por Fenix » Sab Ene 16, 2016 7:51 pm
Exclusive: Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears
Submitted by Tyler D.
01/16/2016 - 14:21
The Dallas Fed met with the banks a week ago and effectively suspended mark-to-market on energy debts and as a result no impairments are being written down. Furthermore, as we reported earlier this week when first nothing the rumor, the Fed indicated "under the table" that banks were to work with the energy companies on delivering without a markdown on worry that a backstop, or bail-in, was needed after reviewing loan losses would exceed the current tier 1 capital tranches.
The Deflation Monster Has Arrived
Submitted by Tyler D.
01/16/2016 - 12:04
The world’s grand experiment with debt has come to an end. And it’s now unraveling.
When Omnipotence Fails: JPMorgan Warns Upside Uncompelling As Central Bank Put Wanes
Submitted by Tyler D.
01/16/2016 - 19:15
It would be hard for a year to start any worse than 2016 has... "Prices are oversold and sentiment hasn’t been this despondent in a long time (even Aug/Sept wasn’t this palpably negative) but any bounce will not be particularly impressive and in a lot of ways that is the main problem as the upside just isn’t compelling enough to make a major stand...as Western central banks attempted to mollify sentiment with dovish rhetoric but to no avail."
How QE Crushes The Real Economy & Why The Secular Low In Treasury Yields Lies Ahead
Submitted by Tyler D.
01/16/2016 - 17:20
The economy was supposed to fire on all cylinders in 2015. Sufficient time had passed for the often-mentioned lags in monetary and fiscal policy to finally work their way through the system according to many pundits inside and outside the Fed. Surely the economy would be kick-started by: three rounds of QE and forward guidance; a record Fed balance sheet; and an unprecedented increase in federal debt to $18.63 trillion in 2015, a jump of 86%. Further, stock prices had gained sufficiently over the past several years, thus the so-called wealth effect would boost consumer spending. But the economic facts of 2015 displayed no impact from these massive government experiments.
Iran Sanctions Lifted As Nuclear Deal Implemented, US Hostages Freed
Submitted by Tyler D.
01/16/2016 - 16:50
U.S. + EU will begin lifting nuclear-related sanctions, expanding the horizon of opportunity for the Iranian people.
— John Kerry (@JohnKerry) January 16, 2016
Too Many "Think Tanks" Are Just Kool-Aid Fueled Group-Think
Submitted by Tyler D.
01/16/2016 - 16:10
Over the last 5 years the various Fed QE (quantitative easing) interventions into the capital markets has facilitated dumb luck trading into “genius” status, and no clue analysis into “spot on brilliant” prognostications. The real issue at hand is many believed their own press, and the current state of egg on their face would make many a Denny's blush. As bad as that sounds – it gets worse.
With Draghi On Deck, ECB Mulls Steps To Solve "Non-Existent" Bond Scarcity Problem
Submitted by Tyler D.
01/16/2016 - 15:35
It’s nearly that time again. On the heels of December’s “big disappointment” wherein Mario Draghi cut the depo rate by a “measly” 10 bps and extended PSPP by an underwhelming six months, the ECB meets again next week, and this time around, expectations are low. But even if Draghi doesn't budge in January, most expect more easing is one the way. The only question is this: how will the Frankfurt cabal cope with the shrinking pool of purchase eligible assets?
The Great Unraveling Looms - Blame The 'Austrians'?
Submitted by Tyler D.
01/16/2016 - 15:00
Decades of accumulated market distortions appear to be on the brink of a great unwind, most of which can be blamed on expansionary monetary policies. If so, the banking crisis of 2008 was a prelude, rather than the crisis itself. The Keynesians will blame the Fed for a complete policy failure. The reality is, that by implementing conventional policies on the recommendation of group-thinking macroeconomists, the central banks have dug a hole too deep to escape. Recognition of the merits of Austrian sound money theory will simply expose this reality sooner than later.
Earthquake Economics - Waiting For The Inevitable "Big One"
Submitted by Tyler D.
01/16/2016 - 13:15
Several more slips like this one and the President’s strongest, most durable economy in the world could backslide into recession. On top of that, ‘the big one’ could rupture at any moment.
Pro-China Party Falls As Taiwan Elects First Female President In "Historic" Landslide Election
Submitted by Tyler D.
01/16/2016 - 12:41
"Why has public opinion changed so much? How did our party misread public opinion? We failed. The Nationalist Party lost the elections. We didn't work hard enough."
Would You Hire It: China's "Resume" Revealed
Submitted by Tyler D.
01/16/2016 - 11:22
After the worst two-week start to US stock trading in history, bulls need some cheering up. So here, courtesy of Citi's Brent Donnelly, is some levity: this is what China's Curriculum Vitae would look like if it was applying for a job. It is also a great summary for those who need a handy cheat sheet of where China was, where it is, and where it is going.