money markets

When The Problem Lies In The One Place Nobody Looks

By |2019-04-24T15:45:31-04:00April 24th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It’s the most testable of all hypothesis, yet the one which no one wants to test. The central bank is central. All the textbooks say it. You’ve been taught to believe it from your first introduction to Economics and finance. Whatever happens, you aren’t supposed to fight the Fed. The US central bank unleashed powerful, [...]

Phugoid Dollar Funding

By |2019-04-03T16:42:05-04:00April 3rd, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

On August 12, 1985, Japan Airways flight 123 left Tokyo’s Haneda Airport on its way to a scheduled arrival in Osaka. Twelve minutes into the flight, the aircraft, a Boeing 747, suffered catastrophic failure when an aft pressure bulkhead burst. The airplane had been improperly repaired from a tailstrike (the tail of the aircraft actually [...]

The Basis Behind The Forming ECB ‘Pause’

By |2019-01-25T16:04:22-05:00January 25th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

These things are all related, not that they are in any way connected by conventional thoughts on the subject of the global economy. Two European officials are now on record hinting at an ECB “pause.” There is one already underway in the US, Federal Reserve officials past and present debating how long it might last [...]

The Fed IS the Problem

By |2008-11-06T01:18:55-05:00November 6th, 2008|Economy|

The result of the Federal Reserve's serial market interventions is that they are now competing with the private sector (via Bloomberg):  ``No one wants to lend because they are still wary of values of bank balance sheets, and no one wants to borrow from the money market because they can borrow directly from the central banks,'' said Alessandro Tentori, [...]

September Market Report – Government to the Rescue

By |2008-09-22T11:11:23-04:00September 22nd, 2008|Markets|

Note: This update is longer than usual. I feel it is important for everyone to understand how the problems facing our economy developed and what steps are being taken to correct them. The details of the latest government rescue effort are not completely available yet, so it is hard to predict the outcome, but it [...]