Helicopter money is the rage. Central banks are talking about it. Economists are debating it. The media is rife with coverage. While it sounds important, it is not precisely clear what helicopter money means. It...
Deflation is portrayed as the great economic scourge. It exacerbates debt servicing costs and encourages consumers to defer purchases. Central banks in Japan and Europe have responded with aggressive, unorthodox measures, often combining asset purchase...
There are three, and arguably interrelated, known unknowns that are seemingly on everyone’s mind. First is the decline in global equity markets. Is this simply a long overdue correction? Wasn’t August 24 some sort of...
Companies are selling bonds like madmen. This year through Tuesday, investment-grade and junk-rated companies have sold $438 billion in new bonds, up 14% from the prior record for this time of the year, set in...
The Federal Reserve meeting is the highlight of the week. The most pressing issue is the continued evolution of its forward guidance that will maximize the room to maneuver. Until now officials have indicated that...
There is much trepidation. The US employment report is at hand. There is great uncertainty as market participants realize that even state of the art forecasting techniques have a general weak ability to anticipate the marginal...
The Fed, which appears genetically incapable of seeing bubbles until afterwards, must be seeing this: stock market margin debt relentlessly spiking into the stratosphere. Leverage is a sign of investor confidence – and at a...
The euro is flirting with $1.38. Many, including ourselves, have been surprised by the euro’s strength in H2 and its persistence. The net speculative futures position briefly moved switched to the short side in late November....
A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. The...
A global financial crisis that led to a deep recession in 2008 which brought the U.S economy to its knees resulting in flow of massive liquidity across the emerging economy. Current state of US economy...
Late yesterday, Yellen’s prepared remarks for her Senate Banking Committee confirmation hearings were released and sent the dollar in a tailspin in thin activity. The dollar has been gradually clawing back those losses. At the same...
Federal Reserve announcement of a possible Qe Tapering of its massive bond buying program, implying unwinding of easy or cheap money availability in emerging economies created jitters in emerging markets’ financial markets world over. But, the...
