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Trade Wars Will Be The New Subprime

By |2019-05-31T16:23:12-04:00May 31st, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Trade wars are rapidly turning into subprime mortgages. A few billion in tariffs will have wrecked the entire global economy, they’ll claim. Just like all that toxic waste subprime mortgage fiasco led inevitably to the Great “Recession” and global panic. Neither will be true, except insofar as both were symptoms of the far greater cause. [...]

Canada Signals Japan For Bond Yields

By |2019-04-24T17:45:02-04:00April 24th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Back in October, late October specifically, the Bank of Canada removed the word “gradual” from its policy statement. Inflation, staff Economists projected, was moving up as was the Canadian economy. It was finally time to become more aggressive. Freed from that one word, BoC officials could opt for a “rate hike” at every meeting. It [...]

‘Bond Trading’ Exodus, The Global Economy’s Q4 Landmine

By |2019-04-05T17:42:38-04:00April 5th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It isn’t just US or European banks which are shrinking. The nature of this post-August 9, 2007, world is just that – global. Sure, there are regulations which have made investment banking more expensive. But there isn’t a rule or law that Wall Street (really Lombard Street) wouldn’t “discover” a way to circumvent it if [...]

Chinese Robots, New York Heartburn, and Goldman Sach’s Central Role

By |2019-02-05T17:59:06-05:00February 5th, 2019|Bonds, Commodities, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In the continued absence of regular data, as the US federal government attempts to get back up to speed before the next lull, it is perhaps appropriate to continue on with this week’s parade of anecdotes. Here I’ll discuss three of them, each seemingly unrelated to the others. To begin, we start with Chinese robots. [...]