled at the characterization. His was not going to be a “bad bank” as many in the financial media had been saying. Pierre Mariani, chief executive of Belgium’s Dexia, preferred instead to call it the “residual bank.” No matter the label, the firm was being bailed out for the [...]

What If There Was No Punchbowl In The First Place?

By |2019-05-30T18:00:11-04:00May 30th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The celebration was premature. As usual, people were extrapolating reflation into recovery. Getting relatively better after being really bad is not the same as truly healing. Reflation is a necessary but by itself insufficient condition for normalcy. The latter requires the former as a first step and then needs enough momentum (of opportunity) to carry [...]

The Rest of February TIC

By |2019-04-16T19:38:59-04:00April 16th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The rest of the TIC data was relatively straightforward, at least in viewing it as a proxy for monetary conditions offshore (spilling over, as EFF, onshore). Through February 2019, the usual: shortage of balance sheet capacity, banks cutting back cross-border US$ liabilities (except for resales), foreigners selling US$ assets as a consequence. The official sector [...]