Part two of a two-part series on the repo market. So the Federal Reserve Board buys bonds, creating trillions in cash, which it then pays interest on to banks, who…
The Bond Market’s Plumbing Springs a Leak
Part one of a two-part series on the repo market. “A lot o’ people don’t realize what’s really going on. They view life as a bunch o’ unconnected incidents ‘n…
Fed Driving in Reverse – Part 1
Driving a car in reverse is much more difficult than driving it forward. You need to look behind you or constantly check the rear-view mirror (or camera) and try to…
Addressing a Debt Crisis with More Debt
Last week, we discussed causes of the Great Recession. Today, we look at how it was addressed. The financial crisis was essentially a debt crisis. Mortgagees were unable to pay…
Fed’s Bond Buying Not the Success Some Claim
“When money gets tight, greed turns to fear … “ …
The Ghost of Ben Bernanke
“The good news is bad news.” …
How Ben Bernanke Saved the World
“It became necessary to destroy the town to save it.” U.S. major talking about Bến Tre, Vietnam The Wall Street…
Abnormalization and QE4
It seems to be a policy of the Federal Reserve Board to never use a two-syllable word when a four- or five-syllable word is available. So we have “quantitative easing”…
ECB: Cheap Oil Is the Problem, Not Iran’s Nukes
If the European Central Bank (ECB) is to be believed, the biggest threat from the Middle East is not Iran getting nukes, it’s Saudi oil. What’s the big deal? Saudis…
Correct Yourself
Last week was a tough week for investors, given that the market dropped for six consecutive days. It was an even tougher week for financial advisors and investment managers who…